Europe Just Unlocked $21B to Keep Its Startups From Leaving

Jan de Vries · 2026-09-23

Europe has a familiar problem: its startups get big, then get bought. Or they pack up and head to the U.S. for late-stage cash. The European Commission and the European Investment Bank (EIB) Group are trying to change that with a new initiative called the European Institutional Investors Pact (EIIP). It's a voluntary framework designed to funnel more long-term institutional money into Europe's tech and scale-up ecosystem. The pact was unveiled at the TechEU Equity Summit in Luxembourg, and 13 institutional investors have already signaled they're in. ### Where the Money Will Flow The commitments are expected to come through two existing vehicles: - The European Tech Champions Initiative (ETCI) 2.0 — a €15 billion ($16.3 billion) fund - The Scaleup Europe Fund — a €5 billion ($5.4 billion) vehicle Together, that's roughly $21.7 billion aimed at later-stage and growth equity. The 13 investors are targeting large EU-based funds, including ETCI 2.0, the Scaleup Europe Fund, and European Investment Fund-backed vehicles under InvestEU. ### Two Pillars: Policy and Investment The EIIP rests on two complementary pillars: a Policy Dialogue Forum and an Investment Platform. The Policy Dialogue Forum is led by the Commission. It's where institutional investors can engage on regulatory and EU investment policy developments. Think of it as a direct line to policymakers. The Investment Platform, led by the EIB Group, gives investors access to opportunities across Europe's venture capital and growth equity ecosystem. It shares investment pipelines, market intelligence, peer exchange, and ecosystem insights. The platform will be built in close cooperation with EU member states and aligned with existing national initiatives, with an eye to facilitating engagement and providing clearer pathways to exit. ### Why This Matters For years, European startups have struggled to raise late-stage and growth capital. It's been especially tough for companies raising rounds above €100 million (about $109 million). They often have to look outside the bloc to find the money they need. The EIIP aims to fix that by making it easier for pension funds, insurers, banks, and other institutional investors to invest in European venture and growth equity funds. The goal is to help fast-growing companies raise capital without having to leave Europe. Ursula von der Leyen, President of the European Commission, put it this way: "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. 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." Nadia Calviño, President of the EIB Group, added: "Our goal is clear: to provide Europe's institutional investors with a single, credible entry point into innovation financing. In today's world, this partnership between EU institutions and the private sector sends a powerful message of European unity, ambition and determination." Ekaterina Zaharieva, Commissioner for Startups, Research and Innovation, said: "What many companies still lack is access to sufficient late-stage capital. 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." ### The Bottom Line The EIIP is part of the broader EU Startup and Scaleup Strategy. It's a voluntary framework, so it's not a silver bullet. But it's a step toward keeping Europe's best startups from seeking greener pastures elsewhere. If it works, it could mean more European companies scaling up and staying put — and that's good for the continent's economy.