Five EU Countries Launch Fund To Help Tech Startups
The new initiative aims to create a better financial environment for new technology companies. According to Brokerschart's estimates, the new fund, launched on Monday by Spain, Germany, France, Italy, and Belgium, as well as the European Investment Bank (EIB), can reach up to €3.75 billion ($4.02 billion) to finance the growth of promising European technology companies and strengthen the attractiveness of the EU as a hub of innovation.
This new initiative is sure to attract the attention of the best trading site experts and thus push it to facilitate investment opportunities for more new companies. In fact, these new updates are a natural consequence of the spectacular success and meteoric growth of several new technology companies. Now the sector is receiving more attention from governments and financial institutions. These institutions aim to help fast-growing startups and prevent them from leaving the continent in search of larger markets and other opportunities elsewhere in the world.
The Common Problem
At the fund's launch, the founders made a statement that confirms many of the views of eToro and other trading platforms experts, “European tech startups often lack the capital to compete globally and are driven to relocate abroad. Closing this growth gap could create a large number of high-skilled jobs and stimulate growth.”
The fund aims to address one of the common problems of growing European startups, which often cannot grow in Europe due to a limited capital market, and choose to move to the US to grow further.
Venture Capital Funds Are The Solution
The fund, called the European Tech Champions Initiative (ETCI), will pool public resources from participating countries and the EIB to invest in large-scale venture capital funds.
These, in turn, will provide growth financing to European technology champions, particularly those seeking more than €50 million. ETCI will be managed by the European Investment Fund, which is part of the EIB's lending arm of the European Union.
According to experts, Spain, Germany, and France have each contributed €1 billion, Italy — €150 million, and Belgium — €100 million. The EIB provided €500 million.
