Europe's 80B public money bet on VC and scaleups faces structural growth barriers
Briefly

Europe's 80B public money bet on VC and scaleups faces structural growth barriers
"European venture capital investment reached €66.2 billion in 2025, roughly 22% of what was invested in the United States. The disparity is most severe at later stages: EU growth funding amounts to approximately 10% of US volumes."
"European pension and insurance funds account for only 7% of VC investments, compared with roughly 20% in the US. Sovereign wealth funds participate in less than 1% of European VC fundraising."
"The EIF, which already backs about 25% of all venture capital invested in Europe and supports nearly half of all VC-backed startups in a typical year, has been the primary instrument for closing this gap."
The European Investment Fund is raising €15 billion for ETCI 2 to unlock €80 billion in scaleup funding across Europe. Germany's WIN initiative aims for €12 billion by 2030, while France's Tibi programme has pledged €7 billion in private capital. The European Commission's Scaleup Europe Fund is deploying €5 billion, and the European Innovation Council has a €10 billion budget through 2027. Despite these efforts, Europe still lags behind the US in venture capital investment, particularly at later stages, raising concerns about the effectiveness of this funding.
Read at TNW | Eu
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