On the occasion of the “Growing Together” event in Athens, five development banks and investment organizations signed a cooperation protocol aimed at increasing the capacity of European growth funds to provide financing to technology companies based in the EU. During the next 3 to € 5.3 billion over 5 years will be mobilized under this agreement, promoting the development of European “unicorns”.
This unique partnership is part of the “Scale-Up Europe” initiative, presented in February 2022 in Paris, under the French Presidency of the Council of the European Union.
European start-ups need significant financial resources to support their development and internationalization to enable them to become global technology leaders.
To support the emergence of European “unicorns”, France, Germany, Greece, Denmark and Finland, through their development agencies, have decided to join forces and work together to develop the European market for the financial instruments they invest in. in companies that are in the growth stage. They signed a cooperation protocol that envisages a joint investment effort of 3.3 billion euros over the next 3 to 5 years.
The five partners are: Bpifrance (France), KfW Capital (Germany), Tesi (Finland), the Hellenic Development Investment Bank, formerly TANEO (Greece) and Vækstfonden (Denmark). This strategic partnership is open to new partners between European development organizations.
The agreement provides for effective business coordination at all levels of the investment process (regular exchanges on the flow of proposals, exchange of due diligence, joint communication in the context of co-investment activities, monitoring of investments, etc.), with each institution remaining autonomous and independent in its investment decisions.
It also aims to contribute to the development of the ecosystem: exchange of best practices in investment selection, exchange of information and expertise, reports and publications on the state and performance of the European market and local markets, etc.
Through this agreement, the five partners reaffirmed their ambitions: to develop European technology champions, who will play a leading role in securing Europe’s economic and industrial future, in ensuring its competitiveness and in securing its technological dominance.
Source: Capital
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