France, alongside Germany and Spain, has vowed to put €1 billion into the fund of funds. Le Maire believes more money for start-ups is the solution. He highlighted a competitive tech industry as a key to Europe’s ambition to create a green economy and counter the impact of the US’ $738 billion green tech spending package, the Inflation Reduction Act. We don’t want our best companies to continue to develop outside Europe.” “We need to catch up with the US and China. “It’s vital these tech companies stay in the EU,” said French finance minister Bruno Le Maire, one of the leaders of the initiative. The new fund will contribute to the effort. To counter the threat, the European Commission last year set out to mobilise €45 billion from private investors to help deep tech start-ups scale up, in commissioner Mariya Gabriel’s European Innovation Agenda. For Europe, this means loss of its industry and talent – and a threat to its technology sovereignty. Many move to the US, where investment is easier to secure. Today, Europe’s start-ups struggle to find sufficient capital to scale up their operations and compete on the global stage. On the drawing board for over a year, this is Europe’s latest attempt to help its companies compete on a global scale, building on the Pan-European Scale Up Initiative, which France spearheaded last year when it held the presidency of the EU council. The hope is that an initial €1 billion of funding will leverage €10 billion of investment in European scale-ups. The fund will invest public money, provided by the EIB and five EU member states, in venture capital funds that will support late-stage growth phase companies. The European Tech Champions Initiative (ETCI) will “support the birth and growth of new European unicorns,” or companies valued at $1 billion or more, said Werner Hoyer, president of the European Investment Bank (EIB), at the launch on Monday night. The EU this week launched a €3.75 billion fund of funds to inject much-needed capital into Europe’s most promising tech companies.
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