The European Union is planning a 3.5 billion-euro ($3.9 billion) fund that will invest in early-stage technology in an effort to increase the pipeline of innovations that might someday take on giants in the U.S. and China.
Traditional venture capital firms tend to avoid the costly and risky research needed to turn a scientific breakthrough into a viable product, said Jean-Eric Paquet, the European Commission’s director-general for research and innovation.
The fund will seek to close that investment gap by providing equity and grant funding to early-stage firms in so-called deep tech, such as manufacturing, biotechnology, health-tech, and artificial intelligence, he said. It’s set to formally launch in 2021 and will be run by the European Innovation Council, though the final size could change depending on the outcome of budget talks with the bloc’s member states.
More information: labsoflatvia.com and bloomberg.com
