The EU Artificial Intelligence and Blockchain Investment Fund is planning to invest €100 Million in European startups next year. This is according to note from the European Commission.
The new EU investment fund seeks to boost innovation in these two key technologies. The Fund was launched earlier this year and will finance the development of AI and blockchain companies as part of a wider move to create a dynamic EU-wide innovation ecosystem.
The Fund will be managed by the European Investment Fund. The first phase of the AI and blockchain fund will make available €100 million in 2020 to support companies working in this sector.
The European Commission notes that investment levels in Europe have traditionally lagged those in the US and Asia, however, and the aim of the fund is to narrow this investment gap and support the development of innovation in this field.
Additionally, an investment support program will also be set up to complement the fund, leveraging further financial support from EU Member States.
The European Union seeks to make Europe more attractive for start-ups to stay and grow in Europe.
Research indicates that the lack of access to finance causes nearly half of start-ups in the central, eastern and south-eastern Europe choose to leave. The European Commission, along with the European Investment Fund, has launched a pilot investment program that leverages EU resources under the InnovFin Equity program.
The European Digital Innovation and Scale-Up Initiative (DISC) provides finance for highly innovative high-risk digital start-ups across this region of Europe and as well as carrying out market consultations with investors and tech companies.