Spain: EIB boosts the expansion of Red Points with €15 million in financing
(Source: European Investment Bank)
- The EIB financing will help the company to consolidate its position as the global technology benchmark for protecting brands online as e-commerce grows exponentially
- The operation is being carried out under the Pan-European Guarantee Fund (EGF)
The European Investment Bank (EIB) has signed the first venture debt operation in Spain under the Pan-European Guarantee Fund (EGF) – part of the €540 billion EU response to the economic impact of COVID-19 – with Spanish startup Red Points. The EIB will provide Red Points with venture debt funding of up to €15 million over five years, financing the research and development of its software technologies and the overall growth of the company on the global market.
Red Points, a female-led software as a service company based in Barcelona, has developed a cloud software platform to combat counterfeiting, piracy, identity theft and fraudulent online distribution. More than 800 large corporates and small and medium-sized enterprises (SMEs) around the world use their platform to protect their brand reputation and increase revenues. The software uses artificial intelligence to automate brand protection on e-commerce platforms, social networks and web pages, helping businesses detect and remove fake products and brand abuse quickly and efficiently. The company, which has around 250 employees and offices in Barcelona, New York, Salt Lake City and Beijing, has developed a strong reputation on the market, serving world-leading brands in electronics, fashion, sport, the automotive sector and entertainment.
This financing will help Red Points to expand its global presence, accelerated after the start of the COVID-19 pandemic due to increased e-commerce and cybercrime, and to continue to develop leading technology in online brand protection.
EIB Vice-President Ricardo Mourinho Félix, who is responsible for the EU bank’s operations in Spain, said: “We are continuing to work on economic measures to counteract the economic effects of the pandemic. This new agreement with Red Points will promote the growth of a Spanish software company, facilitating the mobilisation of investments in the technology and artificial intelligence sectors and fostering innovation and digitalisation, which are key elements of a quick economic recovery.”
CEO and Chairperson of Red Points Laura Urquizu commented: “This new milestone in our financing strategy contributes to extending our double-digit growth, accelerating our innovation and protecting brands and consumers across the world. We are delighted that a European institution such as the EIB can assist us with our growth strategy.”
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy objectives.
The European Guarantee Fund (EGF) was set up by the EIB Group with contributions from Spain and other EU Member States to shield companies suffering from the COVID-19 crisis. Using nearly €25 billion in guarantees, the EGF allows the EIB and the EIF to quickly make loans, guarantees, asset-backed securities, equity and other financial instruments available to mostly small and medium-sized enterprises and mid-caps. The EGF is part of the European Union’s recovery package aiming to provide a total of €540 billion to boost those parts of the EU economy that have been hit the worst.
The Red Points brand protection technology solution is used by more companies worldwide than any other. Its platform enables brands to fight counterfeiting, piracy, identity theft, resale of credentials and fraudulent online distribution, thereby improving their reputation and increasing their revenues.
With over 800 clients and offices in New York, Barcelona, Beijing and Salt Lake City, Red Points has transformed an industry traditionally led by service providers with a scalable and efficient solution.