Equity Puglia, the financial instrument for the growth of startups and innovative SMEs , is underway . Delli Noci: “This is how we increase Puglia's competitiveness in strategic sectors”

Date:
06/29/2023

Business development financing In the foreground

The biggest opportunity in Puglia to amplify the growth of startups and innovative small and medium-sized businesses has just started. It is called Equity Puglia and it is the latest and most innovative financial instrument wanted by the Puglia Region and managed by the in -house and regional financial company Puglia Sviluppo.

The new tool gives the possibility of increasing the level of capitalization and therefore the financial solidity of companies and does so with the collaboration of specialized investors.

The initial financial allocation is 60 million euros and will allow new capital to be injected into startups and innovative small and medium-sized enterprises for at least 120 million euros. Co-investment funds will be financed for companies that, in line with the S3 Strategy, are attributable to the four "transversal" themes that determine challenges and opportunities for all supply chains: environmental sustainability and the circular economy; information technologies for industry and society; life sciences and health technologies; blue growth and the sea economy.

The notice, which collects membership proposals from managers of Italian AIFs (alternative investment funds reserved pursuant to the TUF, the Consolidated Law on Finance) or EU AIFs, is already online and will close on 6 October.

The co-investment funds established with regional resources will participate, together with the venture capital funds of the identified managers, in investment operations in innovative small and medium-sized enterprises that have development programs in the Puglia region.

“ Innovative startups and SMEs – said the councilor for economic development of the Puglia Region Alessandro Delli Noci – are giving a huge boost to the development and competitiveness of Puglia. Our goal through this alert is to give them the edge to take a big leap further through access to the capital market.

With this notice we intend to support the development of innovative companies in strategic sectors such as aerospace, agro-industry, green and blue economy, biotechnology, IT , artificial intelligence, energy transition and digital transformation, mechatronics , robotics, healthcare , innovation applied to infrastructure and industry. The advantage for companies is not only economic or financial, but also strategic because the new investors will bring their experience to support the companies, in addition to capital".

“The new measure – explained the councilor – is financed with public resources from the 2021-2027 programming. The Puglia Region will be able to increase its endowment and, therefore, the possibility of investing further resources in co-investment funds".

The objective of the initiative is to attract qualified professional investors to the regional territory and to enhance innovative Apulian businesses by offering them important opportunities for growth and development. At the same time, the operation of the Funds will allow companies to improve their organization and their ability to access the capital market.

This is an extremely innovative initiative that will strengthen the path already started which is leading Puglia to become one of the main innovation hubs in Italy.

The Notice is already available on this portal, where it can be downloaded with the attachments, and on the Empulia platform , which must be accessed to submit the application.

How the tool works

The Funds will be able to make investments in newly issued risk capital ( equity ) through the injection of new liquid financial resources into companies.

Managers will be able to apply to set up co-investment funds whose shares will be subscribed by Puglia Sviluppo with a commitment public (commitment) of 10 or 20 million euros for each fund. The regional financial instrument, with an initial endowment of 60 million, will therefore be able to select from three to six investors with whom new capital can be injected into small and medium-sized Apulian startups for at least 120 million euros, as regional participation is limited to 50% of each operation.

Investments in "target companies" (startups and innovative small and medium-sized enterprises) will be made pari passu , i.e. under the same terms and conditions between the co-investment fund set up with public resources and the main fund of the specialized manager.