Modern economies are increasingly reliant on innovation to improve their competitiveness and generate growth. However, the financing of innovation in Europe exhibits weaknesses that have been exacerbated by the recent economic and financial crisis, and which could have a material adverse impact on economic growth if left unchecked. This paper explains the European Investment Bank Group’s role in creating a better environment for financing business, innovation and green growth. It briefly presents to the reader the current challenges, both in relation to the availability of equity financing for earlier-stage business, innovation and green growth, but also the stark evidence of a continuing gap in bank lending. Moreover, it provides examples of ways that the financing of innovation can be improved against the backdrop of a flexible, business-oriented EU framework.