EU launches Trusted Investors Network to coax more venture capital into deep tech via the EIC Fund
- ›The European Commission and the EIC Fund launched a Trusted Investors Network to co-invest in deep tech companies across Europe.
- ›The initial cohort included 71 investors representing over €90 billion in assets with a later expansion bringing membership to 111 investors and over €300 billion in assets under management.
- ›The initiative aims to scale up co-investment alongside the EIC Fund which has invested nearly €1 billion in 251 start ups and leveraged several billions of euros in private follow‑on funding.
- ›The network formalises commitments through a charter and is positioned alongside other EIC scaling tools such as the EIC Scaling Club and the EIC Scaling Summit.
- ›The move addresses Europe’s well known scaling and patient capital gaps but raises questions about market distortion, governance and measurable impact.
Commission joins forces with venture capital to support deep tech innovation in Europe
On 21 October 2024 the European Commission and the European Innovation Council launched a Trusted Investors Network intended to mobilise private capital into deep technology companies in Europe by co-investing alongside the EIC Fund. The initiative brings together venture capital firms, public investment banks, foundations and corporate venture arms that have committed to co-invest and exchange best practice when backing high risk, capital intensive technologies.
What was announced
The first publicly announced cohort comprised 71 investors from across Europe said to represent more than €90 billion of assets. The EIC presented the network at an event in Athens where Commissioner Iliana Ivanova launched the initiative and participants signed a Trusted Investors Network Charter. Subsequent material from the EIC indicates the network expanded to 111 investors representing over €300 billion in assets under management. Membership covers a wide range of investor types and is open to other qualified institutional investors that align with the charter.
| Item | Figure reported in EIC communications | Notes |
| Initial Trusted Investors Network membership | 71 investors | Announced at launch in Athens, October 2024 |
| Initial assets represented | Over €90 billion | Aggregate assets under management reported for initial cohort |
| Expanded membership (later communication) | 111 investors | EIC website updated to show second cohort and expansion |
| Aggregate assets reported after expansion | Over €300 billion | Represents broader reach of the Network |
| EIC Fund investments to date | Nearly €1 billion | Invested across 251 companies as reported |
| Co-investments attracted | Over €4 billion | EIC claims leverage of roughly €4 private for every €1 EIC invested in earlier communications |
| EIC Fund target 2021-27 | Support over 500 companies | Fund pipeline reported at 241 additional companies |
How the EIC says this will work in practice
The network is built around three practical aims. First, to signal a coordinated group of investors willing to participate in follow-on rounds alongside the EIC Fund. Second, to promote exchange of best practice when investing in deep tech so that due diligence and term structures are better aligned with technology risk. Third, to provide a pipeline and matchmaking function so portfolio companies can access larger rounds required for scaling.
The EIC also offers business acceleration services and coaching as part of its Accelerator pathway. The broader EIC process includes a short proposal stage, access to business coaches, submission of a full proposal, jury interviews and, for successful candidates, grant and investment agreements with due diligence for the equity component.
Who is involved and governance
Members named range from well known European venture funds to public promotional banks and corporate venture arms. The EIC lists a long alphabetic roster of participants and makes the full membership public on its website. The EIB serves as the investment adviser to the EIC Fund. The Fund itself is managed by an Alternative Investment Fund Manager under the governance arrangements set by the EIC Fund Board and its advisory structures.
Context and rationale
Europe has long highlighted a gap in later stage and patient capital for deep technology companies that require capital intensive development timelines. The Commission and the EIC position the Trusted Investors Network as a mechanism to reduce investor fragmentation, create predictable co-investment pathways and make it easier for winners to receive the larger rounds needed to scale internationally.
Potential benefits
If the network succeeds it could improve access to larger rounds, reduce time to scale for high potential companies and encourage standardised due diligence approaches that recognise technology risk. Public matching through the EIC Fund can help de-risk investments and attract private partners who otherwise might avoid early stage deep tech.
Risks and unanswered questions
The announcement raises several issues to monitor. First, the practical extent to which listed investors will actually write cheques on follow‑on rounds is not transparent. A public roster is a signal but does not guarantee deployment. Second, there is potential for crowding effects where public capital influences valuations or investment terms in ways that favour certain players. Third, governance and conflict of interest management will matter when public funds and private investors co-invest. Fourth, the ultimate test is measurable impact in terms of sustained scaling, job creation, technological sovereignty and financial returns to the public purse.
How the initiative fits into EU innovation architecture
The Trusted Investors Network sits within the EIC ecosystem which is implemented by EISMEA. It complements other EU tools such as the EIC Accelerator grants, business acceleration services, national innovation support and scaleup programmes. The EIB plays a central advisory role for the EIC Fund and other contractors provide due diligence, dealflow and operational services for the investment pipeline.
Operational details and next steps
The network will expand membership and profile co-investable opportunities coming from EIC and national pipelines. The EIC has opened channels for interested investors to contact the EIC Fund team. The Commission says more development will follow in 2025 and that the initiative aligns with the political priorities set out in Commission guidance and independent reports that recommended bolder action to shore up competitiveness in critical technologies.
What to watch
Key indicators of success will include the number and size of follow on rounds where Trusted Network members actually co-invest alongside the EIC Fund, the private capital mobilised per euro of public investment, distribution of investment across member states and technologies, governance arrangements and conflict of interest safeguards, and independent evaluations of whether supported firms scale sustainably and create value beyond short term valuation increases.
The Trusted Investors Network is a clear attempt to systematise co‑investment for risky, capital intensive technologies. It responds to genuine market gaps but its real value will depend on execution, measurable deployment of capital, consistent reporting and robust governance to ensure public funds catalyse durable private investment rather than distort markets.