EU plans new fund to help tech companies scale

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The fund seeks to counter a “clear funding hole” that European firms expertise when scaling dangerous, capital-intensive applied sciences that want investments above €100 million.

The shortage of scale-up capital “poses a number of dangers for the EU,” such because the lack of firms and significant applied sciences domestically, in keeping with the plan.

“A European scale-up with important mass, working at market situations, is required to fill this hole and strengthen the EU's financial safety and tech sovereignty,” it reads.

The draft — which incorporates extra particulars on the fund than a model reported beforehand by POLITICO — reveals the Fee is upping its efforts to put money into the bloc’s highest potential firms.

The fund would permit the Fee and traders to take a direct stake in firms working in strategic sectors similar to synthetic intelligence, quantum know-how, clear tech, semiconductors, superior supplies and biotech.

<img decoding="async" width="1024" height="683" src="https://www.politico.eu/wp-content/uploads/2025/05/23/13063326-1024x683.jpg" alt="" class="wp-image-6658032" srcset="https://www.politico.eu/cdn-cgi/image/width=1024,quality=80,onerror=redirect,format=auto/wp-content/uploads/2025/05/23/13063326.jpg 1024w, https://www.politico.eu/cdn-cgi/image/width=300,quality=80,onerror=redirect,format=auto/wp-content/uploads/2025/05/23/13063326.jpg 300w" sizes="(max-width: 1024px) 100vw, 1024px"/> The European Fee plans to make use of EU funds to purchase stakes in synthetic intelligence and quantum firms searching for to scale because it continues a bid to counter U.S. dominance. | Ritchie Tongo/EPA