European Investment Bank (EIB) Group (European Investment Bank and European Investment Fund) announced on Monday, February 13, that it has signed the European Tech Champions Initiative (ETCI) mandate with Spain, Germany, France, Italy, and Belgium.
ETCI is a fund of funds that will back high-tech companies in their late-stage growth phase.
“This initiative is a striking example of what we can achieve collectively to strengthen the EU’s economic and industrial sovereignty,” says Bruno Le Maire, French Minister of the Economy, Finance, and Industrial and Digital Sovereignty.
Managed by the European Investment Fund, ETCI has secured commitments from Spain (€1B), Germany (€1B), France (€1B), Italy (€150M), and Belgium (€100M) during the initial subscription period.
“This initiative will provide the most innovative startups with the capital they need to scale and lead the global entrepreneurial ecosystem,” says Nadia Calviño, Vice President of the Government of Spain and Minister for the Economy and Digital Transformation.
The EIB Group has deployed an additional €500M, bringing the total to €3.75B. However, the size of the fund is expected to grow further with future commitments, says EIB.
“Offering support to Europe’s innovative firms in their late-stage development, when they want to scale up their business, is essential for safeguarding the EU’s strategic autonomy,” says EIB Group President Werner Hoyer.
ETCI: Plug financing gaps
With this fund, ETCI aims to deepen Europe’s scale-up VC market by bridging gaps in financing availability, especially for companies seeking to raise over €50M.
ETCI was unveiled in February 2022 in Paris during a summit organised under the French Presidency of the Council of the EU.
“Innovative businesses need to be able to find the equity capital they need right here in Europe,” says Marjut Falkstedt, Chief Executive of the EIF. “As manager of the ETCI, we will be using our scale and expertise to nurture a sustainable late-stage growth ecosystem capable of supporting homegrown innovation.”
ETCI will pool public resources from participating Member States and the EIB Group to make significant investments into large-scale Venture Capital funds, providing growth financing to European tech champions.
“Europe is already home to world-class companies and industries with access to solid technical and financial infrastructures. To enable future European tech champions to play an equally significant international role and to boost Europe’s global competitiveness, we need to go one step further,” says Christian Lindner, Germany’s Federal Minister of Finance.
He adds, “With the European Tech Champions Initiative, we are now filling a gap in the financing landscape and strengthening Europe’s strategic autonomy.”
“We share this initiative in which Europe works in synergy to mobilise public and private capital to support the growth of future champions of digital innovation,” said Giancarlo Giorgetti, Minister of Economy and Finance of the Italian Republic.
“We hope that Italy, which has always been one of EIF’s main partners, will be able to draw from this project the right impulse for the development of this business sector,” he adds.
“Belgium welcomes the pan-European investment strategy implemented by the European Investment Fund and is delighted to be able to contribute to new developments in the technology scene,” says Belgium’s Finance Minister Vincent Van Peteghem.
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