Route-to-Funding

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The EU Chips Act is central to strengthening Europe’s semiconductor capabilities—mobilizing over €43 billion in public investment and expected to attract substantial private capital by 2030. But as demand for innovation accelerates, Europe needs complementary and alternative funding channels that can move quickly and align with both public goals and market opportunities.

The Chips Fund aims to close financing gaps through a mix of equity and debt instruments. It operates in conjunction with innovation-focused initiatives and provides opportunities for early-stage fabless startups to access funding that is de-risked through public participation.

Pilot lines across different technology domains, combined with the EU Chips Design Platform, give fabless startups access to cloud-based design tools, IP libraries, EDA resources, and opportunities for prototyping. This helps companies advance their designs faster and shorten the route from concept to market.

The concept of a “Chips Act 2.0” is already being discussed. This could broaden the scope of support to include not just fabs, but also chip design, production equipment, materials, and supporting technologies—opening even more funding channels for the wider ecosystem.

While Europe’s semiconductor-focused venture capital scene is still developing, several firms are particularly active in deep-tech and chip-related investments:

Venture Capital FirmFocusHigh-Tech Gründerfonds (HTGF)Early-stage deep-tech investor with strong links to industrial and semiconductor startups.Runa CapitalGlobal VC with deep-tech investments, including infrastructure and advanced computing.LakestarPan-European investor backing transformative technology ventures, including semiconductor-related startups.Balderton CapitalLondon-based investor with an interest in high-growth technology companies across Europe.AtomicoGrowth-stage VC with a focus on scaling European technology companies, including hardware and semiconductor innovations.  

Corporate investors are playing an increasingly important role in accelerating semiconductor innovation:

• Intel Capital – Investing globally in semiconductor, AI, and hardware startups.
   
• Bosch, Infineon, NXP, STMicroelectronics – Strategic investors with deep interest in strengthening supply chains and new chip capabilities.
   
• ASML, ASM, Zeiss, Air Liquide – Key technology providers exploring investments in enabling technologies, materials, and equipment for semiconductor production.
   

These corporate players often combine investment with strategic partnerships, giving startups not just capital, but also access to industrial expertise and market channels.

Concept

Carson Bradbury is exploring the creation of an EIS-style side-car fund for his other business interests—a private investment vehicle inspired by the UK’s Enterprise Investment Scheme—that would operate alongside the EU Chips Act. The goal is to combine the advantages of public programs with private agility, while offering corporate partners early access to emerging technologies.

How It Could Work

1. Fund Structure – Blended capital targeting fabless semiconductor and chip-enabling technology startups.
    
2. Syndication – Co-investment from corporates and public initiatives to increase total capital and reduce individual risk.
    
3. Incentives – Tax benefits for private investors, making semiconductor investments more attractive.
    
4. Deal Flow – Sourcing startups through the EU Chips Design Platform and industry networks to ensure high-quality, validated opportunities.
    

Benefits

• Accelerates Scale-Up – Combining public funding with corporate support shortens time to market.
   
• De-Risks Investment – Early validation through design platforms and pilot lines reduces technical risk.
   
• Builds Ecosystem Synergy – Encourages collaboration between startups, corporates, and policymakers.
   
• Attracts New Capital – Tax incentives draw in investors who might not otherwise engage in the semiconductor sector.

The EU Chips Act provides a strong foundation for Europe’s semiconductor ambitions, but achieving full impact requires additional funding pathways. Public-private blending, venture capital, corporate investment, and innovative vehicles like an EIS-style side-car fund can work together to build a thriving, sovereign semiconductor ecosystem. By combining capital, expertise, and infrastructure, Europe can go beyond resilience—and move toward true leadership in the global semiconductor market.