The European Union announced a new partnership with leading venture capital firms on Monday, aiming to accelerate investment in tech innovation across Europe. The initiative, known as the Trusted Investors Network, is designed to address concerns that Europe's tech sector is falling behind the United States and China.

Seventy-one investors from across Europe, collectively managing over €90 billion ($98 billion) in assets, have committed to the initiative. The focus will be on driving investment into European deep-tech companies, an area considered critical for the region's future economic competitiveness.

This move comes on the heels of a report by former European Central Bank chief Mario Draghi, who recommended that the EU ramp up its investments in technology to stay competitive globally. The Draghi report, published last month, called for "far bigger and quicker investments" to keep Europe in step with the innovation seen in the United States and China.

"By joining forces with venture capital, we are responding to the urgent challenges laid out in the Draghi report that call for bold action to ensure Europe's competitiveness in critical technologies," said EU Commissioner Iliana Ivanova in a statement.

The announcement follows data from July that showed a surge in U.S. venture capital funding, driven by deals in artificial intelligence. The U.S. has seen its highest levels of venture capital investment in two years, further widening the tech gap with Europe.