European Investment Bank Launches Tech Champions Fund
The European Tech Champions Initiative 2 aims to raise €15 billion to support scaling companies across the European Union.
Updated on Oct. 15, 2026 in Startups
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In summer 2026, the European Investment Bank announced the launch of the European Tech Champions Initiative 2. This fund of funds has a target size of €15 billion and is backed by all 27 European Union member states to support the growth of tech scale-ups.
Why it matters
The initiative aims to mobilize private capital for European tech funds to finance large growth rounds within the region. By supporting over 100 growth funds, the program seeks to keep high-potential tech companies in Europe rather than seeing them rely solely on foreign investment.
The initiative targets a fund size of €15 billion with up to €1.25 billion contributed by the European Investment Bank. This effort aims to channel a total of €80 billion into 1,500 tech scale-ups through more than 100 dedicated growth funds.
The players
European Investment Bank
This is the lending arm of the European Union that provides financing and expertise for sustainable investment projects.
Banco Santander
This is a major Spanish multinational financial services company that serves as one of the private investors in the initiative.
The details
The program functions as a fund of funds, allocating capital to growth funds that then invest in startups across sectors like artificial intelligence, deep tech, and space. Private investors including Banco Santander, BBVA, and Danske Bank join institutional support to facilitate investments expected to average €200 million per company.
Timeline
The initiative was first announced in 2022.
The first European Tech Champions Initiative fund launched in 2023.
The European Investment Bank announced the launch of ETCI 2 in summer 2026.
The first formal close of the fund is expected by the end of 2026.
Market Landscape
The European Tech Champions Initiative 2 follows the precedent set by the original 2023 fund by expanding its capital capacity for European startups. This move signals a push to consolidate the region's venture capital ecosystem to better compete with global technology markets.
While the fund does not invest in startups directly, it provides a stable pipeline of capital for European tech companies seeking large growth rounds. This availability of funding may improve access to capital for firms in sectors like fintech and clean tech as they look to scale operations.
The takeaway
The second iteration of this investment vehicle demonstrates a regional commitment to scaling internal tech capabilities rather than outsourcing to foreign markets. Startups in the EU-based tech sectors should prepare for a landscape where growth capital is increasingly centralized through this multi-state initiative.
What happens next
The first formal close of the European Tech Champions Initiative 2 fund is expected to occur by the end of 2026.
Further reading
Learn more about the evolving landscape of European ventures in the Startups section.
Source note: This article includes information reported by Trending Topics.
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