1、September 2025From Savings to Sovereignty Innovation and Long-Term Economic Growth in EuropePage/2 ConclusionWhat you need to knowEuropean tech has matured.A growing wave of scaleups with$100M+revenues makes Europe one of the worlds most attractive places to invest.Too much dependence on overseas ca

2、pital.Value created in European startups flows back to overseas pension funds and endowments slowing the compounding effect on Europes own economy.European tech ecosystem capital need is 0.2%of GDP.*A fraction of the 5%for defense,2.5%energy and 1.5%infrastructure investment needs.Europes pension fu

3、nds invest almost nothing in venture capital.This is not just a missed opportunity its a strategic vulnerability that undermines Europes tech sovereignty.The tide may be turning.Signs are emerging that pension funds are beginning to take a bigger role.The question is whether it will happen fast enou

4、gh to shape the next decade of growth.Pension fund allocation of 2%of AuM to VCs would transform European innovation finance.Single Market and Capital Markets Union are worthwhile long-term goals.But Pension Funds are existing infrastructure,naturally borderless,just like the European startup ecosys

5、tem itself.33 I would be more forceful in a call to action.Pension funds are growing their investing at about the same speed as corporates,which is unimpressive given they are the main value store of long-term capital in Europe,and it is their JOB to invest.So I would say something like-despite a fe

6、w leaders and some recent allocation growth,European pension funds are missing out on the opportunity to fund innovation and the future of European economic growth whilst making good returns for their beneficiaries.On p.33,theres an opportunity to sharpen the conclusions with more specific policy or