EIF launches €15bn fund to back 100 European VCs

A first close is expected this summer. The vehicle will back around 100 funds split into two tiers: mid-size managers raising €300m–600m, and mega funds targeting roughly €1bn, according to Sifted.

It's the second iteration of the European Tech Champions Initiative, first launched in 2023 to close what the EIF describes as Europe's "chronic late-stage funding gap" – a shortfall it currently pegs at €70bn compared to the US.

The original ETCI raised €3.9bn and backed 14 funds at the €1bn+ mark, including vehicles from Atomico, Headline and Eurazeo.

"A completely different ball game"

While its predecessor was backed by the European Investment Bank and just six member states, the new fund is seeking participation from as many EU countries as possible – and is widening its investor base to include insurers, commercial banks and pension funds. The EIF and EIB have already committed €1.25bn between them, Sifted reports.

"Some markets, like Germany and France, are completely capable of nurturing mega funds," Uli Grabenwarter, the EIF's deputy CIO, told Sifted – adding that less mature ecosystems will be served by the mid-size tier, where the growth-stage pipeline is thinner. He described ETCI 2 as "a completely different ball game."