BRUSSELS (XOL Africa) — The European Commission and European Investment Bank Group on Tuesday launched a voluntary framework aimed at encouraging institutional investors to put more long-term capital into Europe’s technology and scale-up companies.
The European Institutional Investors Pact, or EIIP, was unveiled at the TechEU Equity Summit and already has the backing of 13 institutional investors that have expressed an intention to invest in Europe’s innovation and scale-up ecosystem.
The initiative is designed to channel investment through vehicles including the €15 billion European Tech Champions Initiative 2.0 and the €5 billion Scaleup Europe Fund, as well as other funds supporting later-stage European technology companies.
“Talent, ideas and ambition – Europe has all of these. Now we are making sure our innovative companies can grow, scale and lead on the global stage – from Europe,” European Commission President Ursula von der Leyen said. “By bringing together public and private partners, the goal is to unlock long-term capital for our technology. This is about turning European innovation into European industrial and economic strength.”
The pact was developed jointly by the Commission and the EIB Group under the EU Startup and Scaleup Strategy. It seeks to address a persistent funding challenge for European companies that have moved beyond the startup stage but need larger pools of capital to expand internationally.
The framework has two main components: a policy dialogue forum led by the European Commission and an investment platform led by the EIB Group.
The policy forum will provide institutional investors with opportunities to discuss regulatory developments and EU investment policies. The EIB-led investment platform will provide access to investment opportunities across Europe’s venture capital and growth-equity markets through investment pipelines, market intelligence, peer exchanges and information about the wider investment ecosystem.
The platform is also expected to work with EU member states and align with national initiatives, with the aim of creating investment pathways that can support companies through their growth and eventual exits.
“Our goal is clear: to provide Europe’s institutional investors with a single, credible entry point into innovation financing,” EIB Group President Nadia Calviño said. “In today’s world, this partnership between EU institutions and the private sector sends a powerful message of European unity, ambition and determination.”
The 13 institutional investors that have expressed an intention to join the pact are expected to focus on large EU-based funds investing in later-stage and growth equity for European technology companies.
Potential investment channels include ETCI 2.0, the Scaleup Europe Fund and European Investment Fund-backed funds supported through InvestEU, along with other strategies targeting the scale-up phase of venture and growth capital.
“Europe has the talent, the research base and the entrepreneurial ambition to lead in strategic technologies. What many companies still lack is access to sufficient late-stage capital,” said Ekaterina Zaharieva, the European commissioner for startups, research and innovation.
“With the European Institutional Investors Pact, we are helping connect Europe’s deep pools of long-term capital with its most promising innovators so they can scale up and stay in Europe,” Zaharieva said.
Karl Nehammer, vice president of the EIB, said the initiative could help deepen Europe’s venture and growth-capital markets.
“Leading investors recognise both the need and the opportunity to strengthen Europe’s innovation financing ecosystem and support companies as they grow,” Nehammer said. “Through the EIIP, investors, the European Commission, the EIB Group and Member States can work together within a common framework to help develop deeper venture and growth capital markets across Europe.”
Marjut Falkstedt, chief executive of the European Investment Fund, said the initial participation demonstrated growing interest from institutional investors in European technology financing.
“This first milestone demonstrates growing momentum among institutional investors and reflects the strong complementarity between the EIB Group and the European Commission in mobilising capital for Europe’s future tech champions,” Falkstedt said.
The Scaleup Europe Fund is a pan-European late-stage and growth fund targeting €5 billion in commitments. Managed by EQT and backed by the European Commission and European institutional investors, it targets companies working in strategic technology areas including artificial intelligence, quantum technologies, semiconductors, robotics and autonomous systems, energy, space, biotechnology, medical technologies, advanced materials and agricultural technology.
The fund is intended to help address what EU institutions describe as Europe’s growth-financing gap by mobilising long-term capital for companies seeking to expand globally while maintaining their base in Europe.
The initiative is part of a wider EU effort to mobilise institutional capital from banks, pension funds, insurance companies and other long-term investors for technology and innovation.
The European Tech Champions Initiative, launched in 2023 by the EIB Group and six EU member states, has backed 15 large funds and 47 scale-ups, including 15 companies valued at more than $1 billion, according to the EIB.
Building on that initiative, ETCI 2.0, endorsed by all 27 EU member states, aims to mobilise up to €80 billion through a pan-European alliance of institutional investors.
The EIB Group, the European Union’s financing arm, signed €100 billion in new financing and advisory services in 2025 for more than 870 projects. Its activities include financing for digitalisation and technological innovation, climate action, security and defense, infrastructure and other EU priorities.
The European Investment Fund, an EIB Group subsidiary, specialises in guarantees, securitisation and equity financing for small and medium-sized businesses and startups. It also acts as an anchor investor in venture capital funds and helps mobilise private investment for innovative European companies.
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