4 ms·

Isn't the point of the funding to be used to help achieve the goal in the first place

• londons_explore 4y ago
  Investors will be willing to bridge the gap, if they know their investment will be repaid by the EU. And investors will hopefully do a better job of making sure the company actually has useful outputs than a bunch of bureaucrats.
  • VWWHFSfQ 4y ago
    It's always been my understanding that VCs in Europe are extremely risk averse. The whole point of this EU funding is because the endeavor is so risky. So why would you withhold the funding with the expectation that VCs are going to pick it up in the meantime and then just give it to them later. It doesn't really make any sense. The funding is supposed to fund the research.
    • londons_explore 4y ago
      Well the risk is much lower if the EU government is the one promising to repay your investment, then a tiny startup... So you are more likely to get money from risk averse investors. The real problem is that in a high interest rate world, the EU will need to pay substantially more money later than they have to pay now for the investor to think it is a good plan.