New €15B EIB Fund Aims to Scale European Tech Startups
The European Investment Bank's new fund of funds provides significant growth capital for European scale-ups through 100 partners.
Updated on Oct. 15, 2026 in Startups
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The European Investment Bank launched the European Tech Champions Initiative 2 in summer 2026, aiming to channel capital into European tech scale-ups. This €15 billion fund of funds leverages institutional and private investment to provide growth capital for companies across industries including artificial intelligence and deep tech.
Why it matters
The initiative addresses the liquidity gap for European growth-stage companies by mobilizing private capital to fund large rounds within the region. By distributing funds to over 100 growth managers, the program seeks to provide the scale needed to build local unicorns rather than relying on external venture capital.
The initiative aims for a €15 billion target size, significantly larger than the €3.9 billion raised for the first fund in 2023. The program plans to reach over 100 growth funds, with an expected average investment of €200 million per company.
The players
European Investment Bank
The lending arm of the European Union that provides financing for projects to achieve EU policy goals.
Banco Santander
A global commercial bank providing private investment capital for European tech initiatives.
The details
The program functions as a fund of funds, deploying capital into more than 100 growth funds rather than investing directly in startups. It utilizes a dedicated platform to allow insurers, family offices, and banks to participate in European tech financing. Eligible companies are those in strategic sectors like life sciences, security, space, and fintech that require significant late-stage funding.
Timeline
2022: The initiative was first announced.
2023: The first European Tech Champions Initiative fund launched.
Summer 2026: The European Investment Bank announced the launch of ETCI 2.
End of 2026: The first formal close of the fund is expected.
Market Landscape
This initiative follows the pattern set by the first European Tech Champions Initiative launched in 2023. That predecessor fund invested in 15 mega-funds and served as a catalyst for the creation of 12 European Union-based unicorns.
Growth-stage founders should track the 100 partner funds that will eventually receive this capital, as these managers will dictate the deployment terms for scale-ups. Operators in sectors like deep tech and AI should monitor their investors' affiliation with these growth funds to gauge future funding eligibility.
The takeaway
This initiative signals a shift toward institutionalizing late-stage funding for European tech. Founders should monitor the first formal close expected by the end of 2026 as a bellwether for liquidity availability in the growth-stage market.
What happens next
The fund expects its first formal close by the end of 2026.
Further reading
For broader trends in regional venture capital and growth funding, see our coverage of Startups.
Source note: This article includes information reported by Trending Topics.
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