Dutch pension fund ABP to invest €1 billion into fast-growing European tech firms

The Netherlands’ largest pension fund, ABP, will invest a total of one billion euros into start-ups and rapidly expanding European companies with the technology sector over the next three years. It will start with a 250 million-euro commitment to a European find for promising technology firms called the Scaleup Europe Fund, FD reports.

The Scaleup Europe Fund was recently set up by the European Commission with several institutional European investors in order to aid technology companies. The funds’ investment interests include quantum technology, energy, space, artificial intelligence, and medical technology.

“Europe possesses abundant talent, knowledge, and technology. Yet successful growth companies still too often leave for other markets in search of financing,” according to ABP chairman Harmen van Wijnen. “Greater availability of capital can help keep innovation, economic value, and employment inside Europe.”

The move was welcomed by Prince Constantijn, who is the special envoy for the start-up organization Techleap. “The more such examples follow, the greater the chance that the next generation of European tech companies can actually continue to grow here.”

Last summer it was revealed that the pension fund was pulling capital out of the U.S. The money had been held there in U.S. Treasury and technology stocks. According to the ABP, it is more advantageous to hold government bonds issued by euro-area countries than bonds in foreign currencies. The sale of technology shares was reportedly done to avoid return swings.

“Our first responsibility is to deliver a sound pension for our participants,” van Wijnen added. “This investment is consistent with that duty.”

The commitment is in accordance with earlier advice to the government from former ASML chief executive Peter Wennink. He had argued that Europe needs to prevent falling behind in technological developments by improving its investment climate. According to him, the priority sectors are digitalization, including AI, security and resilience, energy and climate technology, and life sciences and biotechnology.