European Investment Bank financing helps ensure that firms like Jennewein can grow in Europe, rather than taking their innovations to the United States for support and development.
Summary sheet
Jennewein is a highly innovative German biotechnology food company focused on novel production processes for the synthesis of human milk oligosaccharides (functional nutritive sugars) for a wide range of applications, including nutritional, pharmaceutical and cosmetic products.
The project will cover research and development (R&D) costs, both operational expenditure (OPEX) and capital expenditure (CAPEX) related to the up-scaling of the production of the human milk oligosaccharides, clinical trials for the new products and related R&D activities.
The project mainly concerns investments in R&D that are expected to be carried out in existing facilities already authorised for the same purpose and would therefore not require an environmental impact assessment (EIA) under the Directive 2011/92/EU. Full environmental details will be verified during the appraisal.
The promoter is a private company, not operating in the utilities sector and does not have the status of a contracting authority; thus the project is not subject to the EU directives on procurement.
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).
Documents
News & Stories
Inside the project
How and Why
A breakthrough technology
Why
- Multinationals had tried to figure out how to manufacture oligosaccharides at a price low enough to make mass production feasible. Jennewein actually did it
- To build a R&D centre to expand human milk oligosaccharides product portfolio and increase production capacity
- Fill a market gap as commercial banks are reluctant to invest in an early-stage company in a new and innovative market.
How
- Financing in the form of venture debt with equity-like remuneration
- Because it’s not an actual equity investment, Jennewein’s founders and early investors retain their stake in the company, instead of diluting it.
Sectors & Countries
This is an excellent example of the type of firm we can advance in Europe, and the key is providing the right financing ecosystem.
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