European startups call for the European Union to establish a 118-billion-sovereign-tech-fund

Some of Europe’s biggest tech companies are calling for a 100 billion-euro ($118 billion) fund to boost the development of green technology, science-driven startups, and other innovative industries, reports Bloomberg. The leaders of around 35 unicorns and startups, including Blablacar, FacilityLive, and Cabify, will call for the European Sovereign Tech Fund at an online meeting with the European Union’s Research and Innovation Commissioner Mariya Gabriel on Tuesday.

According to the document, the fund would combine public and private money and take the form of long-term equity investments, and some of the founders may invest some of their personal wealth in the fund.

The meeting on Tuesday will help to craft a Next Innovation EU policy. The EU looks beyond its role of regulating competition and lowering trade barriers to taking a more assertive approach to defending the region’s economic interests.

The tech founders want the bloc to push through measures that support a transition to a greener economy and lead digital innovation in health, education, and more experimental technologies. The document also says that they also want more help to turn the region’s tech startups into global tech giants.

The startups are also considering a European Sovereign Green Fund with a similar structure to the proposed sovereign tech fund but focusing on green tech and capital-intensive ventures.

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Source: Bloomberg