The Relaunch Fund for Startups and Innovative SMEs is active

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The Relaunch Fund for Startups and Innovative SMEs is active

Cdp Venture Capital SGR - National Innovation Fund has established a new instrument called the Relaunch Fund which, thanks to the implementing decree of art. 38 paragraph 3 of the Legislative Decree Relaunch of 1 October last of the MISE, manages the sum of 200 million that the Ministry has allocated to support the restart phase of Startups with high technological potential and innovative SMEs from the emergency Covid-19.

The Relaunch Fund has a maximum duration of 10 years from the closing date of the subscription period, extendable for a further five.

The duration of the investment period is five years from the start of operations.

This tool constitutes an important form of collaboration and connection between the operators of the Italian Venture Capital ecosystem. With the Relaunch Fund, in fact, the Qualified and Regulated Investors who operate in Italy will be the ones to report the startups and Innovative SMEs in which they are about to invest or have already invested in the six months prior to the entry into force of the Relaunch Decree.

In this way, i) the loans will be made in matching with accredited investors, ii) the capital invested by Cdp Venture Capital SGR will amount to a maximum of one million euros for each individual Startup or SME invested, which raise at least up to 250 thousand euro from private co-investors, iii) initial investments will be made with:

- loans by converting;

- through the subscription of participatory financial instruments;

- through the provision of subsidized loans;

- through other debt financial instruments that provide for the possibility of repayment of the contribution carried out in favor of Startups and Innovative SMEs.

Any subsequent rounds will instead take place through the investment in equity.

In addition, the companies subject to investments by the Relaunch Fund must have their headquarters and activities in Italy and show development potential based on the following requirements:

1. growth of revenues and customers;

2. a sustainable three-year business plan;

3. strategic contracts or partnerships or based on registered patents.

In the first six months, the fund will favor companies that in the first half of 2020 have successfully completed the investigation for the Smart & Start Italy incentive or have suffered a reduction in turnover of at least 30% compared to one of the semesters of 2019.

Marco Corica