The European Investment Bank has proposed plans to address funding shortages and retain innovative start-ups in Europe. The initiative, presented by finance ministers at a meeting in Luxembourg, is part of the EU's broader effort to develop its capital markets and be attractive for innovative start-ups that now often relocate to the United States where finding financing is easier. 

The EIB said in a statement that it would finance the scale up of European unicorns -- companies with unique ideas and growth potential -- by expanding the European Tech Champions Initiative. This fund of funds, launched last year, provides late-stage capital to European innovators. 

On top of this, the EIB, which is owned by the EU's 27 governments, offered to boost equity and venture debt investments and create a new dedicated fund for financing acquisitions and listing of tech start-ups by European firms. 

Shared by EIB president Nadia Calvino: "We're talking about ensuring that European companies, technologies that are born in Europe, stay in Europe, and that we invest in Europe's champions, in Europe's unicorns, that we reinforce Europe's competitiveness through a stronger capital market”. 

This funding strategy is also designed to help Europe remain competitive with the U.S. and China, particularly in climate-friendly technologies essential for achieving the EU’s goal of net-zero CO2 emissions by 2050.

"There's unanimous agreement at the technical level on the need to deepen Europe's capital markets and to reinforce the integration of our capital markets," Calvino said. "This will reinforce Europe's competitiveness and fund European successful companies. There is also political momentum right now”. 

Stay tuned to receive updates on developments in EU funding opportunities in tech.