Public funding

Public funding has long been relevant to the development of the private equity and venture capital ecosystem. National legislative programmes aim at supporting innovation through venture and growth capital, under EU state aid rules.

EU funding has allowed institutions such as the European Investment Fund (EIF) to promote the development of venture capital and growth funds across the Union. Public capital has led to the creation of many additional private funds and contributed in making EU financial markets more mature. More recently, the EIF and the more recently set up European Innovation Council (EIC) have expanded their role towards direct, VC-like investments in smaller business as well as increasing their focus on financing for scale-ups. 

How does it affect private equity and venture capital?

The budget lines granted to innovation and competitiveness are crucial to allow the European Investment Fund to serve as an anchor investor for many VC and growth funds across Europe. The next EU budget (or "Multi Financial Framework - MFF") is the opportunity to increase the support to our ecosystem, while making the EU operating conditions suitable to all industry participants. Invest Europe also believes the EU budget can be used as a way to leverage private financing more broadly.