Key Points
- The EU has launched the “Trusted Investors Network” to boost European tech innovation and investment.
- The initiative involves 71 venture capital investors managing over 90 billion euros ($98 billion) in assets.
- The goal is to support European deep-tech companies, particularly in AI and quantum computing.
- The U.S. has seen a rise in venture capital funding, especially in AI, while Europe is working to close the investment gap.
On Monday, the European Union (EU) announced the creation of the “Trusted Investors Network,” a collaborative initiative with leading European venture capital firms to accelerate investment in tech innovation across the continent. This move comes amid concerns that Europe’s technology sector is falling behind the more advanced industries of the United States and China.
The initiative, part of Europe’s broader effort to bolster its technological competitiveness, involves 71 venture capital investors who collectively manage over 90 billion euros ($98 billion) in assets. These investors have committed to channeling their resources into European deep-tech companies, focusing on critical technologies such as artificial intelligence (AI), quantum computing, and other high-growth areas.
The “Trusted Investors Network” aligns with the recommendations made in a report published last month by Mario Draghi, the former president of the European Central Bank. In the report, Draghi emphasized that Europe needs significantly larger and faster investments to remain competitive globally. He warned that without increased financial backing for innovation, Europe risks being outpaced by the U.S. and China in critical technology sectors.
EU Commissioner Iliana Ivanova praised the new partnership and stated, “By joining forces with venture capital, we are responding to the urgent challenges laid out in the Draghi report that call for bold action to ensure Europe’s competitiveness in critical technologies.” Ivanova emphasized that the initiative is crucial for Europe’s economic future, particularly in the face of growing global competition in the tech sector.
The announcement comes as the United States has seen a surge in venture capital funding, particularly driven by investments in AI. Data published in July showed that AI-related deals have pushed U.S. venture capital investments to their highest level in two years. On the other hand, Europe has struggled to match the pace of U.S. and Chinese tech investments, sparking concerns over its ability to compete in key innovation areas.
The “Trusted Investors Network” is a strategic response to these challenges, aiming to close the gap by fostering a more robust European venture capital ecosystem. By leveraging the combined financial power of venture capital firms across the continent, the EU hopes to stimulate rapid growth in its tech sector and secure its place in the global technological race.
