EIB-Led Alliance Lines Up Over €10 Billion to Help European Tech Firms Scale-Ups

EIB Group President Nadia Calviño described the alliance as an important opportunity to turn Europe's technological expertise, innovative businesses and skilled workforce into stronger global competitors.

The European Investment Bank (EIB) Group is bringing European governments and major institutional investors together to channel more than €10 billion in new equity investments towards technology companies seeking to expand internationally. The announcement, made during the Eurogroup and ECOFIN finance ministers' meetings in Brussels, builds on the European Tech Champions Initiative established in 2023 by the EIB Group and six European Union countries. The expanded public-private partnership has set a target of mobilising up to €80 billion in total investments, with average investment amounts of €200 million to support fast-growing European technology businesses.

Major financial institutions working alongside France's Tibi Initiative have expressed intentions to invest more than €8 billion in Europe's technology and innovation ecosystem. The participating investors include ABN AMRO, APG, Banco Santander, BBVA, Danske Bank Group, PGGM and several other banking, insurance and investment organisations. Seven European Union countries, including Bulgaria, Germany, Greece, Italy, Luxembourg, the Netherlands and Spain, are joining the EIB Group for the first closing of the Tech Champions fund-of-funds, bringing approximately €2 billion in commitments.

The first investment approvals under the expanded initiative are expected in the coming weeks, with additional institutional investors and EU Member States likely to participate as their approval processes are completed. EIB Group President Nadia Calviño described the alliance as an important opportunity to turn Europe's technological expertise, innovative businesses and skilled workforce into stronger global competitors. The initiative has already supported 15 major venture capital funds and more than 50 EU-based companies, including 16 businesses that have achieved unicorn status with valuations exceeding €1 billion each.

Expanding Investment Opportunities for European Technology Companies

Europe's technology sector has produced successful innovative companies, but securing large investments for international expansion remains an important challenge for businesses seeking to compete in global markets. The European Tech Champions alliance is designed to complement existing initiatives, including France's Tibi Initiative, Germany's WIN initiative and the European Commission's Scaleup Europe Fund. Greater access to substantial equity financing could help growing companies develop new technologies, expand their operations and remain based in Europe, supporting economic productivity and technological independence.

The expanded European Tech Champions Initiative received unanimous support from all EU Member States in July, establishing a broader foundation for cooperation between governments and private investors. The European Institutional Investors Pact, jointly introduced by the European Commission and the EIB Group, will make investment opportunities more accessible through the EIB Group-led Investment Platform. A Policy Dialogue Forum led by the European Commission will also encourage discussions on regulatory developments, helping institutional investors participate more effectively in financing European technology businesses.

Defence Equity Facility Targets €1 Billion for Security Technologies

The EIB Group is also expanding financial support for Europe's security and defence industries through the Defence Equity Facility 2.0, which brings together funding from the European Commission, EU Member States and the EIB Group. The European Commission has announced a €100 million commitment, adding to confirmed contributions from the EIB Group and countries including Lithuania and Bulgaria. The expanded facility has a fundraising target of €1 billion and is expected to more than double the size of its predecessor, with its first closing anticipated soon.

The original Defence Equity Facility was launched in 2024 under InvestEU with €175 million in funding and is now almost fully invested after helping establish a specialised investment market for European defence and security technologies. The new facility will extend financing opportunities to companies working in defence technology, space and cybersecurity, supporting the development of capabilities considered important for Europe's security and technological independence. European Commissioner for Defence and Space Andrius Kubilius stressed the importance of European investment in advanced defence technologies, pointing to the war in Ukraine as evidence of the growing role of innovation in military capabilities.

A new platform called DEF Exchange will connect public institutions, investors and defence industry participants to strengthen cooperation and identify potential investment opportunities. Supported by the European Cyber Security Organisation and other European services, the platform will bring DEF 2.0 contributors together with venture capital, private equity, private credit and infrastructure fund managers. These connections are expected to help participating organisations identify financing partners, explore co-investment opportunities and strengthen Europe's defence technology investment ecosystem.

EIB Survey Highlights Europe's Growing Strength in Advanced Technologies

The EIB Group's latest Investment Survey, covering approximately 13,000 companies across Europe and the United States, shows that European businesses are keeping pace with American firms in adopting several advanced technologies, including artificial intelligence. The findings indicate similar proportions of European and American companies investing in frontier innovations, including products and services that are new to national or international markets. European manufacturers are also ahead of their American counterparts in adopting certain technologies, including big data, artificial intelligence and advanced robotics.

Europe's security and defence sector has emerged as a particularly active area for investment, with 78% of companies maintaining or increasing spending in response to stronger demand. Businesses operating in this sector are nearly twice as likely to introduce innovative products, with 19% reporting such activity compared with 10% across all surveyed European firms. The EIB Group expects its expanded technology and defence financing initiatives to strengthen Europe's economic resilience, encourage private investment and support progress towards the Savings and Investments Union.