Cyprus supports new European scale-up investment drive

Cyprus on Monday confirmed its support for the second phase of the European Tech Champions Initiative (ETCI 2.0), joining all EU member states in backing a European investment drive that aims to mobilise up to €80 billion for fast-growing technology companies.

The initiative was first presented in Brussels last week, on the sidelines of the Economic and Financial Affairs Council (ECOFIN) meeting, with the EIB Group, EU governments, institutional investors and fund managers backing its second phase.

The finance ministry said Cyprus’ participation confirms the country’s commitment to strengthening European innovation and expanding access to growth capital for innovative businesses.

The expanded programme is designed to address one of Europe’s key challenges, the shortage of late-stage funding available to technology companies that have moved beyond the start-up phase and require significant investment to compete internationally.

ETCI 2.0 aims to raise up to €15bn, around four times the size of the original fund launched in 2023, with the initiative expected to mobilise total investments of up to €80bn for more than 1,500 European scale-ups.

The size of the programme will be finalised in the second half of 2026 when contributions from participating parties are completed through the first closing process.

The EIB Group will contribute up to €1.25bn from its own resources, an official announcement mentioned.

The second phase builds on the results of the original ETCI programme, which supported 15 major investment funds and contributed to the creation of 12 European unicorns, companies valued at more than €1bn.

Under the expanded initiative, ETCI 2.0 will support large technology funds while also broadening its scope to include mid-sized growth funds exceeding €300 million for the first time.

The programme is expected to support the creation of more than 100 investment funds, including up to 45 mega-funds investing in scale-ups with average investment amounts of around €200m per company.

A new pan-European investment platform will also be established to connect investors with technology funds across Europe, offering greater access to investment opportunities, market information and ecosystem insights through a dedicated digital tool.

The initiative is backed by private institutional investors and asset managers including Danske Bank, Banco Santander, BBVA, Azimut Holding and Green Arrow Capital, alongside other investors expected to participate at a later stage.

The initiative will complement national and European investment programmes, including France’s Tibi initiative, Germany’s WIN programme and the Scaleup Europe Fund, with the aim of creating a more integrated European investment ecosystem.

Finance Minister Makis Keravnos welcomed ETCI 2.0, describing it as an important step towards strengthening European technological sovereignty, innovation and private investment, while also supporting the EU’s strategic resilience and sustainable growth.

“ETCI 2.0 will strengthen innovation financing in Europe, contributing to the competitiveness and strategic autonomy of the European economy,” the finance ministry said.

The ministry added that “through ETCI 2.0, more European technology companies will gain access to the capital they need to grow, expand internationally and maintain their presence in Europe.”

It also said the initiative would strengthen cooperation between national and European investment institutions by creating “an organised framework to support innovative companies with strong growth prospects.”

EIB Group President Nadia Calvino said the expanded programme would provide European innovators with the capital needed to grow while ensuring they remain based in Europe.

“This is a decisive step to address the funding gap for scale-ups, making sure that ideas, technologies and innovative firms born in Europe can stay and thrive in Europe,” Calvino said.

She said the first phase, which created 15 major funds and supported the development of 12 unicorns within two years, had provided the foundation for the larger programme.

“The initiative sends a strong message of unity and determination from the member states, the European Commission, the EIB Group and private investors,” Calvino added.

Representing Cyprus at the launch, Keravnos said the initiative would help European technology companies secure the resources needed to expand globally while maintaining their operations within Europe.

“By bringing together public and private resources, the initiative will support the growth of Europe’s most dynamic technology companies and help them expand internationally while keeping their base in Europe,” Keravnos said at the time.

“We fully support this collective effort for stronger European capital markets, greater private investment and increased strategic resilience for the European Union,” he added.