The European Investment Bank (EIB) is providing $13.2 million to the rapidly growing e-bike company Fazua GmbH. The funds are being made available through the EU bank’s Venture Debt Product, a typeof risk capital for innovative companies. The loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI). EFSI is a core component of the Investment Plan for Europe (IPE) – also known as the Juncker Plan – under which the EIB and the European Commission are working together as strategic partners to boost the competitiveness of the European economy. Fazua GmbH, which is based in Munich, intends to use the funds for the expansion of the company and for research and development activities.
Established in 2013, the start-up business manufactures super-lightweight e-bike drive systems, which fit, including the motor and battery, in the down tubes of bicycles. With its drive systems, aimed primarily at sports cyclists, who want optional support especially in critical moments, Fazua is closing the gap between traditional e-bike drives and conventional, non-motorised bicycles. Since entering the market, Fazua has built up a customer base that now includes more than 35 European manufacturers offering bicycles in the e-mountain bike, e-urban, e-gravel and e-racing bike segments, where Fazua has a leading market position.
EIB Vice-President responsible for operations in Germany and EFSI Ambroise Fayolle said: “With ourhigher-risk financing operation for Fazua, we are closing a gap in the market for highly innovative SMEs, which need long-term growth capital without the risk of dilution. Fazua can now fully concentrate on its business growth and the development of follow-up products.” He added: "The project is an excellent example of the added value that the Investment Plan for Europe offers young, innovative companies. Our cooperation with Fazua, made possible by the Juncker Plan, shows how Europe can promote innovation and competitiveness."
European Commission Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “By guaranteeing the EIB’s financing to Fazua, the Juncker Plan once again shows its support for an innovative, ambitious, EU-based startup keen to scale up and develop new products to bring to market.Fazua’s ongoing success translates into more jobs and sustained growth for the local economy, whichis the core focus of the Juncker Commission.”
Fazua’s CEO Fabian Reuter also welcomed the financing agreement: “The capital provided by the EIBis the ideal financing instrument for us in our current business phase. In addition to the “evation” drive system, which has already been very successfully launched on the market, we can now invest even more in the expansion of our product range.” He also stressed the importance of the production anddevelopment site in Ottobrunn near Munich. “It is crucial for us to maintain our successful businessmodel with the highest quality standards, production under our own roof in Germany and reliable partners, most of whom also come from Europe," said Reuter.
Note to editors:
European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Fazua
Fazua’s goal is to revolutionise today’s and tomorrow’s e-mobility. With the “evation” drive system, the team around CEOs Johannes Biechele and Fabian Reuter is providing an innovative electric drive system that meets sporting demands in particular while generating the natural feeling of non-motorised bicycle riding.
The young Munich company was founded in 2013 and has 85 employees. The high quality standards,the high level of innovation of the “made in Germany” product and the underlying service concept havealready convinced more than 35 renowned European bicycle manufacturers to bring bicycles with the modular drive system on to the market.
Investment Plan for Europe
The Investment Plan for Europe – also known as the Juncker Plan – is one of the EuropeanCommission’s top priorities. It aims to boost investment, thereby creating jobs and fostering growth. Tothis end, smarter use is being made of new and existing financial resources and obstacles to investment are being removed. At the same time, investment projects are being brought more to the attention of the public and supported by technical assistance.
The European Fund for Strategic Investments (EFSI) forms the central pillar of the Juncker Plan. It provides first-loss guarantees, enabling the EIB to finance more projects, which often carry greater risks. EFSI has already achieved tangible results. The projects and agreements approved for funding under EFSI are expected to mobilise almost EUR 424 billion of investments and will benefit 967 000 small and medium-sized enterprises in the 28 EU countries. For further information on the results of the Investment Plan for Europe, click here.
