There is a proposal in the European Union to provide a $3.9 billion financial support to the startups in the “Valley of Death.” This is with the objective of encouraging entrepreneurs and investors to translate their innovative ideas into a reality, and one day topple the tech giants throughout China and the United States of America.
Traditional capital venture firms are often not interested in investing in startups that are based on innovation and risky research to turn the scientific breakthrough into a consumer product, and this is what the European Commission’s Director for Research and Innovation, Jean-Eric Paquet believe.
He further said at the Slush technology conference in Helsinki, and it’s “the famous innovation value of death.”
This is a massive initiative to reduce the investment gap, which is always there in the Valley of Death. The aim of the proposed European Union funds to provide grant and equity to young startups those who are in the initial stage of research, it is so-called deep technology. The diverse technology sectors include Artificial Intelligence, Biotechnology, and Manufacturing, Jean-Eric further said at the conference.
This project of financial support from the European Union will be formally launched in the year 2021, and this will be governed by the European Innovation Council. However, it is expected that the final size of the investment will be changed in accordance with the budget talks happening with the member states of the European Union.