A “trusted investor network” made up of schemes ready to co-invest with the European Union in innovative high-tech companies in Europe that have high growth potential but face financing problems, the European Commission has launched.
The European Commission is joining forces with venture capital to support European innovation in cutting-edge technology in order to close the competitiveness gap that Europe presents, highlighted the Commissioner for Innovation, Research, Culture, Education and Youth, Iliana, in her interview in Athens Ivanova, in the presence of Deputy Minister of Development and Investment Zois Rapti,
These are European investments that come from the European Innovation Council (EIC) Fund, within the scope of the EU research and innovation program “Horizon Europe”.
The first group is made up of 71 investors from across Europe, including venture capital firms, public investment banks, foundations and corporate venture funds. These investors represent assets in excess of 90 billion euros, highlighting the network in an important capital leveraging initiative to advance cutting-edge technology.
The participants committed to implementing a “network map of trusted investors”, with shared values for building companies in Europe and for co-investment with the European Innovation Council Fund. The two sides will accelerate investment initiatives and exchange best practices for their implementation.
The creation of the network responds to the need to increase financing for these companies to grow in Europe and lays the foundations for further growth in 2025, in line with the political guidelines of the next Commission.
The network also highlights the growing importance of the European Innovation Council Fund, which has already invested almost one billion euros in 251 of the most promising start-ups companies in Europe.
Co-investments of more than 4 billion euros from around a thousand investors
The Fund in question attracted co-investments of more than 4 billion euros from around a thousand investors, with a leverage of more than 4 euros for every 1 euro invested. The “trusted investor network” is expected to further strengthen these co-investments and provide companies operating in critical technology areas with access to the major investments they need to compete globally.
The inauguration took place in the context of the first “EIC Scaling Summit”, in which 120 companies participated for the first time, selected from ESK’s portfolio and national programs and with the potential to expand and become global champions in their areas.
Target the “unicorns”
The 72 of these companies today add to the 48 members already registered in the EIC Scaling Club. EIC provides personalized support to EIC Scaling Club members, with the aim that 20% of them expand and emerge as unicorns, that is, companies worth more than one billion euros. Collectively, these member companies have raised over €73 million to date, with further rounds of funding expected soon.
Today’s initiative continues the preparations made by Commissioner Ivanova who, in February and June, invited a group of investors to discuss this new form of cooperation. The letter signed today and the launch of the network are the tangible result of these consultations.
The network is open to other like-minded investors, who can contact the ESK Fund team through a special electronic box.
It should be noted that the ESK Fund was created by the Commission to invest in selected companies through the ESK Accelerator program. It is supported by the European Investment Bank, which acts as the Fund’s sole investment advisor, and is managed by an alternative investment fund manager. The Fund aims to support more than 500 companies during the current period 2021-27.