Europe has often been criticized for its technological delay compared to the United States. It’s not just a question of cultural differences: the critics are indeed right. Europe may be in a leading position in terms of green policies (the reuse of old wind turbines as noise barriers is a good example), but the region is undoubtedly catching up in terms of transformative technologies like AI. Enter the new Scaleup Europe fund, which could help advance the EU’s attempts to finally break free from American technological dominance.
The fund primarily focuses on startups working in the deep tech space. This includes both AI and emerging technologies like quantum computing. But what is the total size of the Scaleup Europe Fund? After all, preventing growing companies from moving to the United States or selling out to American investors can’t be achieved with loose change. Well, believe it or not, the amount is quite high. Managed by Swedish company EQT AB (which looks for new companies with a chance to expand globally), the fund holds about 5 billion euros, or about $5.8 billion.
Which company got the first slice of this big pie? That honor goes to Iceye, a Finnish space technology company that has already raised €1 billion. Perhaps a guarantee of future success, the Scaleup Europe Fund values the startup at 10 billion euros and was happy to contribute 300 million euros to its development.
What does Iceye do?
Iceye’s origins date back to 2012, when its founders had a vision of a synthetic aperture radar (SAR) satellite weighing less than 100 kilograms (220 pounds). Experts thought it was a pipe dream, but the company proved everyone wrong when a commercial satellite that remained true to its vision was launched in 2018. Four years later, Iceye shifted gears and entered into its first large-scale defense partnership with Ukraine after Russia began its infamous invasion of the territory.
The company is part of an entire bloc of continental space technology organizations working on space intelligence and developing more robust communications systems, independent of the United States. So, choosing Iceye is a calculated choice on the part of the Scaleup Europe Fund that could help achieve this particular goal. Generally speaking, similar European startups often had difficulty finding funding and simply wanted to set up shop in the United States or try to attract American investors. The $5.8 billion fund is expected to change all that.
It’s not as if Europe has ever really run out of ideas. It is enough to take as an example the innovations advocated by the European Commission. For example, a satellite system that automatically slows down a car when it exceeds the speed limit can be a major achievement that only requires some support in its implementation and financing before becoming a disruptive force – and this is exactly why the Scaleup Europe Fund is so important to the European technology revolution.
