EU to Acquire Shares in Start-Up Companies for the First Time

The European Union will become a shareholder in startups for the first time through one of its biggest investment funds. The European Innovation Council Fund, the size of which is expected to be around 3 billion euros, will be an important fund for breakthrough technologies to better compete with the U.S. and Asia.

The fund will include grants and equity stakes to finance start-up companies in “deep tech”, such as health, sustainability and advanced manufacturing. Ownership will vary between 10% and 25%, and ticket sizes can be as much as 15 million euros.

EU officials think the funding will reduce the risk for the investments and attract other investors by the direct financing of breakthrough companies.

The EU currently invests into tech companies via grants from the European Commission and the European Investment Fund, through venture capital firms. The new move will allow EU to bypass venture capital firms to boost early stage firms.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Get your daily Business Brief

Subscribe free to Business Brief

Business Brief delivers the latest insights straight to your inbox

You'll get daily industry insights on

Energy, Cleantech, Oil & Gas, Mining, Defense, Aviation, Construction, Transportation, Online Retail, Bigtech, Finance and Politics of Business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Sustainable Finance Could Grow Further After EU-China Co-Study

After the EU and China’s standardization study on global sustainable finance market, it is expected that the already expanding sector will see even bigger growth. The current global sustainable finance market is estimated to worth more than $35 trillion.   

Germany Bets Big on Green Hydrogen Platform

Germany will allocate 900 million euros of funding for a green hydrogen project, German Ministry of Economy announced on Thursday, as the country’s new government seeks to accelerate decarbonization. 

Senate Democrats Agreed on New EV Tax Credits

Democrats in the U.S. Senate agreed to a deal for a new $4,000 tax credit for used electric vehicles (EVs) as well as other tax credits and grants for automakers to retool factories and produce zero emission cars. The agreement signed between Senate Majority Leader Schumer and Senator Manchin also includes expanding the existing $7,500 EV tax credit and a new $10 billion investment tax credit to build clean-technology manufacturing facilities.

error: This content is protected !!