Fazua closes new financing round
EUR 15 million growth financing for e-bike drive system company FAZUA
Munich, Germany, October 8th, 2019 – Fazuas shareholders and The European Investment Bank (EIB) are providing EUR 15 million to the rapidly growing e-bike company Fazua GmbH. EUR 12 million of these funds are being made available through the EU bank’s Venture Debt Product, a type of risk capital for innovative companies. The loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI). EFSI is a core component of the Investment Plan for Europe (IPE) – also known as the Juncker Plan – under which the EIB and the European Commission are working together as strategic partners to boost the competitiveness of the European economy. Fazua GmbH, which is based in Munich, intends to use the funds for the expansion of the company and for research and development activities.
Established in 2013, the startup business manufactures super-lightweight e-bike drive systems, which fit, including the motor and battery, in the down tubes of bicycles. With its lightweight drive systems, Fazua is closing the gap between traditional e-bike drives and conventional, non-motorised bicycles. Since entering the market, Fazua has built up a customer base that now includes more than 35 European manufacturers offering bicycles in the e-mountain bike, e-urban, e-gravel and e-racing bike segments, where Fazua has a leading market position.
Benjamin Erhart, Partner with Lead Investor UVC Partners: “With its consistent and profitable growth since our first investment in 2017, we are proud to double down on FAZUA as it increases its footprint in the bn EUR and fast-growing E-Bike market.”
EIB Vice-President responsible for operations in Germany and EFSI 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.” He added: „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.“
European Commission Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “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. Fazua’s ongoing success translates into more jobs and sustained growth for the local economy, which is the core focus of the Juncker Commission.”
Fazua’s CEO Fabian Reuter also welcomed the financing agreement: “The capital provided by the EIB is the ideal financing instrument for us in our current business phase. In addition to the “evation” drive system, which has already been very successfully launched on the market, we can now invest even more in the expansion of our product range.” He also stressed the importance of the production and development site in Ottobrunn near Munich. “It is crucial for us to maintain our successful business model with the highest quality standards, production under our own roof in Germany and reliable partners, most of whom also come from Europe,“ said Reuter.
About UVC Partners:
Unternehmertum Venture Capital Partners (UVC Partners) is a Munich- and Berlin-based early-stage venture capital firm that invests in technology-based startups in the areas of enterprise software, industrial technologies and mobility. The fund typically invests between € 0.5-3m initially and up to € 12m in total per company. UVC Partners has about € 118m in assets under management.
Portfolio companies benefit from the extensive investment and exit experience of the management team as well as from the close cooperation with UnternehmerTUM, Europe’s leading innovation and business creation center. With over 200 employees and an international network of more than 1,000 industrial companies, UnternehmerTUM can draw from many years of experience in establishing young companies. This cooperation enables UVC Partners to offer startups unique access to talent, industry customers, and other financial partners.