The European Investment Fund (EIF) has signed an agreement with Sweden-based finance company Gilion to provide access to more than €43m ($46.9m) in growth funding to Nordic, German, and Dutch technology companies.
This initiative is particularly targeted at small and medium-sized enterprises (SMEs) and small mid-caps within the software-as-a-service (SaaS) sector.
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The partnership will enable Gilion, formerly known as Ark Kapital, to extend loans with reduced interest rates and favourable terms, thanks to EIF guarantees.
These terms are designed to support high-growth companies in scaling their operations, expanding internationally, and fast-tracking digital innovation.
EIB Group vice-president Thomas Östros said: “Ensuring access to finance for innovative SMEs and mid-caps is key to strengthening Europe’s position as a global leader in digitalisation.
“This agreement will provide tech companies with the resources they need to scale up, create jobs and contribute to Europe’s digital economy.”
The funding agreement is backed by the InvestEU programme, which seeks to mobilise over €372bn in investments for EU policy priorities, including digital transformation and innovation.
This new guarantee deal is a continuation of the EIF’s support for Gilion, following a previous guarantee in 2023 that amounted to €146m.
Gilion co-founder and chief operating officer Axel Bruzelius said: “Funding high-growth companies is an important, but difficult, mission.
“This guarantee gives us a huge building block in accomplishing this mission. I think everyone can agree that now is the time to strengthen the European funding infrastructure and, with this support, we will be able to scale faster in our markets with acceptable terms for both us and the entrepreneurs.”
