Closing the gaping hole in the capital market for EU start-ups – the role of pension funds
Pension funds play a strategic role in our societies by providing protection and peace of mind to both consumers and businesses. As large long-term institutional investors, pension funds contribute significantly to the European economy’s growth and the development of capital markets. At the same time, young, small, fast-growing and innovative companies are key to Europe’s future economy and society, and a vital piece of the puzzle for achieving the EU’s green and digital transition. Risk capital is necessary to finance the founding and growth of scale-ups and start-ups. However, Europe has a shortage of risk capital and this not only holds back the development of high-growth sectors but also the creation of a genuine Capital Markets Union (CMU).
Apostolos Thomadakis, Ph.D., is Head of Research at ECMI and Research Fellow at CEPS.