The European Investment Fund (EIF) is the part of the EIB Group that specialises in small and medium-sized companies. It is one of the largest backers of venture capital in Europe, yet most founders never deal with it directly.
A fund of funds
The EIF mostly puts money into other funds and guarantees bank loans. When a European venture fund raises capital, the EIF is often a cornerstone investor. That means it shapes which funds exist, and so which startups get backed.
Understanding the EIF explains a lot about why European venture money flows the way it does.