EU and EIB launch launch institutional investor pact to tackle Europe’s scale-up funding gap

The European Commission and the European Investment Bank (EIB) have introduced the European Institutional Investors Pact (EIIP), a voluntary framework designed to funnel more long-term institutional capital into Europe's tech and scale-up sectors. The pact, unveiled at the TechEU Equity Summit in Luxembourg, has already attracted 13 institutional investors who plan to invest in Europe's innovation economy.

These commitments are primarily expected through two existing funds: the €15 billion European Tech Champions Initiative (ETCI) 2.0 and the €5 billion Scaleup Europe Fund. Ursula von der Leyen, President of the European Commission, emphasized the importance of scaling European innovation to compete on a global level, stating that the EU will leverage public and private partnerships to unlock long-term capital for its technology.

The EIIP operates through two complementary components: a Policy Dialogue Forum, led by the Commission, and an Investment Platform, led by the EIB Group. The Policy Dialogue Forum offers institutional investors a platform to discuss regulatory and EU investment policy changes, while the Investment Platform provides access to venture capital and growth equity opportunities across Europe.

This platform, built in collaboration with EU member states, aims to simplify investments for pension funds, insurers, banks, and other institutional investors, enabling them to support European venture and growth equity funds. The initiative seeks to address the persistent challenge of late-stage and growth capital for European startups, with many companies still lacking access to sufficient late-stage financing.

Nadia Calviño, President of the EIB Group, highlighted the importance of providing a single, credible entry point for institutional investors in innovation financing, underscoring the commitment to European unity, ambition, and determination.