Key Takeaways:

• $100 Billion Initiative: The EU spearheaded the “Trusted Investors Network” with a $100 billion fund to accelerate the growth of deep tech startups, especially from blockchain and cryptocurrency sectors.
• Deep Tech and Blockchain Focus: It will target innovative startups in the deep tech sector-particularly those that will affect the future of blockchain technology and cryptocurrency markets-as part of its aim to ramp up the tech ecosystem in Europe.

The European Union unveiled its $100 billion for the new initiative “Trusted Investors Network” in a proposal to accelerate growth amongst deep-tech startups while fostering the next generation of leaders for European tech and blockchain cryptocurrency innovation.

Boosting Blockchain and Cryptocurrency Startups in Europe

The European Commission, on October 21, proposed the “Trusted Investors Network” so as to turbocharge growth in Europe’s deep tech sector. This is going to help startups dealing with technologies such as blockchain and generally having a very strong influence on cryptocurrency and also trading markets. The EU is seeking huge investments that will enable trading and deep tech firms to scale up fast.

Backed by the EIC Fund, the network is composed of 71 investors, including Bpifrance, Atomico, and Sofinnova, with over €90 billion of assets under management, which, together with the EIC Fund will provide co-investment opportunities to the benefit of those start-ups.

The EU commissioner for research, innovation and education Iliana Ivanova commented, underlining that the Trusted Investors Network will bridge funding gaps facing so many tech companies: “With the Trusted Investors Network, we are taking a significant step to enhance Europe’s innovation ecosystem and ensure that our most promising companies have the capital and support they need to scale up”.

Scaling of European Startups

The EIC Fund has already invested close to €1 billion in more than 250 startups. With the Trusted Investors Network launched, co-investments will increase even further with the goal of giving innovative companies an even greater boost.

This launch ran side by side with the first EIC Scaling Summit, bringing together 120 promising startups ready to take the lead in the European tech scene. Of these, 72 were admitted into the EIC Scaling Club-a program specifically designed to support scaling by startups. The EIC aims to bring 20% of those startups into unicorn territory, defined as achieving more than €1 billion in valuation. Together, the members of the Scaling Club have raised more than €73 million-or around $79 million-in funding, while further investment rounds are expected soon.

EU Incentivizes Innovation in Blockchain

The European Union has been a strong supporter of blockchain technology and has nurtured its growth through policy, legislation, and finance. The Trusted Investors Network also intends to support startups with applications of blockchain technology as another way to spur more development in the decentralized space.

The Commission itself issued around €180 million ($195 million) in grants under the Horizon 2020 program to fund blockchain research and development between 2016 and 2020.  Regulations in Europe continue to support innovation in the blockchain space with grants and incentives to invest through programs like Horizon. 

The EU continues to have active partnerships with the blockchain community through organizations such as the International Association of Trusted Blockchain Applications (INABA) and the European Blockchain Observatory and Forum to bring about constant contact and development within the area of blockchain.