Europe expands tech scaleup funding with ETCI 2.0
ETCI 2.0 will expand the European Tech Champions Initiative to support mega-funds and mid-sized growth funds.
The European Investment Bank (EIB) Group, EU governments and private institutional investors have launched the second phase of the European Tech Champions Initiative (ETCI), aiming to mobilise up to €80 billion for Europe’s technology scaleups.
Known as ETCI 2.0, the initiative aims to strengthen Europe’s late-stage investment ecosystem by creating a pan-European platform that helps highly innovative companies scale into global technology leaders. The announcement was made in Brussels on the sidelines of the ECOFIN meeting of EU finance ministers.
The first phase, launched in 2023, backed 15 mega-funds investing in European startups and contributed to the emergence of 12 EU-based unicorns. ETCI 2.0 will expand both the size and scope of the initiative with continued backing from EU governments and new participation from private institutional investors.
The new initiative aims to raise up to €15 billion, around four times the size of the original fund of funds, and is expected to mobilise as much as €80 billion in investment for more than 1,500 European scaleups.
The EIB Group plans to invest up to €1.25 billion into the fund. Final contributions from participating governments and investors are expected to be determined in the second half of 2026 during the initiative’s first closing.
For the first time, ETCI 2.0 will support both European mega-funds and mid-sized growth funds managing more than €300 million in assets. The initiative is expected to anchor more than 100 funds, including up to 45 mega-funds making average investments of around €200 million per company.
Private investors joining the initiative include AltamarCAM, Azimut Holding, Banco Santander, BBVA, Compagnia di San Paolo, Danske Bank and Green Arrow Capital, with more investors expected to join later.
The initiative will also establish a pan-European investment platform providing investors with access to European technology funds, market intelligence and ecosystem insights, supported by a dedicated digital engagement tool.
ETCI 2.0 is designed to complement national and European initiatives, including France’s Tibi initiative, Germany’s WIN initiative and the Scaleup Europe Fund. The EIB said the aim is to build a more federated European investment ecosystem and help European tech companies remain anchored in Europe.
Why does it matter?
Europe has long struggled to provide sufficient late-stage financing for high-growth technology companies, with many scaleups seeking capital from US investors or relocating abroad as they expand. ETCI 2.0 is designed to address that gap by combining public and private investment to strengthen Europe’s own growth capital ecosystem.
The initiative also reflects the EU’s broader push for technological sovereignty and economic competitiveness. By helping innovative companies remain headquartered and financed in Europe, ETCI 2.0 aims to retain strategic technologies, talent and intellectual property while building globally competitive European firms.
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