The European Investment Bank (EIB) Group is bringing public and private capital together to turn Europe’s technological strength into global leadership, with major institutional investors joining EU member states to channel more than €10 billion in new equity investments into European scale-ups.
The milestone, announced in the margins of the Eurogroup and ECOFIN meetings of finance ministers in Brussels, builds on the European Tech Champions Initiative, launched in 2023 by the EIB Group and six EU member states. With the backing of EU governments and a growing number of institutional investors the new public-private alliance aims to mobilise up to €80 billion in total investments, with average investment tickets of €200 million to help European tech companies scale up globally.
The French Tibi Initiative, as well as ABN AMRO, Algemene Pensioen Groep (APG), Armònia SGR S.p.A., Azimut Holding, Banco Santander, BBVA, Compagnia di San Paolo, Danske Bank Group, Green Arrow Capital, Grupo Mutua Madrileña, Marsh, Mn Services N.V., PGGM and Uniqa Insurance Group have declared the intention to channel a combined total of more than €8 billion into Europe’s innovation and scale-up ecosystem, with additional investors expected to join the alliance soon.
Seven Member States – Bulgaria, Germany, Greece, Italy, Luxembourg, the Netherlands and Spain – are teaming up with the EIB Group for the first closing of the Tech Champions fund-of-funds, with around €2 billion in commitments, paving the way for the first investment approvals in the coming weeks.
“Europe has world-class talent, innovative companies and technological leadership. The European Tech Champions alliance is a catalyst to mobilise capital at scale to turn Europe’s most promising companies into global leaders,” said EIB Group President Nadia Calviño.
To date, the European Tech Champions Initiative has backed 15 venture capital megafunds investing in fast-growing innovative companies. It has supported more than 50 EU-based companies, of which 16 have reached unicorn status, each valued at more than €1 billion.
The expanded initiative received unanimous backing from all EU Member States in July. More Member States are expected to contribute to the Tech Champions fund-of-funds once their national procedures are complete.
The alliance will complement national and European initiatives, such as Tibi, Germany’s WIN initiative and the European Commission’s Scaleup Europe Fund. Together, they will help tech pioneers access large-scale funding to grow and remain anchored in Europe, supporting productivity, growth, and strategic autonomy.
The European Institutional Investors Pact, jointly launched by the European Commission and the EIB Group, simplifies access for institutional investors to fund investment opportunities through the EIB Group-led Investment Platform and facilitates dialogue on regulatory developments through a Policy Dialogue Forum led by the European Commission.
Scaling the Defence Equity Facility
In parallel, the EIB Group, EU Member States and the European Commission are pooling resources to expand investment in security and defence through the Defence Equity Facility.
The Commission’s €100 million commitment, announced today, adds to confirmed commitments from the EIB Group and several member states. The facility is anticipated to double the size of its first iteration, with the first closing expected soon.
“The Commission is pleased to commit to the Defence Equity Facility 2.0. This initiative builds on our efforts to enable Europe’s defence tech companies count on European capital to grow, scale, and deliver the critical capabilities our Armed Forces needs,” said Andrius Kubilius, European Commissioner for Defence and Space. “The war of aggression against Ukraine demonstrates that new technologies are key to success on the battlefield. Investing in new technologies means investing in our superiority, our technological sovereignty and our security – investing in Europe’s defence readiness.”
DEF 2.0 builds on the €175 million Defence Equity Facility launched in 2024 under InvestEU. The pilot facility is now almost fully invested and has helped establish a specialised European investment ecosystem for defence and security, largely from scratch, in just two years. With a €1 billion fundraising target, DEF 2.0 will expand investment in defence technologies, space and cybersecurity. Several Member States are expected to join in the coming months.
DEF 2.0 will also connect participants in Europe’s defence investment ecosystem through the new DEF Exchange. Events exclusively for DEF 2.0 contributors will bring together national stakeholders, investors and defence industry players. Supported by the European Cyber Security Organisation (ECSO) and other European services, the platform will match public stakeholders with venture capital, private equity, private credit and infrastructure fund managers, providing access to investment opportunities, co-investment partners and networks.
Investment Survey shows resilience and momentum
The two initiatives are expected to strengthen Europe’s economic resilience and support progress towards the Savings and Investments Union. The annual Investment Survey released today by the EIB Group shows that EU firms’ adoption of many new technologies, such as artificial intelligence (AI), matches US levels.
The findings point to a resilient European economy and underscore the importance of supporting scale-ups and accelerating the adoption of successful technologies across a broad range of businesses.
Based on a sample of 13,000 companies polled in Europe and the US, the survey also shows that the EU and the US have similar shares of firms investing in frontier innovation – products and services that are new to national and global markets. European manufacturers lead their US counterparts in adopting technologies in some critical areas, including big data, AI and advanced robotics.
Security and defence is emerging as one of the most dynamic sectors, with 78% of European firms in the sector maintaining or increasing investment in response to stronger demand. These firms are more positive about future prospects than those in other sectors and nearly twice as likely to bring innovative products to market: 19%, compared with 10% of all firms.
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