EU and EIB launch new pact to draw institutional investors into tech scale-ups

The European Commission and the European Investment Bank (EIB) Group have officially launched the European Institutional Investors Pact (EIIP), a new voluntary framework designed to channel more long-term institutional capital into Europe's technology and scale-up ecosystem. The initiative was unveiled at the TechEU Equity Summit in Luxembourg, where thirteen institutional investors already indicated their intention to invest in Europe's innovation economy.

Most of the resulting commitments are expected to flow through two existing vehicles: the €15 billion European Tech Champions Initiative (ETCI) 2.0 and the €5 billion Scaleup Europe Fund.

European Commission President Ursula von der Leyen said Europe already has the talent, ideas and ambition, and that the goal now is to ensure innovative companies can grow and lead globally while remaining based in Europe.

Two pillars

The EIIP was jointly developed with the EIB Group as part of the EU Startup and Scaleup Strategy, and rests on two complementary pillars. A Policy Dialogue Forum, led by the Commission, lets institutional investors engage on regulatory and EU investment policy matters. An Investment Platform, led by the EIB Group, gives investors access to opportunities across Europe's venture capital and growth equity ecosystem, sharing investment pipelines, market intelligence and peer exchange. The platform will be built in cooperation with EU member states and aligned with existing national initiatives.

EIB Group President Nadia Calviño said the goal is to give Europe's institutional investors a single, credible entry point into innovation financing.

A persistent late-stage funding gap

For years, Europe's startup ecosystem has struggled to raise late-stage and growth capital, a challenge that has been particularly acute for companies seeking rounds above €100 million. Through the EIIP, the Commission and the EIB aim to close this funding gap and strengthen Europe's competitiveness in innovation.

Ekaterina Zaharieva, Commissioner for Startups, Research and Innovation, said many companies still lack access to sufficient late-stage capital, and that the pact will help connect Europe's deep pools of long-term capital with its most promising innovators so they can scale up while staying in Europe.