COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The EU Startup and Scaleup Strategy Choose Europe to start and scale
Date: 2025-05-28
Institutions: Directorate-General for Research and Innovation, European Commission
Subjects: EU growth strategy, aid to undertakings, business start-up, company growth, competitiveness, innovation, scale-up company, single market, start-up, technical barriers to trade

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 28.5.2025  COM(2025) 270 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The EU Startup and Scaleup Strategy        Choose Europe to start and scale {SWD(2025) 138 final}  
 
 
1.  INTRODUCTION 

Context 

It  is  time  for  Europe  to  become  a  startup  powerhouse.  Our  competitiveness  and 
ultimately prosperity depend on it. A thriving startup and scaleup ecosystem can transform 
Europe’s economy – by increasing productivity, creating quality jobs and attracting talent and 
investments.  It  can  also  play  a  key  role  in  the  ambition  set  in  President  von  der  Leyen’s 
Political Guidelines to boost productivity, tech sovereignity and put innovation at the heart of 
our economy. It is a key part in delivering on the Competitiveness Compass’ call to restart a 
virtuous innovation cycle. 

Europe’s  startups  and  scaleups  already  drive  innovation  and  creativity  across  our 
economy. The 35,000 early-stage companies across our Union, as well as the 3,400 additional 
tech companies in their growth stage are a main source of new products and services.1 They 
excel  in  providing  innovative  solutions  to  client  challenges,  targeting  niche  or  emerging 
markets and addressing problems often overlooked by larger companies. They are engines of 
disruptive  innovation  and  create  new  markets  where  the  EU  can  assume  global  leadership. 
They  also  stimulate  innovation  in  larger,  established  companies  through  collaboration, 
competition and acquisition.  

A  thriving  startup  and  scaleup  ecosystem  in  Europe  is  also  essential  for  our  wider 
strategic  autonomy  and  resilience.  European  startups  and  scaleups  strengthen  the  EU’s 
industrial capacity and productivity and help reduce dependencies in key sectors and  critical 
technologies. Crucially, they also play a vital role in providing jobs for Europeans, with three 
million  jobs  created  in  the  past  decade  by  tech  startups  only.  This  transformation  can  be 
further amplified by the gradual integration of candidate countries, extending the reach of the 
Union’s competitive ecosystem. 

The diagnosis: Strong foundations, enduring challenges 

Startups  and  scaleups  have  solid  foundations  to  thrive  in  the  EU,  including  a  highly 
skilled  workforce  and  a  stable  regulatory  system.  The  EU  is  a  global  economic 
powerhouse  with  leadership  in  research  and  innovation,  a  single  market  of  450  million 
consumers,  effective  and  fair  competition,  substantial  household  savings,  a  predictable 
investment and business environment, founded on the rule of law. Tech entrepreneurship is on 
the rise, with more startups launched annually than in the US and a fourfold increase in early-
stage companies since 2015.2  

EU  and  national  policies  have  significantly  improved  the  startup  ecosystem.3,4  Since 
2007,  EU-funded  startups  developing  cutting-edge  technologies  have  raised  over  EUR  70 
billion  in  venture  capital  and  generated  over  EUR  500  billion  in  enterprise  value.  The 
European  Innovation  Council  (EIC),  launched  in  2018  with  a  EUR  10.1  billion  budget, 

1 Atomico (2024), State of the European Tech 2024. 
2 Dealroom – Accelerating Europe report, 2025 
3 For example, the Europe Startup Nations Alliance (ESNA) whose mission is to identify, share and implement 
best  policy  practices  for  startups  and  monitor  member  state  progress  in  implementing  them  under  national 
competencies. 
4 European Commission - Europe's next leaders: the Start-up and Scale-up Initiative, COM(2016) 733 final, 22 
November 2015; the Startup Europe initiative (https://digital-strategy.ec.europa.eu/en/policies/startup-europe). 

