The European Investment Fund (EIF) has infused over €1 billion into four European growth funds as part of the European Tech Champions Initiative (ETCI), a €3.75 billion fund of funds managed by EIF. The initiative, backed by the European Investment Bank and several European governments, aims to support European scaleups, particularly those raising funds of €1 billion or more in Series B rounds and beyond.
Among the funds benefiting from EIF’s investment are the UK-based Atomico and France’s Keensight. Additionally, Italy’s FSI, a private equity firm raising €1.5 billion for mid-sized Italian companies, has received support. A fourth fund, which remains undisclosed, is on the verge of finalizing a deal.
The move has faced scrutiny within the startup ecosystem, with concerns that the funds might favor private equity firms over traditional venture capitalists. The EIF, however, asserts that both private equity firms and VCs selected by ETCI are well-equipped to nurture the growth of fast-growing European tech companies.
Roger Havenith, EIF’s deputy chief executive, stated, “We will drive innovation, empower entrepreneurs and position the European Union as a hub for technology and growth.” The EIF’s strategic allocation underscores its commitment to fostering innovation and supporting the tech ecosystem across Europe.
