ABP commits 1 billion euros to boost European tech innovation
ABP, the Netherlands’ largest pension fund with assets of €568 billion, has announced plans to invest €1 billion in fast-growing European technology companies over the next three years. The first step is a €250 million contribution to the Scaleup Europe Fund, which focuses on strategic sectors such as artificial intelligence, quantum technology, and medical technology. The fund, targeting a size of €5 billion, aims to keep European innovation and jobs within the region by providing growth capital to companies that might otherwise move abroad.
The Scaleup Europe Fund is an initiative of the European Commission and a group of institutional investors, including ABP. It addresses a critical gap in the European financing market by offering late-stage capital for technology companies needing €100 million or more for international expansion. EQT, a Swedish asset manager, will manage the fund independently. The fund targets sectors vital to Europe’s future competitiveness, including AI, quantum technology, energy, space, and medical technology. Prince Constantijn, special envoy at Techleap, hopes more institutional investors will support the growth of European tech companies.
ABP’s investment aligns with its broader strategy to diversify risk. The pension fund previously reduced its investments in US government bonds and technology companies to limit currency risk. Board chair Harmen van Wijnen emphasized that the investment aligns with ABP’s responsibility to provide good pensions while pursuing returns from innovative companies. The €250 million represents about 0.04% of ABP’s total portfolio, reflecting limited exposure. ABP plans to invest €1 billion over the next three years, depending on market conditions and opportunities.
The investment also aligns with the recommendations of Peter Wennink, former CEO of ASML. In his report, *The Road to Future Prosperity*, Wennink identifies four key sectors for Europe’s future: digitalization and AI, security and resilience, energy and climate technology, and life sciences and biotechnology. These sectors overlap with the Scaleup Europe Fund's focus. Wennink warns that Europe is losing ground to the US and China in critical technologies and calls for targeted investment and reforms to stimulate economic growth.
ABP’s investment and the Scaleup Europe Fund represent a step toward strengthening European technological autonomy. The EU Startup and Scaleup Strategy aims to make Europe the best place to build and grow technology companies, with 26 actions including simplified regulations, better access to financing, and faster market entry. ABP’s contribution helps achieve these goals by providing capital to companies that might otherwise move abroad.