European Commission Mobilizes Multi-Billion Fund To Support European Scaleups
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The European Commission mobilised top-tier private investors to jointly establish the Scaleup Europe Fund, a new multi-billion-euro fund designed to invest in the most promising European companies in strategic deep tech areas. By uniting with these potential founding investors, the Commission advances the EU Startup and Scaleup Strategy, aiming to foster a dynamic and competitive ecosystem across Europe. This initiative responds to the critical need for increased investment in European scaleups, closing the gap with global leaders and ensuring continued innovation. The fund will focus on growth capital and late-stage investments across key technologies such as artificial intelligence and quantum computing to keep Europe’s best companies thriving at home.
Europe Backs Deep Tech Scaleups With New Fund The European Commission is mobilising a multi-billion-euro fund to bolster Europe’s deep tech scale-ups, signalling a strong commitment to fostering innovation and competitiveness. This initiative, known as the Scaleup Europe Fund, aims to address the critical need for increased investment in European companies operating in strategic technological areas. By uniting with potential founding investors, the Commission is actively implementing the EU Startup and Scaleup Strategy, designed to create a thriving ecosystem across the continent.
The Scaleup Europe Fund will focus on providing growth capital and late-stage investments in a broad range of European technology companies. Key areas of focus include artificial intelligence, quantum technologies, semiconductor technologies, robotics, and autonomous systems. A core group of potential investors, including Novo Holdings, EIFO, CriteriaCaixa, Santander/Mouro Capital, Fondazione Compagnia San Paolo/ Intesa Sanpaolo/Fondazione Cariplo, APG Asset Management acting on behalf of Dutch pension fund ABP, Wallenberg Investments, and BGK, have joined forces with the Commission and the European Investment Bank (EIB) to establish and capitalise the fund. This funding initiative responds to concerns highlighted in the Draghi report, which emphasised the importance of scaling innovative companies for Europe’s overall competitiveness. Despite a robust startup pipeline, limited access to late-stage capital and fragmented investment markets have historically hindered the growth of European innovators. The Commission believes the Scaleup Europe Fund will ensure Europe’s most promising companies have the resources needed to thrive, attract investment, and create high-quality jobs within the continent.
Boosting European Innovation: A Multi-Billion Euro Investment The Scaleup Europe Fund aims to address a critical gap in the European investment landscape, focusing on late-stage growth capital for deep tech companies. According to the Commission, this funding will specifically target companies requiring substantial investment to scale operations and compete globally. This strategic approach recognises that while Europe excels in early-stage innovation, securing financing for expansion remains a significant hurdle for many promising startups. The fund’s structure is designed to de-risk investments and attract a broader range of private capital. Several prominent investors have already committed to establishing the fund, including Novo Holdings, EIFO, and CriteriaCaixa. Building on this initial commitment, Santander/Mouro Capital, Fondazione Compagnia San Paolo/ Intesa Sanpaolo/Fondazione Cariplo, APG Asset Management acting on behalf of Dutch pension fund ABP, and Wallenberg Investments are also participating. These investors, alongside the European Investment Bank (EIB) and BGK, will work collaboratively to capitalise the fund and guide its investment strategy. The collective goal is to unlock the potential of Europe’s flourishing scaleup companies while reinforcing European tech leadership. The fund’s investment focus will encompass a broad range of strategic technologies, including artificial intelligence, quantum technologies, and semiconductor technologies. Robotics, autonomous systems, and other cutting-edge fields will also be prioritised, reflecting the Commission’s commitment to fostering innovation across multiple sectors. This diversified approach aims to build a resilient and competitive European tech ecosystem, capable of driving economic growth and addressing global challenges. The Commission believes this targeted investment will ensure Europe can maintain its position as a global innovation leader. By mobilising substantial investment, the European Commission directly addresses the critical need for late-stage growth capital, a long-identified barrier for European deep tech companies. This coordinated effort, building on the EU Startup and Scaleup Strategy, could enable innovative firms to compete effectively on the global stage. For industries reliant on cutting-edge technologies, the Scaleup Europe Fund represents a significant step toward fostering a more robust and competitive European ecosystem. As highlighted by European Commission President Ursula von der Leyen, ensuring access to resources will be vital for attracting investment and sustaining high-quality jobs across the continent. Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2529 Tags: