EIB publishes report on scale-up gap

On 24 July 2024, the European Investment Bank published a report entitled `The scale-up gap: Financial market constraints holding back innovative firms in the European Union`. This report provides new evidence on the financial constraints faced by companies as they enter the crucial scale-up phase. The analysis follows firms that received venture capital backing and reached the scale-up phase in the European Union after 2013. By tracking these firms over time, the report examines the financing they receive and the investors they attract. The report also documents the link between financial constraints and firms’ outcomes, including relocations and likelihood to exit via initial public offering or acquisition. Finally, the report also examines the role of the EIB Group in strengthening Europe's global competitiveness and the venture capital market and makes policy recommendations to ensure the European Union stakes its place at the technological frontier:

• Complete the Capital Markets Union as a key priority to provide finance to innovative companies
• Catalyse private investment, de-risk early innovation and provide patient capital
• Develop a strong EU domestic market and focus on skills.

The report can be downloaded here:

The scale-up gap: Financial market constraints holding back innovative firms in the European Union