European pension funds boost tech startups

In early July 2026 the European Union highlighted the funding shortfall for deep‑tech companies, urging pension funds that collectively manage about $3.4 trillion to allocate just 1‑2 % of assets to venture capital. The EU cited rising deep‑tech activity, new unicorns and a surge in large financing rounds, while noting that early‑stage biotech financing remained weak and that most large biotech deals were still led by U.S. buyers. A draft “Biotech Act” and programs such as Poland’s PFR DeepTech were presented as mechanisms to channel more pension capital into European innovation.

By the end of the month, the United Kingdom announced a concrete step: a consortium of pension schemes pooled roughly £1 billion into a Scale‑Up Fund, following the 2025 Mansion House Compact that committed pension providers to increase unlisted equity exposure. Managed by Nest, Railpen and supported by the British Business Bank, the fund targets high‑growth British science and technology firms, with a goal of directing at least 5 % of default pension portfolios to venture assets by 2030. The initiative aims to close the UK’s “scale‑up gap” and potentially unlock up to £50 billion of growth capital for the domestic economy.

Together, these actions illustrate a broader European push to mobilise retirement savings for venture‑capital investment, seeking to retain talent, reduce reliance on foreign capital and foster a home‑grown deep‑tech ecosystem.