The European Commission is preparing to launch a new investment fund aimed at addressing a significant financing gap faced by European companies as they attempt to scale high-risk, capital-intensive technologies requiring over €100 million in investment.
According to a draft of the proposal, this shortfall in scale-up funding creates serious challenges for the EU, including the potential loss of innovative companies and key technologies to competitors outside the bloc. To prevent this, the proposal emphasizes the need for a large-scale European initiative operating under market conditions to safeguard the EU’s economic resilience and technological independence.
“The EU needs a European-scale fund with critical mass that can operate according to market terms to bridge this financing gap and ensure the bloc’s tech sovereignty,” the draft states.
The document provides new details beyond earlier reports, indicating a growing commitment by the Commission to support the bloc’s most promising tech ventures. Under the proposed plan, the fund would enable the Commission and private investors to directly acquire stakes in companies operating within strategic sectors such as artificial intelligence, quantum computing, clean technologies, semiconductors, advanced materials, and biotechnology.
This plan expands upon the work already being done by the European Innovation Council, which has previously invested in early-stage startups but lacked the capacity to support large-scale growth efforts.
Overall, the initiative reflects the EU’s broader strategy to compete with global powers like the United States by strengthening its technological base and ensuring future economic competitiveness.
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