The fund of funds aims to make more venture capital available to entrepreneurs in the Hellenic republic and will support tech transfer vehicles and accelerator funds.

Greece’s Ministry of Economy and Development has signed an agreement with the European Investment Fund (EIF), ), the investment arm of EU agency European Investment Bank, to establish a €260m ($270m) fund of funds.

The vehicle will support domestic early to growth-stage companies through third-party funds and will also back commercialisation and accelerator funds.

The fund is supported by the European Fund for Strategic Investments (EFSI) and the European Structural and Investment Funds (ESI). The initiative marks the first time that resources from EFSI and ESI has been combined in Greece.

The European Investment Fund will provide €60m – of which €10m comes from EFSI-supported resources – while €200m is being made available through the European Regional Development Fund-supported Operational Programme Competitiveness, Entrepreneurship and Innovation 2014-2020.

The Greek government and EIF hope the fund will attract additional institutional investors.

Dimitris Papadimitriou, Greece’s minister of economy and development, said: “This fund of funds is transformational for Greece, both in terms of size and approach. It will support capital formation across the equity value chain. By partnering with EIF we are confident that the ramp up and implementation of this Fund of Funds shall be delivered in the best possible way.”