LUXEMBOURG, October 7 (Reuters) – The European Investment Bank (EIB) has put forward a plan to reinforce Europe’s venture capital and private equity markets, aiming to help innovative start-up companies thrive within the continent. The proposal, presented to finance ministers during a meeting in Luxembourg, is part of the EU’s broader effort to develop its capital markets and make the region a more appealing location for start-ups. Many are currently drawn to the United States, where securing financing is often easier.
The EIB announced in a statement its intention to support the scaling up of European “unicorns”—companies with unique ideas and significant growth potential—by expanding the European Tech Champions Initiative. This fund of funds, launched last year, provides late-stage capital to European innovators.
Owned by the EU’s 27 member governments, the EIB also plans to increase equity and venture debt investments. Furthermore, the bank intends to create a new fund dedicated to financing acquisitions and the listing of tech start-ups by European firms.
“We’re talking about ensuring that European companies, technologies that are born in Europe, stay in Europe, and that we invest in Europe’s champions, in Europe’s unicorns, that we reinforce Europe’s competitiveness through a stronger capital market,” stated EIB President Nadia Calvino.
The funding strategy is also designed to strengthen Europe’s position against competition from China and the United States in the field of new, climate-friendly technologies. The EU needs these technologies to achieve its ambitious climate goals of net-zero CO2 emissions by 2050.
“There’s unanimous agreement at the technical level on the need to deepen Europe’s capital markets and to reinforce the integration of our capital markets,” Calvino added. “This will reinforce Europe’s competitiveness and fund European successful companies. There is also political momentum right now.”
