EU forms investors club amid tech doom and gloom

The European Union is establishing a network of trusted tech investors to address the significant funding gap in critical technologies compared to regions like the U.S. and China. This initiative, set to launch on October 21 in Athens, aims to attract private venture capitalists to co-invest alongside the EU's own fund, which has been active since 2021. Over 40 investors have already confirmed their participation, indicating strong interest in supporting high-risk tech ventures. Former Italian Prime Minister Mario Draghi highlighted the EU's challenges in scaling innovative digital companies and attracting necessary financing in his report on competitiveness. He noted that U.S.-based AI startups received 61% of global funding, while EU firms only secured 6%. This disparity has raised concerns among European tech executives about the EU's ability to foster innovation effectively. Critics argue that the EU's regulatory approach, particularly in areas like data protection and artificial intelligence, may hinder its competitiveness in the global tech landscape. Executives from companies like Just Eat Takeaway and Delivery Hero have expressed fears that without addressing regulatory barriers and funding issues, the EU risks falling behind in innovation. The Commission's focus will be on deep tech, which encompasses capital-intensive fields such as quantum computing, microchips, and cybersecurity. This strategic direction aims to ensure that the EU becomes a significant player in advanced technology sectors, rather than just a supporter of ordinary software applications.