Exclusive: EQT wants to back UK startups with EU’s €5bn superfund

· Source: Sifted · Field: Finance & Economics — Capital Markets & Investment Management, Entrepreneurship & Start-ups · Depth: Intermediate, quick

Summary

Swedish investment firm EQT, recently appointed to manage the European Union's €5bn ScaleUp Fund, has expressed a strong desire to invest these funds into UK companies. However, the fund's current mandate restricts investments to EU member states, excluding the UK post-Brexit. EQT CEO Per Franzén highlighted that the fund's purpose is to support Europe's venture ecosystem, and excluding the UK would be a "shame" given its significant startup landscape. While the EU's rules currently prevent such investments, there is a potential for these regulations to be amended, especially considering the UK's prominent role in the European tech sector. This situation underscores the ongoing complexities of post-Brexit financial integration and the desire of private firms like EQT to access broader investment opportunities.

Key takeaway

For venture capital investors evaluating European tech opportunities, recognize that the EU's €5bn ScaleUp Fund currently excludes UK startups due to mandate restrictions. This limits a significant capital source for UK-based innovation. You should monitor potential EU policy amendments that could broaden investment eligibility, as EQT's interest signals a strong market desire for UK inclusion. Factor this regulatory landscape into your strategic planning for cross-border investments.

Key insights

EU investment mandates can restrict capital flow to key non-member tech hubs like the UK.

Principles

Topics

Best for: Investor, Entrepreneur, Policy Maker

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