Bridging the Valley of Death: Financing the Future

Bridging the Valley of Death: Financing the Future

Executive Summary

Great ideas die without funding. The bioeconomy faces two critical „valleys of death” where investment dries up. The EU is mobilizing public and private finance to build a bridge from the lab to industrial scale.

Key Metrics

  • EUR 10 billion: Target value for the ‘Bio-based Europe Alliance’ collective purchasing by 2030.
  • 2.9: Indirect jobs created for every job in the European bioeconomy industry.

Core Content

The Challenge

Bioeconomy startups face a double jeopardy:
1. The First Valley: Moving from demonstration to first commercial production. It’s risky and expensive.
2. The Second Valley: Scaling up to full industrial production. This requires massive capital (CAPEX) and certainty that someone will buy the product.

The Solution

To cross these valleys, the strategy proposes a multi-pronged financial attack:
* De-risking Investments: Using EU funds (like the European Competitiveness Fund) to share the risk with private investors.
* Bio-based Europe Alliance: A voluntary group of corporations committing to buy EUR 10 billion of bio-based products, guaranteeing a market for new producers.
* Bioeconomy Investment Deployment Group: Bringing together the EIB, national banks, and private investors to create a pipeline of „bankable” projects.

The Impact

By providing both the capital to build factories and the certainty of future sales, these measures aim to unlock private investment. This will allow Europe to build the biorefineries and biomanufacturing plants needed to replace fossil-based industries at scale.

Source: EU Bioeconomy Strategy

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