FINOVA – Fund to Support Financing for Innovation (“Fundo de Apoio ao Financiamento à Inovação”), was created by Decree-Law no. 175/2008, of 26 August 2008, as a privileged instrument for achieving the objectives set out in SAFPRI (“Sistema de Apoio ao Financiamento e Partilha de Risco”). This program, created under the scope of the National Strategic Reference Framework (QREN), is financed by the Operational Programme for Competitiveness Factors (COMPETE) and Regional Operational Programmes (POR) of Lisbon and Algarve, and intends to boost the range of financial tools which provide better financing conditions for Portuguese SME.

FINOVA specializes in financing companies and promoting innovative projects with the following objectives:

enhance the role of venture capital in supporting SME

reinforce the system of mutual guarantee and promote the expansion of assistance to innovative companies and projects

uphold contracting lines of credit with the financial system

endorse the use of new tools, including convertible debt and equity instruments and securitization

promote entrepreneurship

To achieve its goals, FINOVA may support different funding tools:

Equity Financing

Venture capital funds;

Special investment funds;

Financing instruments to venture capital intermediaries;

Venture capital syndication funds;

Funds of funds;

Other financial innovation that contribute to strengthening own equity.

Debt Financing

Mutual counterguarantee fund;

Incorporation or increase of share capital of mutual guarantee companies;

Credit securitization guarantee funds;

Real estate investment funds;

Credit Lines with guarantee and interest bonus and other charges;

Other financial innovation tools that contribute to improving the access of SME to financing by debt.

FINOVA has an initial capital of 100 million Euro, which will be underwritten by national Public Entities targeted to support the funding and innovation of companies such as IAPMEI, AICEP, Turismo de Portugal, ADI, CCDR LVT and CCDR Algarve, and PME Investimentos – Sociedade de Investimento SA. was appointed as the Management Company of the fund.

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