Viola Credit, a leading alternative credit manager with over $4B in AUM, announced plans to raise €300 million ($347M) for a new debt fund aimed at European technology firms seeking non-dilutive capital — a funding path that helps founders grow without giving up equity.
The fund, backed by the British Business Bank and European Investment Fund, will offer €10–15M per deal and target 50 private equity-backed companies across Western Europe and the UK.
🔹 Why It Matters
European tech has scaled rapidly over the past decade, but access to debt-based growth capital still lags behind the U.S.
This fund is designed to fill that gap — supporting companies in AI, fintech, cleantech, healthtech, and enterprise software, key sectors shaping Europe’s digital competitiveness.
“Europe is underpenetrated but producing more unicorns,” said Ido Vigdor, Managing Partner at Viola Credit.
“Equity is expensive — more founders are now turning to non-dilutive debt capital,” added Neha Mittal, Head of Europe.
🔹 Context
Europe continues to struggle in producing new billion-euro software champions — nearly all were founded more than 15 years ago, according to McKinsey & Boardwave.
Funds like Viola’s could be pivotal in helping the region scale its next generation of tech winners.
The launch follows Viola’s recent $2B global asset-backed lending fund, underscoring its expanding footprint in the private credit market.
💡 Takeaway:
As equity markets tighten and valuations recalibrate, private credit is emerging as the new growth engine for Europe’s tech sector — empowering innovation while preserving ownership.