EIB and seven EU states pool 10 billion euros for European tech scale-ups

A 10 billion euro package

The European Investment Bank (EIB) group, seven EU member states and private investors are pooling more than 10 billion euros for promising European technology companies, the bank announced on Monday, 9 November. Most of the money, about 8 billion euros, comes from private institutional investors and the French Tibi initiative, including banks, insurers, pension funds and investment companies. The public share is smaller. Germany contributes 250 million euros, and Bulgaria, Greece, Italy, Luxembourg, the Netherlands and Spain together with Germany commit around 2 billion euros in total. The EIB is based in Luxembourg, describes itself as the world's largest public development bank, and is owned by its member states.

Private institutional investors and Tibi initiative8

Seven member states combined2

Private institutional investors and Tibi initiative

8 billion euros

Seven member states combined

2 billion euros

Data from the article text

Backing scale-ups

The money is meant mainly for scale-ups, young technology companies that are already established on the market and want to grow fast and expand. According to the EIB, firms from several technology fields can benefit. The bank's vice-president, Nicola Beer, argued that investing in European tech firms can pay off economically while strengthening the bloc's competitiveness.

“Anyone who invests in Europe's technology companies can profit economically and at the same time strengthen Europe's competitiveness.”

In an interview with RP Online, Beer said Europe must mobilise more private capital for innovative companies and that this cannot be achieved with state funds alone. She added that Europe already has excellent research and innovative firms, and that European investors should share more in the economic success that follows.

Political reaction in Germany

Finance Minister Lars Klingbeil (SPD) welcomed the initiative and called the private investment pledges a strong signal. He said the funding would make investments in defence, space and cybersecurity possible and would help secure jobs in future industries. Klingbeil stressed Germany's own share of the package.

“I am pleased that Germany is making a contribution of 250 million euros to this important initiative.”

Federal Economy Minister Katherina Reiche (CDU) said Europe produces outstanding technology companies and must give them the chance to grow large there. She framed the alliance as a response to a decisive phase of growth for these firms.

“With the new European investment alliance we are strengthening financing in a decisive growth phase.”

Tech Champions, defence and the second phase

EIB president Nadia Calviño, speaking as she arrived at a meeting of EU economy and finance ministers in Brussels, said the second phase of the Tech Champions initiative aims to mobilise 15 billion euros in capital for innovative companies. She added that the first phase has already passed 10 billion euros. So far the initiative has backed 15 mega-funds that invest in fast-growing companies, supported more than 50 companies, and helped 16 EU-based companies reach unicorn status, meaning a valuation above one billion euros. The first investments are to be approved in the coming weeks. Alongside the company investments, the EIB group plans with member states and the European Commission to step up spending on defence, with the Commission providing 100 million euros on top of funds already pledged for defence technology, space and cybersecurity.

Long-term ambition

The alliance begins with more than 10 billion euros, and the EIB says it aims to mobilise up to 80 billion euros over time for more than 1,500 European technology companies. The initial package is meant to draw in private capital, with the long-term target reaching far beyond the public commitments made so far. The chart compares the starting package with that goal.

Initial package (more than 10)10

Long-term target (up to 80)80

Initial package (more than 10)

10 billion euros

Long-term target (up to 80)

80 billion euros

Data from the article text

The EIB's role is to support investments that contribute to the political objectives of the EU, which is why the bank has framed this alliance around competitiveness and growth.