EU plans 70 billion euros for start-ups: stay or go?

EU plans 70 billion euros for start-ups: stay or go?

The European Investment Bank (EIB Group) plans to make major investments in the European technology sector by 2027. A total of 70 billion euros should flow into innovative and high-growth tech companies in order to ensure that they remain in the EU. The aim of this initiative is to support young companies in the areas of artificial intelligence (AI), clean technologies and infrastructure, which are currently often migrating to non-EU countries. These measures will be accompanied by the new TechEU program soon to be launched by the EIB Board of Governors. This program aims to encourage both private and public investors to participate in promising projects to strengthen European innovation. Loud IT Daily The total volume of mobilized funds can even be up to 250 billion euros.

The urgency of these investments is underlined by an alarming statistic: in the last 15 years, almost 30 percent of European unicorn start-ups have relocated their headquarters to a non-EU country, particularly the USA. Between 2008 and 2021, almost 30 percent of unicorn start-ups left Europe. While around $70.5 billion will be available for start-ups in the USA in 2024, it will only be $16 billion in Europe - despite a similar number of start-ups on both sides of the Atlantic. This imbalance shows the challenges that European companies face.

Strategy to increase competitiveness

To counteract the competitive disadvantage, the European Commission has presented a comprehensive strategy. This strategy is intended not only to increase competitiveness, but also to simplify existing regulations in areas such as insolvency, labor and tax law. Such reforms are necessary to improve the framework conditions for start-ups and create an attractive environment for investors.

The TechEU program will particularly benefit innovative companies in clean technologies, health, security and defense technologies, digital infrastructure and critical raw materials. The main focus is to ensure that ideas and companies born in the EU grow in Europe and do not migrate to other countries. These initiatives aim to create a sustainable basis for the growth of tech start-ups in Europe.

Given the current challenges, it is crucial that appropriate measures are taken to ensure that the European technology sector not only remains competitive, but is also able to retain and grow its talent and innovation. The EIB's long-term investments could make a crucial contribution to this goal. Further details about the planned investments and strategies can also be found in an article by Mirror to find.