The European Union (EU) is seeking ways to bring in more venture capital (VC) into its tech sector. In line with this ambition, the region has now launched what it calls the “Trusted Investors Network,” as a way to keep up with the innovative strides of the United States and China.
EU Commissioner Iliana Ivanova announced the launch of the initiative on Monday during a meeting with Greek Prime Minister Kyriakos Mitsotakis. The EU will be hoping to use this initiative to draw more investment into its tech industry, ultimately supporting tech-based startup firms.
EU to Boost Tech Sector
According to the announcement, the Trusted Investors Network is setting out with a major focus on biotechnology and semiconductors for artificial intelligence development. Therefore, it will seek to attract, first and foremost, investments in these specific areas.
As Reuters confirmed in a recent report, the EU has already signed on over 90 billion euros ($98 billion) worth of assets to the initiative. That is, from about 71 investors from across the continent, who share a common interest in committing their funds to European deep-tech startups.
Sharing the update, Ivanova wrote in an X post:
“The EU joins forces with investors to supercharge deep-tech startups and scale #innovation through co-investment with the #EUeic Fund. Shaping the future of European #DeepTech.”
Meanwhile, it might be worth mentioning that the recent moves of the EU are in line with a previous report from the European Central Bank (ECB). The ECB had earlier recommended for the continent to prioritize its tech sector and invest heavily in it, albeit as a matter of urgency. It shared that this was necessary as long as Europe does not want its tech sector to be left behind.
Cautious Still
Despite the region’s best efforts to maintain its competitiveness in the area of tech, Europe remains ever cautious. It is with this safety consciousness in mind that the EU has continued to seek adequate regulations that will help it safeguard its tech sector.
As it were, when regulations are in place and in good order, companies and developers will be encouraged to innovate within any such marketplace. So, some of the efforts of Europe in that regard include the passage of the Markets in Crypto-Assets (MiCA) regulation and, more recently, the EU AI Act.