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supports disruptive innovations from research to scaling. Today, the EIC Fund is one of the 
largest  deep-tech  venture  capital  funds  in  the  EU,  aiming  to  raise  up  to  EUR  20  billion  for 
startups  by  2027.  InvestEU,  the  EU's  largest  program  for  supporting  companies  at  all 
this  by  fostering  seed  capital,  growth,  scale-up, 
development  stages,  complements 
manufacturing  and  deployment.5  Through  partners  like  the  European  Investment  Fund, 
InvestEU is key to developing Europe's venture capital ecosystem, while the European Tech 
Champions Initiative has successfully pooled public funds to support European VC funds. 

But  starting  and  scaling  up  innovative  companies  in  Europe  remains  difficult  today. 
From transitioning from  lab to  market,  to accessing capital  and talents,  to a successful  exit, 
European  startups  and  scaleups  still  face  significant  challenges.  The  market  remains 
fragmented,  with  regional  imbalances,  and  EU  efforts  to  translate  research  into  marketable 
products  and  scale  businesses  are  hindered  by  an  incomplete  Single  Market  –  including  for 
capital-, regulatory fragmentation, lower risk appetite from investors, slow innovation uptake 
and underutilised public procurement. 

European  startups  often  encounter  two  ‘valleys  of  death’  (Figure  1).  The  first  occurs 
when  innovations  fail  to  become  marketable  products,  while  the  second,  particularly 
challenging in Europe, happens when companies struggle to scale. Between 2008 and 2021, 
nearly  30%  of  European  ‘unicorns’6-  relocated  outside  the  EU,7  and  only  8%  of  global 
scaleups  are  based  in  Europe.  Europe  risks  falling  behind  in  strategic  technologies,  as  it 
struggles to retain and attract high-potential technology scaleups. 

/Figure 1: Simplified illustration of the startup double valley of death 

5 Around 40% of the EUR 26.2 bn InvestEU guarantee is used for support of high-risk venture debt, quasi 
equity, and equity investment made by implementing partners under risk-sharing arrangements with the EU 
budget.  
6 A unicorn is a privately held company – startup – with a market valuation of EUR 1 billion or above.  
7  “In  search  of  the  EU  unicorns  –  what  do  we  know  about  them?”  JRC  technical  report,  2022 
https://publications.jrc.ec.europa.eu/repository/handle/JRC127712 

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The vision: Making the EU a startup and scaleup powerhouse 

The EU Startup and Scaleup Strategy aims to make Europe the best place in the world 
to launch and grow global technology-driven companies, including deep tech companies. 
It focuses on helping innovators, founders and investors to Choose Europe! by improving the 
conditions  for  startups  and  scaleups,  enabling  them  to  capitalise  on  new  geopolitical 
opportunities and reducing the reasons to relocate outside the EU. This is crucial for strategic 
technologies,  such  as  for  example  artificial  intelligence,  quantum  technologies,  advanced 
semiconductors, medical technology, biotechnology, bioeconomy applications, clean tech and 
energy (including nuclear technology), water and blue tech, security, defence, space, robotics 
and advanced materials.8 

Building  on  the  Commission’s  Single  Market  Strategy9  and  other  efforts  to  improve  the 
business environment, the strategy focuses on enhancing access to Europe’s internal market, 
which  has  huge  potential  to  drive  innovation  and  keep  European  companies  competitive 
globally.  It  allows  startups  and  scaleups  to  grow  and  reach  the  scale  needed  to  compete 
effectively. 

To  achieve  this,  the  strategy  seeks  to  shift  the  European  economy  towards  a  more 
entrepreneurial, innovative model. It aims to create a dynamic ecosystem where bold vision 
and calculated risk-taking are encouraged, and failure is seen as a necessary step to progress. 
The  strategy  will  drive  policy  and  regulatory  changes  across  the  EU,  with  the  Commission 
leading by example. The aim is to pave the way for a next generation of European startups, 
centaurs and unicorns who have the potential to develop into global tech leaders. 

