Introduced by Andreas Munk Holm, this EUVC Live at GoWest series spotlights the thought leadership of policymakers, institutional investors, GPs, corporates, and public capital leaders around one defining question:
How does Europe mobilise its own capital to secure its technological future?
Across the sessions, one theme emerges repeatedly:
Europe does not lack talent.
It does not lack innovation.
It does not lack savings.
It lacks coordination.
The EIC in Practice: Public Capital as Market Infrastructure
Europe’s deep tech ambition is not a question of science.
It is a question of execution.
In this talk, Michiel Scheffer, President of the Board of the European Innovation Council (EIC), explains how the institution operates in practice, partnering with VCs, corporates, and institutional investors to translate Europe’s deep tech ambition into tangible outcomes.
You cannot understand European venture dynamics without understanding how public capital actually works. The EIC sits precisely at that intersection, where policy ambition, venture economics, and industrial scale meet. Its mission is not merely to fund research. It is to convert deep tech into scalable European companies.
Why Private Markets Alone Are Not Enough
Founded only six years ago, the EIC is still institutionally young. Yet in that time, it has funded more than 740 companies and built a trusted investor network of over 100 recurring co-investors. For every euro of public money deployed, EIC-backed companies have attracted roughly three and a half euros in private capital. The ambition is not to crowd out private markets, but to deepen them.
This immediately raises a structural question. If Europe’s scientific base is world-class, why has private capital alone not filled the deep tech gap?
The answer lies in coordination. Growth-stage funding remains uneven. Capital markets remain fragmented across jurisdictions. Regulatory complexity slows cross-border scaling. Founder readiness varies. Europe does not lack breakthrough science, but it does struggle to translate that science into industrial scale across 27 regulatory systems.
Public capital, in this framing, becomes infrastructure.
Schäffer argues that when structured correctly, public intervention does not distort markets. It de-risks them. It anchors syndicates. It reduces information asymmetry. It creates bridges between fragmented ecosystems. The EIC does not position itself as a substitute for venture capital. It positions itself as a market completer.
Does Public Capital Slow or Accelerate Markets?
Still, the discussion remains candid about the limits of public funding. A grant or equity ticket can validate technology. It cannot guarantee commercial traction, scalable governance, or investor-grade execution. Some EIC-backed companies continue to struggle with follow-on financing, not because the science fails, but because scaling a company requires more than technical validation.
Execution remains the differentiator.
A central question emerges:
Does public intervention distort markets or enable them?
Scheffer argues that public capital, when structured properly, acts as:
a de-risking anchor
a syndication catalyst
a bridge across fragmented ecosystems
The objective is not to replace venture capital.
It is to make venture capital function more efficiently.
The EIC’s trusted investor network and structured programs are designed to:
accelerate syndication
improve investment preparedness
reduce cross-border friction
strengthen founder VC-readiness
Funding is only one layer.
Market integration is the real objective.
The Follow-On Challenge
One of the more candid parts of the discussion addresses a persistent issue:
Why do some EIC-backed companies still struggle to secure VC follow-on funding?
The answer is uncomfortable.
Grants and public equity can validate technology.
But they do not automatically create:
scalable business models
commercial traction
investor-grade governance
cross-border expansion capacity
Bridging that gap requires coordination between public capital, private capital, and founders.
Execution, not just funding.
The €3 Billion Scale-Up Initiative
The next phase is structural.
The next phase of the EIC reflects that reality. A newly launched €3 billion Scale-Up initiative aims to connect pension funds and institutional LPs with later-stage European companies approaching profitability and exit readiness. The goal is to aggregate opportunity, reduce access friction, and mobilise sidelined institutional capital that has historically struggled to access venture exposure at scale.
The broader reframing is clear. Public capital is not simply a funding mechanism. It is ecosystem architecture. When markets are fragmented, coordination becomes a public function. When private capital hesitates, anchoring reduces perceived risk. When ecosystems are uneven, cohesion becomes strategic.
The model focuses on:
aggregating opportunity
reducing information asymmetry
de-risking institutional access
mobilising sidelined capital
Institutional LPs often cite access and scale as barriers.
The initiative attempts to solve both.
Public Capital as Ecosystem Infrastructure
The session ultimately reframes public capital.
Not as distortion.
But as infrastructure.
When markets are fragmented, coordination becomes a public function.
When growth capital hesitates, anchoring reduces perceived risk.
When ecosystems are uneven, cohesion becomes strategic.
The EIC positions itself as a market completer.
Not a market substitute.
The Core Takeaway
Europe’s constraint is not innovation.
It is scale coordination.
If deep tech is to become industrial capability, capital must move across stages, borders, and investor types.
Public capital alone cannot build markets.
Private capital alone has not.
The future lies in structured collaboration.
Because in Europe’s deep tech race, execution is the differentiator.
And execution requires infrastructure.
