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The French government is trying to progress the tech startup policy. The EU has developed a new instrument for establishing startup policies around Europe.
FREMONT CA: During the Portuguese Presidency of the EU Council, Portugal declared that it would further establish the European Startup Nations Alliance (ESNA). The Startup Nations Standard is overseen by a new institution. It can provide technical support and track progress, and gather best practices. Simultaneously, French President Emmanuel Macron announced the Scale-Up Europe initiative. By 2030, ten tech businesses worth €100 billion or more will have been established, according to a manifesto signed by tech companies, investors, and associations. The French government announced new responsibilities for the ESNA to increase talent attractiveness and commitments to facilitate the creation of 10 to 20 late-stage investment funds with at least €1 billion under management and a boost in deep-tech financing.
Their goal is to establish 10 to 20 funds with a total capitalization of more than €1 billion. There are currently two funds in Europe with more than €1 billion, compared to 40 funds in the United States. These funds are Eurazeo and EQT, a French and Swedish fund. This new fund of funds will invest in significant late-stage European funds. Fund managers should raise a new fund more simply with this new technique. For example, if the EIF says it is willing to invest €100 million or €200 million in a fund, it should entice more institutional investors to engage in this new fund.
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France, in particular, stated that it would redirect €1 billion from its France 2030 investment plan, Germany noted that it would invest €1 billion. The European Investment Bank mentioned that it would allocate €500 million specifically for this fund of funds and make some direct investments in late-stage funds. French and Danish investment banks will contribute €500 million to European late-stage funds. However, Greece has yet to make an announcement.
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