The European Ivestment Bank, EIB, and Clavister signed a EUR 20 million financing agreement in 2017. The agreement will help the company to develop advanced cybersecurity software and hire new computer experts. The loan is split in several parts, and in November 2018 Clavister had EUR 5 million of the all in all EUR 20 million.
The agreement was made possible by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe, launched by the EIB Group and the European Commission to boost the competitiveness of the European economy.
Digitalisation creates new opportunities for the way public institutions and businesses work, interact and communicate. But it also brings new risks: while ransomware attacks have increased by 300% since 2015, the economic impact of cybercrime rose fivefold from 2013 to 2017. 87% of Europeans regard cybercrime as an important challenge to the EU’s internal security.
Clavister’s products protect networks from hacker attacks and other digital security threats. The company is one of only three in Europe that feature in the top 20 cybersecurity businesses worldwide and successfully compete in a US-dominated market. In particular, the financing will support Clavister’s growth ambitions. Investing in further product development and innovation are focus areas for staying at the forefront of technology. In addition, the company will substantially expand its sales and marketing presence to successfully take the products to market.
“Securing network and information systems in the EU is essential to keep the online economy running and to ensure prosperity”, said EIB Vice-President Alexander Stubb, responsible for EIB operations in Northern European countries. “I’m proud of our support to innovative companies such as Clavister, as this deal will help foster digital know-how and skilled employment in Europe and make our digital lives safer.”
“We’re extremely pleased to have the EIB as our financing partner to help us attain our main corporate objectives of increased market share and customer satisfaction. The commitment shows not only an investment in our company, but one that grows the field of European cybersecurity in terms of importance and global competitiveness”, stated John Vestberg, President and CEO of Clavister.
The deal with Clavister is special in that it makes use of the new EIB venture debt product, which combines the advantages of a long-term loan with a remuneration model based on the company’s performance. Any such transaction helps to strengthen the borrower’s economic capital. The Investment Plan for Europe allows the EIB to step up investment in highly innovative companies that previously would not have been eligible for EIB financing.