Cyprus has formally endorsed the second phase of the European Tech Champions Initiative (ETCI 2.0), joining all EU member states in backing an investment programme expected to mobilise up to €80 billion for high-growth European technology companies.
The announcement followed the initiative’s presentation in Brussels last week on the sidelines of the Economic and Financial Affairs Council meeting, where the EIB Group, EU governments, institutional investors and fund managers confirmed their support.
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A Push To Close Europe’s Late-Stage Funding Gap
According to the finance ministry, Cyprus’ participation reflects its commitment to strengthening Europe’s innovation ecosystem and improving access to growth capital.
ETCI 2.0 is designed to address Europe’s long-standing shortage of late-stage funding for technology companies seeking to scale internationally.
The programme aims to raise €15 billion, around four times the size of the original fund launched in 2023, with the potential to unlock as much as €80 billion in investment for more than 1,500 European scale-ups. Its final size will be confirmed following the first closing process in the second half of 2026.
Building On The First Phase’s Results
The European Investment Bank Group is expected to contribute up to €1.25 billion from its own resources, according to the official announcement.
The second phase builds on the original ETCI programme, which supported 15 major investment funds and helped foster the creation of 12 European unicorns, companies valued at more than €1 billion.
Under the expanded structure, ETCI 2.0 will continue backing large technology funds while also extending support to mid-sized growth funds above €300 million for the first time.
The programme is expected to support the creation of more than 100 investment funds, including up to 45 mega-funds focused on scale-ups, with average investment tickets of about €200 million per company.
A New Platform For Cross-Border Capital
In addition to capital deployment, the initiative will establish a pan-European investment platform designed to connect investors with technology funds across the continent. The digital tool is intended to improve access to opportunities, market data and ecosystem insights.
The initiative is already backed by private institutional investors and asset managers, including Danske Bank, Banco Santander, BBVA, Azimut Holding and Green Arrow Capital, with further investors expected to join later.
The programme is set to complement national and European initiatives such as France’s Tibi initiative, Germany’s WIN programme and the Scaleup Europe Fund, with the broader goal of creating a more integrated European investment ecosystem.
Cyprus Welcomes The Initiative
Finance Minister Makis Keravnos described ETCI 2.0 as an important step towards strengthening European innovation, competitiveness and strategic resilience.
“By bringing together public and private resources, the initiative will support the growth of Europe’s most dynamic technology companies and help them expand internationally while keeping their base in Europe,” Keravnos said.
EIB Group President Nadia Calviño said the programme would help close Europe’s scale-up funding gap, allowing innovative companies to grow without relocating outside the continent. She noted that the first phase supported the creation of 15 investment funds and 12 unicorns within two years, providing the foundation for the expanded initiative.