The Strategy sets out a number of legislative, policy and financial support measures in 
support  of  European  startups  and  scaleups,  at  both  EU  and  Member  States  level.  Its 
impact  will  be  measured  by  1)  the  increase  in  the  number  of  startups  in  the  EU,  2)  the 
increase in the number of centaurs10 in the EU and 3) the increase in the number of unicorns 
in the EU, and how these compare with the EU’s global competitors. 

The Strategy is structured according to different needs  that an innovative company may 
face  through  its  lifecycle,  from  starting  up  to  scaling  up  to  maturing  and  succeeding  in  the 
EU: 

1) innovation-friendly regulation; 

2) better finance; 

3) fast market uptake and expansion; 

4) support for the best talent; and 

5) access to infrastructure, networks and services.  

The Strategy is accompanied by a Staff Working Document. 

8 Including any dual-use applications. 
9 Single market strategy 
10 A centaur is a privately held company – startup – with a market valuation of EUR 100 million or above 

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2.  INNOVATION-FRIENDLY REGULATION 

Europe  is  recognised  for  its  strong  regulatory  standards,  providing  stability  and  trust 
for EU and non-EU investors alike. The EU’s regulatory framework also ensures safety and 
clarity  for  startups,  fostering  innovation  and  entrepreneurship.  At  the  same  time,  the 
Commission  is  actively  reducing  administrative  burdens,  aiming  for  a  25%  reduction  for 
companies and 35% for SMEs, improving agility. The Single Market Strategy11 is addressing 
fragmentation  and  obstacles  to  the  free  movement  of  goods  and  services,  offering  a  solid 
foundation for growth.  

To  remain  competitive  in  the  fast-evolving  global  tech  landscape,  the  EU  faces  several 
challenges. Regulatory fragmentation across Member States makes it difficult for startups and 
scaleups  to  operate  efficiently  within  the  Single  Market.  Different  national  legal  systems, 
especially in areas like taxation, company law and securities law, create barriers for investors, 
limiting the flow of capital. Startups also face difficulties navigating varying labour laws and 
high  failure  costs,  adding  uncertainty  for  both  founders  and  investors.  Moreover,  the  slow 
pace of  regulatory  approval  for new  technologies, alongside existing  regulatory frameworks 
that do not adapt quickly to innovation, hinders the uptake of disruptive products and services.  

To  address  these  challenges  the  EU  must  enhance  its  regulatory  agility.  The  upcoming 
European Innovation Act and the 28th regime will help startup and scaleup companies develop 
across the EU. The adoption of the Insolvency Directive will simplify insolvency procedures, 
benefiting  also  startups  by  reducing  complexity  and  costs.  The  forthcoming  Tax 
Recommendation,  as  part  of  the  Clean  Industrial  Deal,  will  recommend  treating  favourably 
the immediate expensing and accelerated depreciation and providing incentives for tax credits 
supporting 
investment  activities  by  startups  and  scaleups.  Additionally,  regulatory 
sandboxes12  can  provide  startups  with  real-world  testing  environments,  enabling  them  to 
refine  their  innovations  while  regulators  can  better  understand  the  needs  of  emerging 
innovations  and  adjust  rules  to  better  respond  to  these  challenges.  Sandboxes  therefore  not 
only  help  startups13  but  also  foster  closer  collaboration  with  authorities,  building  trust  and 
attracting  investment  and,  when  applied  to  place-based  innovation,  they  can  drive  local 
development at territorial scale.  

The Commission will propose country-specific recommendations through the European 
Semester process to improve innovation policy and simplify the business environment in 
Member  States.  The  Commission  will  continue  to  strengthen  the  Member  States’ 
administrative  capacity  through  the  Technical  Support  Instrument.  Additionally,  the 
Commission will work towards speeding up the EU’s standardisation processes to keep pace 

