February 27, 2023
A 3.75 billion euro ($4.02 billion) fund was launched by Spain, Germany, France, Italy, and Belgium along with the European Investment Bank to support the expansion of promising European technology firms and increase the EU’s appeal as a center of innovation.
The fund aims to address one of the issues faced by successful European start-ups, which frequently choose to relocate to the United States in order to develop because Europe lacks a better functioning capital market.
“Tech start-ups in Europe are frequently forced to move abroad because they lack the financial resources to compete on a global scale. Closing this scale-up gap could boost development and generate a large number of highly skilled jobs “In a statement, the fund’s founders stated.
The European Tech Champions Initiative (ETCI) fund, which will invest in significant venture capital funds, will pool public money from participating nations and the EIB.
These will then give European tech leaders growth financing, particularly to those looking for more than 50 million euros. The European Investment Fund, a division of the European Union’s EIB lending agency, will be in charge of managing the ETCI.
A total of 1 billion euros were donated by Spain, Germany, France, 150 million euros by Italy, and 100 million euros by Belgium. Euro Investment Bank gave 500 million.
According to the statement, “the size of the fund is anticipated to grow further with future commitments.”
Source: Reuters
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