EIF launches €15bn fund of funds to back 100 growth-stage VCs

2026-03-25 · Source: Sifted · Field: Finance & Economics — Capital Markets & Investment Management, Banking & Financial Services, Economic Analysis & Policy · Depth: Intermediate, short

Summary

The European Investment Fund (EIF) has launched the European Tech Champions Initiative 2 (ETCI 2), a new €15bn fund of funds, marking the largest of its kind. This initiative aims to support approximately 100 growth-stage venture capital funds across Europe, targeting both "mid-size" funds (€300m-€600m) and "mega funds" (€1bn). ETCI 2 significantly expands upon its 2023 predecessor, which raised €3.9bn and backed 14 funds, including those from Atomico and Eurazeo. The EIF and European Investment Bank (EIB) have already committed €1.25bn to ETCI 2, which seeks broader funding from institutional investors like insurers and pension funds, alongside public backers. The ultimate goal is to unlock up to €80bn in scaleup funding, enabling portfolio funds to invest up to €200m per company, a substantial increase from ETCI 1's average of €60m.

Key takeaway

For investors seeking to capitalize on European growth-stage companies, the EIF's €15bn ETCI 2 presents a significant opportunity. Your firm could consider participating as an institutional investor in this fund of funds or, if you are a growth-stage VC, prepare to align with its expanded investment criteria, which now include mid-size funds and larger per-company investments up to €200m. This initiative signals a robust commitment to scaling European tech.

Key insights

EIF's €15bn fund of funds aims to bridge Europe's late-stage funding gap by backing growth-stage VCs.

Principles

• Expand investment criteria to include mid-size VC funds.
• Diversify funding sources beyond public backers.

In practice

• Target mid-size VC funds (€300m-€600m) in emerging markets.
• Seek institutional investors for large-scale fund of funds.

Topics

• European Investment Fund
• Venture Capital Funding
• Fund of Funds
• Growth-stage Investment
• European Tech Champions Initiative

Best for: Investor, Entrepreneur, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.