11 The Single Market: our European home market in an uncertain world, COM(2025) 500 final  
12  Council  Conclusions  on  Regulatory  Sandboxes  and  Experimentation  Clauses  as  tools  for  an  innovation-
friendly,  future-proof  and  resilient  regulatory  framework  that  masters  disruptive  challenges  in  the  digital  age 
2020/C 447/01, OJ C 447, 23.12.2020, p. 1.  
13  For  example,  over  60%  of  fintech  startups  that  participated  in  regulatory  sandboxes  managed  to  attract 
investment  within 
(https://www.jbs.cam.ac.uk/faculty-
of 
research/centres/alternative-finance/publications/early-lessons-on-regulatory-innovation-to-enable-inclusive-
fintech/) 
(https://www.bis.org/publ/work901.pdf) 

  and  by  participating 

increased  by  50% 

to  attract  funding 

their  chances 

in  sandboxes 

six  months 

trials 

their 

first 

the 

4 

 
 
 
 
 
with  technological  advancements,  ensuring  that  market  entry  and  expansion  for  startups 
becomes smoother and faster across the Single Market.  

Actions 

•  The Commission will propose a European 28th regime which will provide a single 
set of rules for companies. It would include an EU corporate legal framework, based 
on digital-by-default solutions, and will help  companies  overcome barriers in  setting 
up,  scaling  up  and  operating  companies  across  the  Single  Market.  To  do  so,  it  will 
simplify applicable rules and reduce the cost of failure, by addressing specific aspects 
within relevant areas of law, including insolvency, labour and tax law. It will explore 
the  possibility  of  enabling  companies  to  establish  in  Europe  more  rapidly,  ideally 
within 48 hours (Q1 2026). 

•  The Commission will propose the European Business Wallet as the cornerstone of 
doing  business  simply  and  digitally  in  the  EU,  establishing  a  digital  identity  for  all 
economic  operators  and  providing  a  framework  for  sharing  verified  data  and 
credentials  to  enable  seamless  digital  interactions  between  economic  operators  and 
public administrations across the Union (Q4 2025). 

•  The Commission will propose a European Innovation Act which will also promote 
regulatory  sandboxes,  to  allow  innovators  to  develop  and  test  new  ideas.  It  will 
contain a common legal definition and basic principles regarding the establishment of 
regulatory  sandboxes,  including  cross-border  or  place-based  regulatory  sandboxes, 
while ensuring sector specific needs (Q1 2026). 

•  The  Commission  will  propose  a  voluntary  ‘Innovation  Stress  Test’  by  Member 
States, consisting of recommendations for Member States to systematically assess the 
potential impact on innovation when preparing new or revised national legislation (Q1 
2026). 

•  The  Commission  will  put  forward  proposals  to  reduce  regulatory  burdens  in 
strategic  sectors  through  forthcoming  sectoral  legislative  and  non-legislative 
proposals,  such  as  the  EU  Biotech  Act,  the  EU  Bioeconomy  Strategy,  the  EU  Life 
Science Strategy, the Advanced Materials Act the Medical Devices Regulation and the 
Omnibus Defence Simplification Package (as of 2025).  

•  The  Commission  will  revise  the  Standardisation  Regulation  to  make  standard-
setting  processes  faster  and  more  accessible,  particularly  for  SMEs  and  startups  (Q2 
2026). 

•  The  Commission  will  launch  a  study  to  assess  the  extent  to  which  corporate 
restructuring  is  organised  and  regulated  at  EU  and  Member  State  levels  creates 
obstacles for startups, scaleups and innovative companies for business adaptation and 
innovation in different sectors of the economy, based on firm-level data (2026). This 
study  will  support  the  implementation  of  the  Quality  Jobs  Roadmap  and  the  Fair 
Labour Mobility package. 

