Europe boasts a wealth of talent, world-class researchers and skilled entrepreneurs but many new firms do not make it beyond the critical first few years because they cannot get the finance to scale up into global businesses.
Venture capital is vital to a well-functioning Capital Markets Union, but remains underdeveloped in Europe.
In 2016, venture capitalists invested about €6.5 billion in the EU compared to €39.4 billion in the US.
The Juncker Commission wants to give Europe's many innovative start-ups every opportunity to become world-leading companies while remaining in the EU.
This is the reason why the European Commission and the European Investment Fund have launched today a Pan-European Venture Capital Funds-of-Funds programme (VentureEU) to boost investment in innovative start-up and scale-up companies across Europe.
Concretely, the Commission and the European Investment Fund announced six participating funds to receive EU support in their mission to invest in the European venture capital market.
Backed by EU funding to the tune of €410 million, the funds are aiming to raise up to €2.1 billion of public and private investment.
In turn this is expected to trigger an estimated €6.5 billion of new investment in innovative start-up and scale-up companies across Europe, doubling the amount of venture capital currently available in Europe.
VentureEU will provide new sources of financing, giving European innovators the opportunity to grow into world-leading companies.
Around 1,500 start-ups and scale-ups are expected to gain access across the whole EU.
Source: EU Commission News