**Cyprus Backs EU Plan to Mobilise €80bn for Tech Firms**
Cyprus has officially endorsed the second phase of the European Tech Champions Initiative (ETCI 2.0), a significant investment drive aimed at mobilising up to €80 billion for rapidly growing technology companies across Europe. This announcement was made on Monday, following a presentation of the initiative during the Economic and Financial Affairs Council (ECOFIN) meeting in Brussels last week.
The ETCI 2.0 initiative seeks to address a critical issue within the European tech landscape: the shortage of late-stage funding for technology firms that have progressed beyond the start-up phase. These companies often require substantial investment to compete effectively on an international scale. By participating in this initiative, Cyprus reaffirms its commitment to enhancing European innovation and improving access to growth capital for innovative enterprises.
The expanded programme is ambitious, aiming to raise up to €15 billion, which is approximately four times the size of the original fund launched in 2023. The initiative is projected to facilitate total investments of around €80 billion, benefiting over 1,500 European scale-ups. The final size of the programme will be determined in the latter half of 2026, following the completion of contributions from participating entities during the first closing process.
The European Investment Bank (EIB) Group is set to contribute up to €1.25 billion from its own resources to support this initiative. The second phase builds upon the achievements of the original ETCI programme, which successfully supported 15 major investment funds and contributed to the emergence of 12 European unicorns—companies valued at over €1 billion.
ETCI 2.0 will not only support large technology funds but will also expand its focus to include mid-sized growth funds exceeding €300 million for the first time. The initiative aims to establish more than 100 investment funds, including up to 45 mega-funds that will invest an average of €200 million per company. Additionally, a new pan-European investment platform will be created to connect investors with technology funds across Europe, enhancing access to investment opportunities, market insights, and ecosystem information through a dedicated digital tool.
The initiative has garnered support from various private institutional investors and asset managers, including Danske Bank, Banco Santander, BBVA, Azimut Holding, and Green Arrow Capital, with more investors expected to join in the future. It is designed to complement existing national and European investment programmes, such as France’s Tibi initiative, Germany’s WIN programme, and the Scaleup Europe Fund, thereby fostering a more integrated European investment ecosystem.
Cyprus’ Finance Minister Makis Keravnos expressed enthusiasm for ETCI 2.0, highlighting its potential to bolster European technological sovereignty, innovation, and private investment. He stated, “ETCI 2.0 will strengthen innovation financing in Europe, contributing to the competitiveness and strategic autonomy of the European economy.” The finance ministry further noted that the initiative would enable more European technology companies to access the necessary capital for growth, international expansion, and sustained operations within Europe.
The initiative is also expected to enhance cooperation between national and European investment institutions by establishing a structured framework to support innovative companies with promising growth potential. EIB Group President Nadia Calvino emphasised the importance of the expanded programme in providing European innovators with the capital needed to thrive while remaining based in Europe. She remarked, “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 pointed out that the first phase of the initiative, which successfully created 15 major funds and supported the development of 12 unicorns within two years, laid the groundwork for this larger programme. She noted that the initiative sends a strong message of unity and determination from member states, the European Commission, the EIB Group, and private investors.
At the launch, Minister Keravnos reiterated Cyprus' commitment to the initiative, stating that it would help European technology companies secure the resources necessary for global expansion while maintaining their operations within Europe. He affirmed, “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.” He concluded by expressing full support for the collective effort aimed at strengthening European capital markets, increasing private investment, and enhancing the strategic resilience of the European Union.