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3.  BETTER FINANCE FOR STARTUPS AND SCALEUPS 

European venture capital (VC) investments have performed strongly, with returns now 
on  par  with  or  surpassing  non-EU  counterparts.14  The  EU  public  sector  has  been 
instrumental  in  boosting  the  VC  market,  with  initiatives  like  the  InvestEU  Fund,  which  has 
mobilized  private  capital  for  investments  in  SMEs  and  scaleups.  The  European  Innovation 
Council (EIC) has supported deep tech startups  with  grants  and equity investments  of up to 
EUR 30 million and the European Tech Champions Initiative has successfully pooled public 
funds to support European VC funds. The European Investment Fund (EIF) has catalysed the 
growth of the venture capital industry over the last 30 years, deploying up to EUR 7 billion 
per  year  in  funds  all  across  Europe.  These  experiences  show  the  benefits  of  combining 
support  through  financial  intermediaries,  as  done  under  InvestEU,  which  help  develop  VC 
ecosystem  as  a  whole,  with  direct  equity  investments  carried  out  by  the  EIC  Fund,  which 
enable strategic decisions in the selection of companies to invest, in the investment partners 
and  in  the  investment  guidelines  and  with  shared  management  funds,  mainly  the  European 
Regional  Development  Fund,  which  acts  as  catalyst  for  attracting  additional  private  funds 
through  grants  and  financial  instruments.  Foreign  VC  investments  in  European  companies 
have  been  increasing  since  2016.15  The  EU  has  a  growing  number  of  business  angels,  in 
particular successful founders that are willing to re-invest in, and mentor, the new generation 
of startups.16  

Yet,  the  EU  financial  system  remains  predominantly  bank-centred,  with  bank  assets 
totalling 300% of EU GDP, compared to just 85% in the US. 17 The small size of the EU VC 
market  is  driven  by  a  lack  of  equity  culture,  risk  aversion,  and  the  fragmentation  of  capital 
markets  due  to  varying  national  rules.18  This  regulatory  fragmentation  includes  differing 
insolvency,  corporate  laws,  tax  systems,  and  public  markets  that  limit  opportunities  to  exit 
investments.19 There are vast geographic differences in the availability of such financing, with 
some Member States still facing significant issues across all fundraising stages. The level of 
cross-border  investments  remains  low,  which  also  dampens  growth  perspectives  and  may 
push innovative companies to seek larger markets and simpler financing outside Europe. 

A clear funding gap persists when it comes to the scaleup financing of high-risk, capital 
intensive  technologies  requiring  investments  above  EUR  100  million.20  The  lack  of 
broader accessibility of scale up or growth capital poses several risks for the EU, namely  i) 
the loss of companies that Europe has nurtured in the initial growth phase, and ii) the loss of 
critical technologies that are essential to our future prosperity. A European scaleup fund with 
critical mass, operating at market conditions, is needed to fill this gap and strengthen the EU’s 
economic  security  and  tech  sovereignty.  In  addition,  as  announced  in  the  Savings  and 

14 InvestEurope, 2024 
15 EU plus the UK. 
16 The Regulation of European Crowdfunding Service Providers for business facilitates more efficient 
intermediation and matchmaking, including between business angels and startups at a pan-European level. 
17  EIB  (2024),  The  scaleup  gap:  financial  market  constraints  holding  back  innovative  firms  in  the  European 
Union, European Investment Bank, https://data.europa.eu/doi/10.2867/382579  
18  EIB  (2024),  The  scaleup  gap:  financial  market  constraints  holding  back  innovative  firms  in  the  European 
Union, European Investment Bank, https://data.europa.eu/doi/10.2867/382579  
19 See the summary of the consultation included in the Staff Working Document accompanying this Strategy. 
20 EIF report on  Scale-up financing gap 

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Investment Union, the Commission will explore ways to support ETCI 2.0, a deeper and even 
more  ambitious  fund  of  funds  structure,  pooling  capital  from  both  private  and  public 
investors,  that  is  planned  to  be  launched  by  the  EIF  by  2026.  A  close  cooperation  and 
complementarity  between  ETCI  2.0  and  the  new  Scaleup  Europe  Fund  will  be  ensured  to 
maximise  impact  and  flexibility,  notably  in  view  of  the  future  European  Competitiveness 
Fund. 

