Europe’s Latest Initiative Will Mobilise $94 Billion For Tech Scaleups

The European Investment Bank (EIB) and the governments of all 27 European Union member states have launched the second phase of a technology investment initiative aimed at mobilising up to 80 billion euros ($94 billion) for high-growth European technology companies.

The new programme, known as the European Tech Champions Initiative (ETCI) 2.0, will expand a fund-of-funds launched in 2023 that invests in venture capital and growth equity funds backing European startups and scaleups.

The EIB said the initiative would seek to raise up to 15 billion euros, around four times the size of its predecessor, with the potential to mobilise as much as 80 billion euros in investment for more than 1,500 European technology companies.

The first phase of the initiative has supported 15 large investment funds and helped finance 12 European startups that have since reached valuations of more than $1 billion, the bank said.

“The partnership launched today is all about scale and speed, powering European pioneers with the capital they need to grow,” EIB Group President Nadia Calviño said. “This is a decisive step to address the funding gap for scale ups, making sure that ideas, technologies and innovative firms born in Europe can stay and thrive in Europe.”

The initiative was announced in Brussels on the sidelines of a meeting of EU finance ministers.

Ireland’s Finance Minister Simon Harris, whose country currently holds the rotating presidency of the Council of the European Union, said the expanded programme would help address Europe’s shortage of late-stage financing.

“Ireland supports the launch of the European Tech Champions Initiative 2.0, which marks an important step in closing Europe’s scale-up financing gap. The inclusion of mid-sized funds to ensure scale-up needs at all stages can be met and the involvement of institutional investors to mobilise private capital at scale are crucial developments, further aligning the initiative with Europe’s competitiveness agenda,” Harris said.

Unlike the original programme, ETCI 2.0 will invest not only in large venture capital funds but also in mid-sized growth funds with assets exceeding 300 million euros. The EIB expects the programme to support the creation of more than 100 investment funds, including up to 45 large funds that would typically invest around 200 million euros in individual companies.

The EIB said it would invest up to 1.25 billion euros in the initiative. The final size of the fund will be determined later this year after participating governments and institutional investors complete their funding commitments.

Private investors backing the programme include Spain’s AltamarCAM, Banco Santander and BBVA, Italy’s Azimut Holding, Green Arrow Capital and Compagnia di San Paolo, and Denmark’s Danske Bank, with additional investors expected to join later.

The initiative will also establish a pan-European investment platform designed to connect institutional investors with European technology funds and improve access to market information, with the aim of increasing the availability of late-stage capital for European startups.

The EIB said the programme would complement existing national initiatives, including France’s Tibi initiative, Germany’s WIN programme and the Scaleup Europe Fund, while supporting the EU’s broader effort to deepen capital markets and strengthen the bloc’s technological competitiveness.

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