PARIS, Feb. 9 — France and Germany will each contribute 1 billion euros (RM4.77 billion) to a new fund to support tech startups, French officials announced yesterday.
The fund, which will be linked to the European Investment Fund, will join private investors in taking stakes in what are hoped to be the future champions of European and global technology.
Today, there are only two funds in the EU with over €1 billion investing in technology companies.
Underinvestment is blamed for holding European startups back compared to their competitors in the United States, where many private equity funds are investing in the tech sector.
“We want a European venture capital industry as strong as the American venture capital industry,” French Digital Minister Cédric O said after a two-day conference on technical autonomy from Europe.
His office said it hopes there will soon be a dozen billion-euro funds to support European startups.
O said that together with other investors, such as public investment banks, the fund already has 3.5 billion euros in pledges. -AFP