EU Unveils ‘Trusted Investors Network’ to Enhance VC Investment in Technology

The wind of change is blowing through Europe, and it smells a lot like euros. On October 21, 2024, the European Union unveiled its latest financial superhero, the ‘Trusted Investors Network,’ at a well-attended meeting in Athens, Greece. While not donning capes and masks, this network is all set to save our deep-tech sectors by attracting and facilitating venture capital investments.

Objective: Strengthening Europe’s Innovators

The main mission, should investors choose to accept it, is to boost venture capital investment in Europe’s most innovative deep-tech companies. By strengthening the investor base, the network envisions more than just financial transactions; it’s about fostering a cooperative community that thrives on shared knowledge, risk, and returns.

Collaboration with the European Innovation Council Fund

The network is cleverly collaborating with the European Innovation Council (EIC) Fund to co-invest in European deep-tech companies. This dynamic duo aims to put the ‘super’ in scaling and growth, making sure Europe’s deep-tech firms are not only surviving but thriving across the continent.

Addressing Investment Gaps

Europe has long been the underdog in the investment arena when compared to the U.S., especially in the high-risk zone of deep-tech ventures. Currently, European investments are only a quarter of those in the U.S. The Trusted Investors Network is here to even the scales, aiming to narrow this gap with its strategic initiatives.

Impact and Previous Success

The EIC Fund has already proven its mettle with over 200 investments approved under Horizon Europe and participation in more than 100 funding rounds in 2023. For every euro the EIC Fund puts into play, an additional €3.8 is drawn from other investors. Talk about catalytic charisma!

Future Goals: Fertile Grounds for Europe’s Tech Giants

The Trusted Investors Network is not just about doling out cash; it aims to create optimal conditions for Europe’s deep-tech companies to scale up. This involves fostering syndication opportunities, showcasing EIC funding opportunities, and facilitating co-investments with the EIC Fund.

Overall, this strategic initiative is all about enhancing the competitiveness of European deep-tech companies. By leveraging collective investment efforts and fostering a collaborative environment among venture capital investors, the EU is not just aiming for the stars—it’s positioning Europe as the launchpad for the next generation of tech innovation.