EIF launches €15B fund of funds to unlock €80B for European scaleups
The European Investment Fund is launching the second iteration of its European Tech Champions Initiative (ETCI 2), a €15B fund of funds targeting growth-stage investors across Europe
The programme aims to back around 100 VC funds — both mid-sized vehicles targeting €300M–€600M and mega funds of €1B or more — with a first close expected by summer 2026.
The EIF and European Investment Bank have already committed €1.25B to anchor the initiative.
Europe has a chronic problem: it grows startups but struggles to scale them. The EIF estimates a €70B funding gap between Europe and the US at the growth stage — the point where many promising companies have historically had to look abroad for capital.
ETCI 2 is also a direct response to political urgency. The EIB Group's board endorsed the initiative, framing it as central to European sovereignty and competitiveness at a moment when AI, defence, and deeptech are reshaping global power.
The €15B target is an ambition, not a guarantee. ETCI 2 relies heavily on private institutional investors such as insurers, pension funds, and commercial banks — whose commitments are not yet secured.
The fund also faces a structural challenge: not all EU markets are equally ready. Several member states lack the pipeline of growth-stage companies needed to absorb large fund commitments, hence the expanded criteria to include smaller funds.
ETCI 2 is the biggest fund-of-funds ever launched in Europe dedicated solely to scaleup capital. If it hits its targets, it could unlock up to €80B in growth-stage investment — a figure that would meaningfully close the gap with the US.
The first ETCI backed 14 funds and helped create 11 unicorns, including DeepL, Perk, and Framer. The second aims to go much further, broadening participation across more member states and asset classes, and will complement the European Commission's planned €5B Scaleup Europe Fund.
Together, these moves signal a shift: Europe is no longer just trying to create startups — it is building the financial infrastructure to keep them.
Sources:
European Investment Bank Group
Tech Funding News
Sifted
J.V.
