Feeling Left Out? EU Establishes Approximately €400m Blockchain & AI Fund
Brian Njuguna Nov 24, 2019 11:00
The European Commission and European Investment Fund (EIF) have launched a €2B fund to be invested in fundamental technologies. Nearly €300-€400M will be invested in blockchain and artificial intelligence (AI) amid fears that China and the US are setting a precedent in these areas.
The European Commission and European Investment Fund (EIF) have launched a €2B fund to be invested in fundamental technologies. Nearly €300-€400M will be invested in blockchain and artificial intelligence (AI) amid fears that China and the US are setting a precedent in these areas.
Sifted reports that €100m of this money will be generated by the EU and EIF, whereas the rest will be obtained from independent venture capital funds. Nevertheless, it has been acknowledged that the fund could rise to €2B ($2.2 billion) under the InvestEU program.
This undertaking is seen as an attempt to assist Europe with catching up with China and the US in fields, such as blockchain and AI.
It has been stipulated that US companies take 33% of blockchain investment, and European and Chinese companies follow them at 22% and 21%, respectively.
Nevertheless, Europe still feels it is lagging because most of the blockchain investment is channeled towards proofs-of-concept and research.
“Investing in a portfolio of innovative AI and blockchain companies will help develop a dynamic EU-wide investors community on AI and blockchain. By involving national promotional banks, we can scale up the volume of investments at a national level,” the EIF noted.
The new fund is expected to tackle the concerns that not much is spent in Europe in developing large scale blockchain and AI projects.
Image via Shutterstock
Image source: Shutterstock
