Shiva Dustdar (EIB Group): Powering Europe’s Scale-Ups

Shiva Dustdar, director of EIB Group Relations in Luxembourg, explains the bank’s role in financing innovation, supporting European scale-ups and strengthening links with Luxembourg’s growing technology ecosystem.

What role does the EIB Group play in Europe’s economic development?
The EIB Group combines two institutions: the European Investment Bank and the European Investment Fund. Both operate as instruments of the European Union, owned by the twenty seven member states and headquartered in Luxembourg since 1957. Our mission centres on strengthening Europe’s long term competitiveness through strategic financing. Last year marked a record with one hundred billion euros deployed across key priority sectors. Climate action forms a central pillar, with sixty percent of our activity dedicated to climate technology and energy transition. Digital transformation, technological sovereignty and security also shape our investment priorities because Europe must reinforce resilience in a challenging geopolitical environment. Another major dimension involves support for small and medium enterprises through the European Investment Fund. The European economy relies heavily on SMEs and innovative companies, yet Europe struggles less with creating startups than with helping them scale. Through initiatives such as the European Tech Champions Initiative, the EIF invests in venture capital funds capable of supporting companies during their most capital intensive phase. Larger funds can deliver investment tickets above one hundred million euros, still relatively rare across Europe. Without sufficient financial depth, promising companies often move to the United States or other global markets. Strengthening Europe’s scale up ecosystem therefore remains a key strategic objective. Early results already demonstrate strong momentum, with several unicorns emerging from funds supported through this initiative.

“Luxembourg continuously reinvents itself.”

How has the EIB Group supported Luxembourg’s economy so far?Many observers underestimate the scale of EIB activity in Luxembourg despite our headquarters located here. Over the last five years, financing into the national economy reached roughly six hundred million euros. A significant share includes three hundred million euros allocated to SES, Luxembourg’s flagship satellite operator and a strategic player within the global space connectivity sector. Beyond large corporations, our objective also includes supporting innovative companies capable of shaping emerging industries. Recently we signed venture debt financing with OQ Technology, a startup developing secure connectivity solutions combining 5G and Internet of Things technologies. This financing provides patient capital allowing the company to accelerate expansion while maintaining strategic autonomy. Another example involves Artec 3D, a Luxembourg based scale up specialising in advanced three dimensional scanning technologies. Our fifteen million euro venture debt facility supports international growth and strengthens technological leadership. Venture debt represents an important instrument because innovative firms frequently reach a stage where equity financing alone cannot sustain development while traditional banks still hesitate to provide loans. The EIB Group can intervene earlier thanks to risk sharing arrangements with European institutions. Public infrastructure also forms a key component of our engagement. Financing projects such as the tram network, railway infrastructure and sustainable urban development improves mobility, energy efficiency and social inclusion across Luxembourg.

How can stronger connections develop between the EIB Group and Luxembourg’s innovation ecosystem?
My new role focuses precisely on strengthening those connections. After more than twenty three years at the EIB working on innovation financing across Europe, I have always recognised the strong potential within Luxembourg’s ecosystem. The country repeatedly demonstrates its capacity to reinvent itself, whether through financial services, space activities or emerging technology sectors. Relationships play an important role here and my objective involves making the EIB Group more visible and easier to access for entrepreneurs, investors and policymakers. Advisory services represent one of the most valuable yet least known resources available. Hundreds of engineers and economists within the EIB analyse projects worldwide and provide benchmarking that few organisations can replicate. Their expertise helps governments and companies evaluate strategies, compare technologies and structure major infrastructure initiatives. Luxembourg already collaborated with us on several topics including circular economy, space development and high performance computing. Looking ahead, sectors such as cybersecurity, quantum technologies, artificial intelligence and health technologies offer strong potential, particularly when combined with the country’s expanding space ecosystem. Through initiatives such as TechEU, the EIB committed seventy billion euros to support Europe’s technological autonomy before the end of twenty twenty seven, potentially mobilising more than two hundred and fifty billion euros in total investment.