Overview presentation about the Digital Innovation and Scale-up Initiative for Central, Eastern and South Eastern Europe (DISC). This EU initiative has developed a partnership with the World Bank/IFC, European Investment Bank/ European Investment Fund and the EBRD to address this existing investment gap in innovative deep tech companies in the CESEE region. The programs main objectives are to (i) enhance investments; (ii) strengthen technical assistance and (iii) promote an enabling environment focused on digital innovations and digital startups in the CESEE region.

1. EU Digital Innovation and Scale-up Program
(DISC)
Björn-Sören Gigler
Senior Digital Innovation Specialist,
Digital Single Market
DG Connect, European Commission
Bjorn-Soren.Gigler@ext.ec.europa.eu
twitter: bgigler
InnoStart Forum
Brussels
10 July, 2019

2. EU Program: An Overview
Fostering Investments & Technical Assistance & Knowledge Sharing
for strategic future-oriented technologies
• Startup Europe Program
• Digital Innovation and Scale-up Initiative (DISC)
• Digitalisation of traditional SMEs
• EU Blockchain Program
• Innovation Radar
2

3. http://startupeuropeclub.eu/

4. • is an initiative of the European Commission
• encourages entrepreneurship, startup creation and grow notably in Deep
Tech verticals (AI, IOT, HPC, blockchain)
• connects startups, investors, accelerators, entrepreneurs, corporate
networks, universities and the media through an array of networks.
• connects local startup ecosystems around Europe and enhance their
capacity to invest in other markets
• celebrates the European entrepreneurs' success
Startup Europe at a glance

5. EU vs other regions; investment gap
5
Estimates consist of annual VC investment in AI-focused companies, PE investment in AI-related
companies, and M&A done by corporations. Source: Capital IQ; Pitchbook; Deallogic; S&P;
McKinsey Global Institute
“Overall Europe is behind in
private investments in
Artificial Intelligence”
AI strategy for Europe*
* COM(2018)/237

6. CESEE countries score lower in
digitalisation readiness
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Advanced EU Cohesion
Basic Adopting Active Innovator
CESEE vs EU innovation profiles
Smartness of the Regions
Basic firms do not invest in R&D and do not innovate; Adopting firms do
not invest in R&D, but adopt innovation. Active innovators are investing
in R&D and innovating
Source: (1) EIBIS and (2) EIB (2018) Smart Cities, Smart Investment in CESEE

7. CESEE countries score lower in
digitalisation readiness

8. The Challenge: Investment Gap in CESEE
The Venture Capital investment in CEE InnovFin support across EU

9. Digital Innovation and Scale-up Initiative (DISC)
• Joint initiative between (i) European Commission (ii) European
Investment Bank (iii) European Investment Fund (iv) European
Bank for Development & Reconstruction v) World Bank and vi)
International Finance Corporation
• Launched during the Digital Assembly, Bucharest, June 14, 2019
• with Governments of Croatia, Finland, Germany and Romania
9

10. Digital Innovation and Scale-up Initiative (DISC)
An investment program to foster digital innovations and startups
• Dedicated Investment program to support the scale-up of digital
innovations and startups in CESEE countries;
• Investment support program to increase visibility; enhance
investment readiness; facilitate match-making and support the
portfolio development of innovative projects;
• Technical assistance program to strengthen institutional capacity of
government to design, develop and implement digital innovation
projects;
• Enabling Digital Transformation: to foster the enabling
environment for innovation and entrepreneurship (cross-border
digital infrastructure and digital skills).
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11. DISC: Value-Added
_______________
Investment Facility
● leveraged financing
● targeted to CESEE
● for deep tech startups
● for smaller and higher
risk projects
Investment Gap
_________________
Investment Support
Program
● connect innovators with
finance
● enhance visibility for
digital champions
● link digital innovation
ecosystems
Knowledge Gap
_________________
One-stop Shop for
Technical Assistance
● strengthen public
sector administrative
capacity
● improve investment
readiness of tech
companies
● support digital
ecosystems
Capacity Gap

12. DISC Objectives
Close the Investment Gap:
• Enhance investments in future-oriented, strategic
technologies
• Improve finance for scale-up of risky, highly innovative
digital startups
• Increased investments in digital enabling environment
• Accelerate regional Innovation Ecosystem
Close the Knowledge Gap:
• Reduce information asymmetry between demand and
supply of finance
• Improved access to financial and non-financial resources
• Better connect innovators with investors
Close the Capacity Gap:
• Strengthen project implementation capacity (public & private sector)
• Reduce brain drain and loss of IP
• Accelerate growth of locally-owned digital innovations
• Strengthen Portfolio Development of bankable projects

13. DISC- Components
_______________
● Pooled funding
● Shared risk
● Scale-up startups (€2-
15M ticket sizes)
● Strengthen enabling
environment for
digital innovations
Investment
Facility
_______________
● Awareness-raising
● Community-building
● Match-making
● Portfolio development
● Investment portal
Investment
Support Program
________________
● Capacity-building for
public sector
● Advisory services to
deep tech startups
● Strengthen
regulatory frameworks
Technical
Assistance
Enabling Environment for Digital Transformation

14. Road Map and Next Steps
Mar – Startup Europe Summit - Investment roundtable I
Jun – Digital Assembly – Investment roundtable II
Sep – In-depth Market Assessment
Nov – Slush Helsinki – Investment forum
March-Dec: Pilot Program
May – Digital Assembly: Results of Market Assessment
July – Startup Europe Summit
Investment roundtable
Jan— DISC investment facility operational
March—Technical assistance program operational
Jan-Dec— Investments in Digital Enabling Environments
2019
2020
2021

15. Background information
Launch of the Digital Innovation and Scale-up Initiative: Press
Release
https://ec.europa.eu/digital-single-market/en/news/launch-digital-innovation-and-scale-initiative-central-eastern-and-south-eastern-europe
News Story and Agenda of Launch event
https://ec.europa.eu/digital-single-market/en/news/launch-digital-innovation-and-scale-initiative-disc
Digital Assembly 2019: Multi-media coverage
https://www.youtube.com/watch?v=aRxIM20CzH4

16. Thank-you