The EU has established a new fund in order to not lag behind countries like the United States and China on blockchain and artificial intelligence (AI) advancements. 400 Million Euro Blockchain Fund Launched by EU to Remain at Par with the US & China.
The European Investment Fund (EIF) is an EU agency that indirectly funds SMEs. It stated in a blog post that €100 million (over $110 million) was put together by it and the European Commission for a devoted investment structure. This fund is to be allocated to AI and blockchain ventures through venture capital funds or other investors.
With the base for this project already set through initial funding, the EIF expects €300 million (around $331 million) funding from private investors. The EIF also expects the funding to further increase starting next year as national promotional banks are also capable of co-investing through EIF’s mechanism.
A report in Sifted states that through the InvestEU initiative, the funding can eventually reach around €2 billion (around $2.2 billion). Further adding that the EU already invests hugely in blockchain projects and the estimated investment for this year is $674 million. The majority of this amount has been invested in research activities and proof-of-concept. The United States comes first in this category with a spend estimation of $1.1 billion, and China second with $319 million. These figures were taken from the International Data Corporation.
The new funding is to address the concern that the EU has not been spending enough towards implementing projects on a larger-scale.
As per the EIF, investing in AI innovation and blockchain domains will only boost the EU in developing an EU-nations investors community based on AI and blockchain platforms. However, by including the national promotional banks, the EIF expects to increase the investment volume at the national level.