EIB grants €20 million venture debt loan to Xnext for improving food safety

The EIB’s backing will also enable the Milan-based start-up to expand its market presence, create jobs and contribute to Italy’s economic development and innovation.

The main goals of the €20 million venture debt loan the European Investment Bank (EIB) has granted to Xnext are improving food safety and supporting innovation and environmental sustainability. Xnext, an Italian start-up, has patented a next generation X-ray inspection system aimed at reducing food contamination and waste of produce and resources.

The Bank's investment is supported by the European Commission's InvestEU programme under the Venture Debt window, which provides venture capital to strengthen the competitiveness and growth of European small and medium-sized enterprises..

With the EIB’s venture debt financing, Xnext will be able to advance its research, development and innovation activities, taking the company’s revolutionary technology to a global audience. Backed by Neva, Banca Intesa’s venture capital arm, Xnext has developed state-of-the-art technology for quality control in the food processing sector, with further applications in the textile and pharmaceutical industries. Xnext’s technology offers superior detection of low-density foreign bodies, reducing the risk of product recalls and limiting the environmental impact caused by the waste of resources.

The EIB’s backing will also enable the Milan-based start-up to expand its market presence, create jobs and contribute to Italy’s economic development and innovation. According to the EIB’s estimates, the loan should help create some 70 highly specialised jobs in Italy.

“Xnext’s commitment to quality control is fully aligned with the EIB’s remit to reduce waste and environmental impacts. This operation is a concrete example of the EIB's commitment to promoting revolutionary technology that benefits both society and the environment,” said EIB Vice-President Gelsomina Vigliotti.

“With financing from the EIB, we will be able to continue along our technological innovation path and maintain the technical competitive edge we currently have over competitors with XSpectra. We’ll also be able to broaden our product catalogue, designing next-generation inspection systems for applications in both the food and pharmaceutical sectors,” added Xnext CEO Bruno Garavelli.

The EIB’s venture debt programme provides support for innovative companies

The EIB offers a long-term venture debt product to address the unique funding needs of fast-growing innovative companies. Established in 2016, the EIB’s venture debt programme has so far invested around €6 billion in supporting more than 250 firms. A number of Italian companies have benefited from this financial product, including Blubrake, Diadem, D-Orbit, MotorK, and IRBM.

The venture debt financing structure includes bullet repayment and remuneration linked to the equity risk of the investees and complements existing venture capital financing.