Europe’s moment: Venture Capital at the heart of growth

Europe’s venture ecosystem is entering a decisive period. New policies, a stronger innovation agenda, and long-awaited simplifications are coming together to unlock growth and financing. We enter this new phase with a clear purpose: to ensure VC can operate across borders in a robust, enabling framework, free from bottlenecks. And the past few weeks alone have brought breakthroughs and news that show what is possible.

Increasing funding and reducing red tape for InvestEU

Last week, the Council of the EU and the European Parliament reached a provisional agreement under the investment Omnibus (Omnibus II) to make InvestEU easier and more efficient: a leap forward for Europe’s innovation financing architecture. It brings additional funding to InvestEU – at a time when most funds had already been frontloaded – and introduces targeted simplifications and administrative relief.

These changes signal a deliberate shift toward more agile, impactful deployment of European funds, translating directly into more capital flowing more to where it matters.

Enhancing businesses’ “investability”

Broader policy changes for portfolio companies are also on the horizon. The Startup and Scaleup Strategy represents a fundamental opportunity to reset the conditions under which European innovation can thrive. This is the time for the European Commission to ensure that Europe’s competitiveness promotes growth and success, allowing businesses to pivot, consolidate, and evolve in the non-linear manner innovation demands – from early-stage to late growth – while meeting their financing needs to attract and retain the players Europe cannot afford to lose.

VC represents a key industry in this ecosystem, and as the voice of the industry, Invest Europe is pushing on four key proposals currently under review by the European Commission, including:

• The 28th regime: a single, optional, harmonised set of EU-wide rules for innovative companies across the Single Market, covering aspects of corporate law, insolvency, labour law, and tax law. 

• The European Innovation Act (EIA): aimed at improving framework conditions for innovation in the EU by addressing challenges that hinder the uptake and diffusion of innovative solutions across all sectors, supporting in particular startups and scaleups.

• The General Block Exemption Regulation (GBER): which allows EU Member States to grant certain types of state aid provided specific conditions are met.

Each of these files has direct and material influence over the ability of VC to invest across borders and scale.

Unlocking additional capital for VC

Across Europe, governments are launching ambitious initiatives to steer institutional investors back towards equity and venture. France’s Tibi initiative has already unlocked €7 billion for tech and is now in its second phase, while the UK’s Mansion House compact could channel £50 billion from pension providers into private markets, including a significant share for VC. Germany’s Win Initiative adds €12 billion in growth-stage funding, with similar efforts spreading to Poland and beyond. An EU-level European Innovation Investment Pact is even under discussion for 2026, alongside reforms to make it easier for pension funds, insurers, and high-net-worth individuals to invest in private assets. These are bold steps that recognise VC’s role in Europe’s growth and competitiveness.

At the same time, policymakers are working to improve the operating environment for VC managers. An upcoming “Omnibus” package should simplify fund authorisation and fix pre-marketing barriers, while the 2026 EuVECA review is set to be the flagship initiative branded for the venture ecosystem. It carries both opportunity – widening the passport and easing rules for larger managers – and risk if new requirements are added.

Your voice makes the difference

The debates are ongoing, and the stakes are real. But none of this work is possible without collective effort.

If you want to engage more deeply with us, get in touch, join working groups, and help shape Europe’s VC future. Together, we can turn Europe’s momentum into a lasting movement for innovation.