European Investment Fund (EIF) is preparing to deploy one of the most ambitious capital programmes Europe has seen, a €15 billion fund of funds aimed squarely at growth-stage ventures.
The strategy is to strengthen the capital layer that helps startups scale, not just start. EIF plans to support around 100 funds, spanning mid-sized vehicles targeting €300 million to €600 million and mega funds of €1 billion or more. The first close is expected by the summer.
The initiative builds on the European Tech Champions Initiative (ETCI), first launched in February 2023 to tackle what EIF describes as a structural funding gap between Europe and the US. That gap is estimated at roughly €70 billion, a shortfall that has often pushed Europe’s most promising startups to seek capital elsewhere.
The first ETCI raised €3.9 billion and backed 14 funds exceeding €1 billion, including firms like Atomico, Headline and Eurazeo. But ETCI 2 represents a step change. The ambition is no longer to test the model, but to scale it across the continent.
Casting a wider net across Europe’s capital landscape
One of the defining shifts in ETCI 2 is its broader reach, both geographically and financially. While the first programme relied on backing from the European Investment Bank and five EU member states, including Spain, Germany, France, Italy and Belgium, the new version aims to involve as many member states as possible.
The approach reflects a practical reality. Countries like Germany and France already have the ecosystem to support mega funds. Others are still building that pipeline. By including mid-sized funds, EIF is widening access to growth capital across less mature markets.
Funding sources are also expanding. Beyond public institutions, ETCI 2 is actively courting insurers, pension funds and commercial banks. So far, EIF and EIB have committed €1.25 billion to kickstart the effort.
A multiplier effect designed to unlock €80B
What makes this programme particularly powerful is its ripple effect. EIF expects the €15 billion fund of funds to unlock up to €80 billion in scale-up capital across Europe.
The cheque sizes reflect this ambition. ETCI 2 will invest up to €200 million per fund, a sharp increase from the €60 million average seen in its predecessor. That larger commitment allows funds to operate with greater firepower at critical growth stages.
The initiative will also work alongside the European Commission’s planned €5 billion Scaleup Europe Fund, which focuses on direct investments into deeptech companies. Rather than competing, the two are designed to reinforce each other, with ETCI potentially backing funds that invest in opportunities created by the Scaleup programme.
Early results from ETCI 1 offer a glimpse of what’s possible. By February, it had indirectly supported 40 companies, including 11 unicorns such as DeepL, TravelPerk and Framer.
With ETCI 2, Europe is building the financial infrastructure to scale its own champions.