The  demand  for  deep  tech  startup  financing  also  remains  high.  Despite  the  EIC  Fund 
becoming  one  of  Europe’s  main  deep  tech  investors  in  only  four  years,  the  demand  from 
excellent deep tech companies for EIC support cannot currently be met.21 At the same time, 
the EIC needs to simplify and accelerate its processes to better respond to its applicants’ and 
potential  investees’  needs.  Furthermore,  the  EIC  will  take  inspiration  from  ARPA-type 
practices  and  will  work  closely  with  its  trusted  investors,  corporate  partners  and  the  most 
successful  European  innovators  to  identify  emerging  technological  trends  and  disruptive 
technologies that are key to European competitiveness and strategic autonomy.22  

In particular, women  entrepreneurs  and investors  continue  to face significant barriers 
in accessing funding.  For instance, capital  investment  in  tech startups  is still dominated by 
all-men  founding  teams,  with  mixed  gender  founding  teams  receiving  15  %  of  the  funding, 
while  all-women  teams  receive  only  3%.23  Strengthening  women’s  access  to  funding, 
increasing  their  representation  in  decision-making  roles  in  finance,  and  fostering  female-led 
investment  networks  are  critical  to  closing  this  persistent  gender  gap.  The  Social  Economy 
Action Plan and its forthcoming revision (2026) will also seek to enhance support for social 
innovation.  

Today,  European  institutional  investors,  including  pension  and  insurance  funds,  play 
only  a  limited  role  in  the  European  VC  market.  Between  2013  and  2023,  pension  funds 
accounted for only 7% of VC funding in the EU.24 However, some EU Member States have 
already  started  taking  initiatives  to  mobilise  institutional  investors  to  participate  in  VC 
investments.25 

Many startups struggle to use their intangible assets, such as intellectual property (IP), 
as  collateral  or  security  to  raise  funding,  due  to  i)  restrictive  banking  practices,  ii)  an 
underdeveloped  IP  valuation  ecosystem,  iii)  lack  of  trust  in  IP  valuation  methods,  iv)  low 
awareness of internationally recognised IP valuation methods and, more generally, v) limited 
market  recognition  of  IP-backed  financing.  There  is  a  lack  of  incentives  in  the  EU  to 
encourage banks and institutional investors to engage in IP-backed financing.  

The  potential  of  European  business  angels  is  still  limited  by  obstacles  to  cross-border 
investment and business practices that lock in business angel investment over a long period.  

21 Only 5.9% of applications to the EIC Accelerator were successful in the most recent cut-off (October 2024), a 
figure consistent with previous cut-offs. 
22 ARPA (Advanced Research Projects Agency) is a U.S. government agency that funds high-risk, high-reward 
research to drive breakthrough innovations in science and technology, originally established as ARPA (now 
DARPA) under the Department of Defence and later replicated in other sectors like energy (ARPA-E) and health 
(ARPA-H). 
23 European Commission: Directorate-General for Research and Innovation, She-Figures 2024 – Policy report, 
Publications Office of the EU, 2025. 
24 France Digitale, 2024 
25 For example, the Tibi initiative in France or the WIN initiative in Germany. 

7 

 
 
 
EU legislation such as Foreign Direct Investment (FDI) screening and State Aid rules is 
essential  for  ensuring  the  security,  strategic  interests  and  fairness  of  the  EU  single  market. 
This  also  applies  to  FDI  in  startups  and  scaleups,  where  issues  of  IP  ownership  and  local 
added  value  are  crucial.  However,  their  implementation  can  at  times  be  perceived  as  too 
burdensome and stifling by startups. Therefore, it is important that these instruments remain 
targeted  to  their  objectives.  In  this  spirit,  the  ongoing  revision  of  the  FDI  Screening 
Regulation  aims  to  harmonise  screening  processes  across  Member  States  and  improve  EU-
wide  cooperation.  The  Commission  will  work  with  Member  States  to  ensure  that  FDI 
screening  procedures  are  effective,  proportionate,  predictable,  and  do  not  deter  legitimate 
investments. State Aid rules already offer some flexibility for startups, allowing exemptions 
from general restrictions on aid to companies ‘in difficulty’. However, as current definitions 
rely on static financial indicators, the Commission will assess how to better tailor these rules 
to provide support for startups to grow. 

