EIB: Europe's Leaders Plan an €80bn (US$91.63bn) Tech Fund

The European Investment Bank Group is preparing to mobilise up to €80bn (US$91.6bn) in capital for tech startups across the continent. The second phase of the European Tech Champions Initiative could help companies avoid relocating to the US by providing late-stage funding at home.

According to EIB, the scheme operates as a fund of funds structure. All 27 EU governments and major private investors are participating in what the institution calls ETCI 2.0.

The approach differs from writing direct cheques to individual companies. Instead, the initiative will anchor more than 100 investment funds that deploy capital to scaleups.

The first iteration of ETCI supported 15 funds and helped develop 12 unicorns. A unicorn describes a privately held startup valued at more than US$1bn. The original programme demonstrated that coordinated public-private investment could create material outcomes for European tech firms seeking growth capital.

Leadership vision for capital deployment

Nadia Calviño, Group President of EIB, outlined the rationale during the Brussels launch event. "The partnership is all about scale and speed, powering European pioneers with the capital they need to grow," she says.

"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," Nadia says.

Simon Harris, Finance Minister for the Government of Ireland, described the institutional investor involvement as essential. "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," he says.

"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," Simon says.

The ministerial backing demonstrates growing anxiety among European policymakers about the continent's ability to retain high-growth companies. Many scaleups have historically relocated to access deeper capital markets in the United States.

Fund structure and investment mechanics

The ETCI 2.0 target fundraising size stands at up to €15bn (US$17.2bn). According to EIB, this figure represents roughly four times the scale of the 2023 predecessor programme.

EIB Group will directly invest up to €1.25bn (US$1.4bn) into the core funding vehicle. That capital will then be used to attract and mobilise the full €80bn total investment across more than 1,500 scaleups.

The initiative will anchor more than 100 investment funds for capital distribution. For the first time, mid-sized growth funds will be included to support companies at earlier scaling stages.

Up to 45 mega-funds will write late-stage cheques averaging €200m (US$229m) per company. According to EIB, these cheques provide the capital tech firms need to compete globally without seeking US backing. The mega-fund component addresses a specific gap in European venture markets where late-stage rounds have traditionally been smaller than US equivalents.

Platform infrastructure and private backing

A pan-European investment platform will connect the various funding streams. The platform uses a newly developed digital tool that provides market intelligence and ecosystem insights to private investors.

According to EIB, the platform will act as a structured route into Europe's most promising growth-stage tech companies. The tool gives investors direct access to pipeline data and fund performance metrics.

Private sector participants include Danske Bank, Banco Santander, BBVA and AltamarCAM. Italian asset managers Azimut Holding and Green Arrow Capital have also committed capital to the initiative.

The programme aims to channel equity investments directly into highly innovative tech scaleups across the continent.