LUXEMBOURG, Oct 7 (Reuters) - The European Investment

Bank proposed on Monday to help close the funding gap and retain

the most innovative start-up companies looking to grow in Europe

through support for the EU venture capital and private equity

markets.

The initiative, presented by the bank to finance ministers

at a meeting in Luxembourg, is part of the EU's push to develop

its capital markets and be attractive for innovative start-ups

that now often relocate to the United States where finding

financing is easier.

The EIB said in a statement that it would finance the scale

up of European unicorns -- companies with unique ideas and

growth potential -- by expanding the European Tech Champions

Initiative, a fund of funds launched last year that provides

late-stage capital to European innovators.

The EIB, which is owned by the EU's 27 governments, also

offered to boost equity and venture debt investments and create

a new dedicated fund for financing acquisitions and listing of

tech start-ups by European firms.

"We're talking about ensuring that European companies,

technologies that are born in Europe, stay in Europe, and that

we invest in Europe's champions, in Europe's unicorns, that we

reinforce Europe's competitiveness through a stronger capital

market," EIB president Nadia Calvino said.

The funding strategy is also meant to help Europe stay

competitive against China and the United States in new,

climate-friendly technologies the EU needs to meet its ambitious

climate goals of zero net CO2 emissions by 2050.

"There's unanimous agreement at the technical level on the

need to deepen Europe's capital markets and to reinforce the

integration of our capital markets," Calvino said. "This will

reinforce Europe's competitiveness and fund European successful

companies. There is also political momentum right now."