Fazua to Receive €12 Million Loan from EIB

Fazua, located near Munich in Ottobrunn, received good news recently as a €12 million loan was announced by the European Investment Bank (EIB). Developing drivetrain systems, the company has enjoyed success in recent times and the loan has been agreed as part of the Juncker Plan, the well-advertised Investment Plan for Europe.

Once everything has been signed, it will become a long-term venture debt product. With the announcement, the EIB said that ‘this product addresses the unique funding needs of fast-growing innovative companies.’ As an important part of the Investment Plan for Europe, the loan will be guaranteed by the EFSI (European Fund for Strategic Investments). The EFSI was launched by the European Commission and EIB in order to help the European economy with growth and competitiveness.

Help for Fazua

How will Fazua use the money? According to the company themselves, it will go towards research and development as well as general expansion. As mentioned previously, they have enjoyed brilliant times of late and the story began, incredibly, back in 2017 when they had just 12 employees. Soon enough, they made an impact with a compact and lightweight mid motor. Once they paired this with increased production in their home market of Germany, they received the attention they deserved from the media.

Today, they have 85 employees and 2018 saw them move to Ottobrunn from a small office in Munich; their new location once housed an EADS rocket science team. From humble beginnings, Fazua now works within the e-urban, e-mountain bike, and e-gravel markets with no less than 35 manufacturers across the continent. When it comes to e-racing, Fazua is now considered a leader in the market.

Rewarding Innovative SMEs

Vice-President of the EIB, Ambroise Fayolle, said ‘With our higher-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. 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.’

Meanwhile, Valdis Dombrovskis, Vice-President of the European Commission, noted that ‘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.’