Page 21 - COMPASS - COMPETITIVENESS REPORT 2022 - COUNCIL OF COMPETITIVENESS IN GREECE

“COMPASS” REPORT 2022 – COUNCIL ON COMPETITIVENESS OF GREECE 19

Even after disinvestment, these companies continue to carry Another important development in the financing of innova-
out part of their operations in Greece, maintaining their local tive companies is Innovation Loan, a new financing instru-
staff in Athens, Thessaloniki, Patra, and Crete. ment designed and presented by the Hellenic Development
Bank (HDB), which focuses on innovation and ESG and, for
It is clear that the innovative startup ecosystem is expand- the first time, combines bank loans and state grants. Specif-
ing and maturing, with a range of funding initiatives and ically, startups or SMEs with an investment plan associated
financing tools being added that are expected to accelerate with innovative projects and ESG criteria and aspiring to
the competitiveness of these startups. The Hellenic Devel- boost their sustainability and competitiveness could take out
opment Bank of Investments’ (HDBI, former TANEO Capital loans ranging in value from €25,000 to €400,000, with a 10-
Fund) AccelerateTT initiative is a fund-of-funds financing year maturity period and a grace period of up to three years.
product that aims to cover the entire financing chain of in- If, during the implementation of the plan, it is confirmed that
novative startups and to promote technology transfer from ESG criteria and innovative action specifications are met,
research to the market. 20% of the loan will be reclassified as a grant.

Additionally, Q-Equity and InnovateNow are two new mod-
ern financing tools that aim to promote and support digital The above lead to the following main conclusions, as financ-
technologies and systems; provide capital for Greek compa- ing tools are expected to:
nies; boost extroversion, competitiveness, production and
trade; create new jobs; and support business and the econ- • address the need for alternative financing that many
omy in general. Q-Equity focuses on the establishment and companies experienced as a result of the Covid-19 pan-
management of venture capital funds/private equity funds demic and its impact, as well as due to the prolonged
that will invest through equity/quasi-equity instruments uncertainty and instability.
in enterprises that, at the time of the investment, maintain
• cover the gap of Series A financing of innovative
premises in Greek territory. In the context of InnovateNow,
businesses. In recent years, despite bigger tickets from
HDBI will make investment decisions based on financial cri-
Greek funds/VCs, there has been a gap in financing be-
teria and will participate, up to 60%, in investment schemes,
tween seed and private equity. The new funds-of-funds
provided that, when each investment is realised in an
will cover the full range of financing needs of compa-
eligible enterprise, public participation does not exceed 50%
nies showing extroversion and significant scalability
of said investment. The goal is to attract private investors to
prospects.
realise investments as well as to strengthen R&D in cut-
ting-edge technologies.
• attract foreign private funds. As the number of Greek
funds/VCS investing in innovative companies grows, we
A new fund of funds for startups has been established in
are seeing an improvement in terms of investments and
Europe with the participation of certain EU member states,
of the country’s results in technological networks and
including Greece. The new instrument, named Scale-Up Ini-
digital readiness. At the same time, startups are organ-
tiative, is to finance tech scaleups that have immediate scal-
ically growing into healthy companies and a climate of
ability prospects and which can go on to play a leading role,
investment confidence is taking shape, allowing foreign
globally, in regard to new technologies. This new financing
investors to see our country as an opportunity for co-in-
instrument aims at supporting European tech scaleups, the
vestment.
ultimate goal being to create 100 tech unicorns.