EBRD Venture Capital

The European Bank for Reconstruction and Development (EBRD) operates its Venture Capital Investment Programme (VCIP) from its headquarters in London, United Kingdom. As a unique player in the venture capital landscape, EBRD's VC arm is not a traditional profit-maximizing fund but rather a development finance institution with a mandate to foster robust venture capital ecosystems in its countries of operation. Its mission aligns with identifying and backing entrepreneurs who possess the vision, ambition, and technology to build global leaders, particularly in regions where access to early-stage capital might be limited.

The EBRD Venture Capital Investment Programme employs a dual-pronged investment strategy. Primarily, it acts as a significant limited partner, investing into promising venture capital funds that are active in its regions of operation, thereby strengthening the local fund management industry. Beyond this fund-of-funds approach, the VCIP also engages in direct co-investments alongside these partner funds. This allows EBRD to directly support high-growth technology companies across various sectors, including digital transformation, fintech, healthtech, and cleantech, ensuring that innovative startups receive the necessary capital to scale.

For its direct co-investments, EBRD Venture Capital typically targets early to growth-stage technology companies. The typical first cheque sizes for these direct co-investments range from approximately $1 million to $5 million, though larger amounts up to $10 million can be deployed in exceptional cases. Since its launch in 2018, the VCIP has been instrumental in deploying capital and expertise, aiming to bridge funding gaps and stimulate innovation in countries spanning Central and Eastern Europe, Central Asia, and the Southern and Eastern Mediterranean regions. This strategic focus underscores EBRD's commitment to economic transition and sustainable development through technological advancement.

The program's impact extends beyond mere capital provision; it also contributes to best practices in governance and environmental and social standards within its portfolio companies. By partnering with established VC funds and directly investing in groundbreaking technologies, EBRD Venture Capital plays a crucial role in nurturing the next generation of tech leaders and driving digital transformation across its diverse operational footprint.