EIB moves to beef up scale-up financing

A pitch by the European Investment Bank to increase investments in European scale-ups has been well-received by EU finance ministers. The EIB proposed measures to channel private savings into financing the scale-up of European unicorns, including through an extension of the European Tech Champions Initiative ‘fund of funds.’ Scaling up equity and venture debt investments and setting up a new dedicated fund, an ‘exit platform’ for financing acquisitions and listing of tech start-ups, are also key components of the plan.

Capital market fragmentation has been singled out as a key impediment to European competitiveness by both Enrico Letta and Mario Draghi in their flagship reports on European competitiveness. “The EIB Group is itself already a capital markets union instrument. The action plan discussed with ministers will help European innovators scale up their businesses and contribute to channeling savings into productive investments, boost innovation, create jobs and lead Europe toward a more robust growth model, ensuring that European companies born in Europe stay in Europe,” said EIB Group President Nadia Calviño.