The role of public funding in Europe has been important in ensuring sufficient capital availability in the early and growth stages. As evidenced by increasing valuations of marquee companies, Europe has been able to close the gap compared to leading technology ecosystems in the world. This is already bringing more private investment into VC funds and innovative companies, which should be the first and foremost objective of our public funding initiatives.
There is an increased interest from institutional investors in European venture capital, driven by higher expectations of financial returns from European tech and the low interest rate environment, which has turned the attention of these investors towards alternative assets. We have noticed as well an increased interest from non-European institutional investors - notably sovereign wealth funds - in recent years, which reinforces the message that European tech is drawing worldwide attention.