Market Development

Finnish company Wirepas gets €24 million in EIB financing to advance self-repairing large-scale wireless networks

The European Investment Bank (EIB) has provided €24 million in financing to Finnish company Wirepas, a deep-tech firm developing wireless connectivity for large-scale industrial Internet of Things (IoT) applications. The EIB backing will support Wirepas' research, development, and innovation activities in Finland and France, as well as business growth in Europe and beyond.

Wirepas' technology enables millions of devices to autonomously connect and communicate directly with each other, creating ultra-resilient and cost-efficient networks for critical infrastructure. This technology is seen as crucial for Europe's digital sovereignty and sustainable industrial transformation. The EIB support takes the form of venture debt, a type of long-term financing that complements venture capital and other equity investment.

The operation contributes to the InvestEU programme objective of promoting research, development, and innovation across Europe. It also supports the EIB Group's TechEU programme, which aims to nurture innovative European entrepreneurs and scale up innovative startups. The €24 million in EIB financing will help Wirepas accelerate its technology development and deployment, enabling industries and cities to connect millions of devices securely and efficiently.

Why it matters

The European Investment Bank's (EIB) financing for Wirepas highlights the growing importance of innovative technologies in supporting Europe's digital transformation and industrial innovation. As companies like Wirepas develop software that enables millions of devices to autonomously connect and communicate, they are poised to play a crucial role in building the next generation of digital systems for industry, energy, and cities.

The EIB's venture debt financing complements traditional equity investment and supports the growth of innovative companies like Wirepas. This type of financing is particularly important for deep-tech companies that require significant upfront investments to develop and deploy new technologies. By providing access to capital, the EIB is helping to strengthen Europe's digital sovereignty and accelerate the deployment of secure, energy-efficient technologies.

As the European Union continues to prioritize its digital infrastructure and industrial innovation objectives, initiatives like the InvestEU programme are crucial in mobilizing private investment and supporting innovative startups. The EIB's support for Wirepas and other companies demonstrates the bank's commitment to promoting research, development, and innovation across Europe, ultimately driving economic growth and competitiveness.

Key points

* The European Investment Bank (EIB) is providing €24 million in financing to Finnish deep-tech company Wirepas to support its research and development activities in Finland and France, as well as business growth in Europe and beyond. * The EIB backing will complement venture capital and other equity investment for Wirepas, while limiting immediate dilution for existing shareholders through a type of long-term financing called venture debt. * Wirepas develops software that enables millions of devices to autonomously connect and communicate directly with each other, supporting the development of large-scale, ultra-resilient networks for critical infrastructure in various sectors. * The EIB's support takes place under the InvestEU programme, which aims to promote research, development, and innovation across Europe while strengthening the European Union's ambitions in digital sovereignty and sustainable industrial transformation. * Wirepas' technology is centered around an open 5G standard called NR+, which enables millions of devices to operate in the same network with high reliability and low energy use, supporting the European Union's goals in digital infrastructure and industrial innovation. * The €24 million EIB financing will strengthen Wirepas' ability to innovate in Europe while supporting the company's ambitions for digital sovereignty and sustainable industrial transformation across the continent.

Institutional context

Institutional context The European Investment Bank's financing for Wirepas highlights the EIB Group's strategic focus on supporting innovative, high-growth companies in Europe. As part of its TechEU programme, which aims to promote technological innovation and entrepreneurship across the continent, the EIB is providing venture debt financing to bolster research, development, and business growth activities.

The InvestEU programme, launched by the European Union, complements the EIB's efforts by offering a long-term funding framework that leverages substantial private and public funds. This initiative supports the EU's strategic priorities, such as the digital transition and the European Green Deal, by facilitating investment in key sectors like technology and infrastructure.

The InvestEU programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The EIB Group acts as a key implementing partner, deploying €26.2 billion from the EU budget guarantee to invest in projects across Europe. This funding mechanism increases risk-bearing capacity for participating partners, mobilizing at least €372 billion in additional investment.

The European Investment Fund (EIF), a subsidiary of the EIB Group, plays a crucial role in supporting small and medium-sized businesses and startups through guarantees and equity investments. The EIF has launched initiatives like the European Tech Champions Initiative, which aims to scale up innovative startups across Europe.

Practical considerations

Practical considerations for practitioners include carefully evaluating the suitability of venture debt financing options to support innovative companies with high growth potential. This may involve assessing the company's financial performance, management team, market prospects, and competitive landscape to determine the optimal debt structure and repayment terms. Additionally, practitioners should ensure that they have a thorough understanding of the EIB Group's investment priorities, such as climate action, digitalisation, and innovation, to align their financing strategies with these objectives.

When implementing supply chain finance solutions, it is essential to establish clear contractual arrangements and risk management frameworks to mitigate potential risks and ensure timely payments. This may involve developing customised payment terms, monitoring cash flow, and maintaining open communication channels with suppliers and buyers. Furthermore, practitioners should stay up-to-date with industry trends and regulatory requirements, such as those related to data protection and cybersecurity, to ensure that their financing solutions remain compliant and effective.

To effectively support working capital in international trade, practitioners should consider the importance of data sharing and collaboration across borders. This may involve developing digital platforms for real-time data exchange, implementing standardised payment protocols, and fostering partnerships with technology providers to enhance supply chain visibility and efficiency. By adopting these strategies, practitioners can help facilitate smoother trade flows, reduce transaction costs, and increase the competitiveness of international businesses.

Source: European Investment Bank