This week, the EU and the European Investment Bank (EIB) committed €3.75B towards the financing of promising European tech companies. The fund, called the European Tech Champions Initiative (ETCI), will “support the birth and growth of new European unicorns,” or companies valued at $1 billion, said Werner Hoyer (president of the EIB). ETCI will be managed by the European Investment Bank, and is funded by 5 EU states along with the EIB. 

• Germany, France, and Spain have each contributed 1 billion euros
• Italy contributed 150 million euros
• Belgium contributed 100 million euros
• The European Investment Bank contributed 500 million euros

The fund’s main purpose is to address a common problem among promising European startups, which is ensuring sufficient capital to scale up their operations and compete globally. When confronted with this issue, many companies choose to relocate overseas to the U.S, where investments are easier to secure. As a result, the EU loses competent businesses and talent. 

Therefore, ETCI seeks to boost Europe’s technological sovereignty and global competitiveness, cementing it as a future hub of innovation.