The European Commission and the European Investment Bank Group have introduced the European Institutional Investors Pact, a voluntary framework designed to direct long-term institutional capital into Europe’s technology and scale-up ecosystem. Announced during the TechEU Equity Summit in Luxembourg, the initiative has already attracted expressions of intent from thirteen institutional investors. The pact forms part of the EU Startup and Scaleup Strategy and seeks to close the region’s persistent late-stage financing gap.
A Response to Europe’s Funding Gap
European startups have long struggled to secure late-stage and growth capital, particularly for rounds above €100 million. Many promising companies have been forced to seek funding outside the bloc to continue expanding. The new pact is designed to reverse this trend by making it easier for pension funds, insurers, banks and other institutional investors to support European innovation.
Initial commitments are expected to flow largely through two existing vehicles: the €15 billion European Tech Champions Initiative 2.0 and the €5 billion Scaleup Europe Fund. Both instruments target the later-stage financing needs of European technology companies. By connecting institutional capital with these large EU-based funds, the pact aims to strengthen the entire venture and growth equity ecosystem.
Two Complementary Pillars
The EIIP rests on a Policy Dialogue Forum led by the European Commission and an Investment Platform led by the EIB Group. The Policy Dialogue Forum will allow institutional investors to engage with regulatory and EU investment policy developments. The Investment Platform will provide access to investment pipelines, market intelligence, peer exchange and ecosystem insights across Europe’s venture capital and growth equity markets.
The Investment Platform will be developed in close cooperation with EU member states and aligned with relevant national initiatives. It is intended to provide clearer pathways to exit and to facilitate engagement for institutional investors. This structure allows public and private partners to work within a common framework to deepen Europe’s capital markets.
Leadership Backing and Strategic Intent
European Commission President Ursula von der Leyen said Europe has the talent, ideas and ambition needed to compete globally, and the pact will help unlock long-term capital for technology. EIB Group President Nadia Calviño described the initiative as a single credible entry point into innovation financing. She added that the partnership sends a powerful message of European unity, ambition and determination.
Startups Commissioner Ekaterina Zaharieva stressed that access to sufficient late-stage capital remains a key missing element for many companies. EIB Vice-President Karl Nehammer noted that leading investors recognise both the need and the opportunity to strengthen Europe’s innovation financing ecosystem. European Investment Fund Chief Executive Marjut Falkstedt said the first milestone demonstrates growing momentum among institutional investors.
Building on Existing European Funds
The European Tech Champions Initiative has already backed fifteen mega-funds and forty-seven scale-ups, including fifteen unicorns, since its launch in 2023. Building on that success, ETCI 2.0 has been endorsed by the twenty-seven EU member states and aims to mobilise up to €80 billion through a pan-European alliance of institutional investors. The Scaleup Europe Fund targets €5 billion in commitments and invests directly in strategic technology areas such as artificial intelligence, quantum technologies, semiconductors, robotics, space technologies and biotechnologies.
A Broader Push for Competitiveness
The pact forms part of a wider EU effort to unlock institutional capital from banks, pension funds and insurance companies for technology and innovation. It addresses a key funding challenge identified in Europe’s competitiveness agenda. By reinforcing venture and growth capital markets, the initiative aims to help European companies scale globally while remaining rooted in Europe.
The launch of the European Institutional Investors Pact marks a coordinated attempt by EU institutions and private investors to strengthen Europe’s innovation financing landscape. With early expressions of intent from thirteen investors and significant existing fund commitments, the initiative provides a credible foundation for deeper capital markets. Success will depend on translating this initial interest into long-term investment activity that supports European technology companies at every stage of growth.