The  limited  availability  of  suitable  exit  options  is  a  major  barrier  to  the  growth  of 
venture  and  growth  capital  in  the  EU.  While  IPO  volumes  in  Europe  have  grown 
significantly—reaching over EUR 320 billion in the past decade—exits remain concentrated 
in  a few countries,  and the EU stock market  is  only  55% the size of  EU  GDP compared to 
147% in the US. The EU accounts for just 11% of global IPOs.  

To  address  key  challenges  in  the  functioning  of  EU  capital  markets,  the  Commission  is 
implementing  the  Savings  and  Investment  Union  (SIU)  strategy.26  The  SIU  will  reduce 
market fragmentation, create better investment opportunities for citizens and help to  expand 
funding options for businesses. In particular it will seek to improve access to equity and debt 
financing  for  startups  and  scaleups,  strengthen  the  role  of  venture  capital  and  institutional 
investors and better align EU public funding instruments with SIU objectives. 

Finally, mergers and acquisitions play a key role in reinvesting and scaling innovation, 
but over 60% of European startup buyouts are by non-EU companies. For the EU to retain its 
technological  sovereignty  and  foster  the  growth  of  homegrown  innovation,  European 
corporates  must  better  compete  to  keep  talent  and  technologies  within  our  continent,  while 
ensuring  young  companies  can  choose  their  own  growth  and  exit  strategies  without  stifling 
ambition. 

Actions 

•  The  Commission  will  expand  the  European  Innovation  Council  and  simplify  its 
rules. The EIC will increase its focus on challenge-driven, staged funding for high-risk 
innovations by introducing more ARPA-like processes. It will also expand its Trusted 
Investor  Network  and  better  engage  with  EU  centaurs  and  unicorns  for  policy 
feedback (2025).  

•  The Commission will work with private investors to deploy, as part of the EIC Fund, a 
market-based, privately managed and privately co-financed Scaleup Europe Fund,27 
with  a focused investment  strategy aimed at bridging the financing  gap of deep tech 

26 Savings and Investments Union A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the 
EU (COM/2025/124, final) 
27 This fund was referred in previous Commission Communications, e.g. the Clean Industrial Deal, as  TechEU 
Scaleup Fund – the concept is the same. The internal Commission governance of the fund will be decided after 
the adoption of the strategy. 

8 

 
 
 
scaleup companies. The Scaleup Europe Fund will mobilise significant private funds 
and  make  direct  equity  investments  in  strategic  sectors,28  to  contribute  to  Europe’s 
technological  sovereignty  and  economic  security.  The  deployment  of  the  Scaleup 
Europe Fund is without prejudice to the next Multiannual Financial Framework.  The 
Scaleup  Europe  Fund  will  work  in  close  cooperation  with  InvestEU  and  in 
complementarity with the European Tech Champions Initiative and other instruments 
of the EIB Group (2026). 

•  The  Commission,  in  coordination  with  the  EIB  Group,  will  work  with  large 
institutional investors to develop a voluntary European Innovation Investment Pact 
for those who commit to invest part of their assets under management into EU funds-
of-funds, venture capital funds and unlisted scaleups (2026).  

•  The  Commission  will  leverage  and  reinforce  existing  instruments  and  develop  new 
instruments  to  invest  in  European  security  and  defence  startups  and  scaleups,  in 
line with the White Paper on Defence29 and based on the upcoming Omnibus Defence 
Simplification  Package.  These  instruments  could  include  more  flexible  and  adaptive 
funding  approaches  for  emerging  defence  innovators,  including  also  from  Ukraine, 
such as targeted support to  single entities;  as well as reinforcing  and broadening  the 
scope of available EU funding options, including equity and debt instruments (2026). 
•  The Commission will develop a framework for IP valuation for IP-backed financing 
in  cooperation  with  the  European  Union  Intellectual  Property  Office.  It  will  also 
expand the evidence base to develop concrete IP finance instruments. (Q2 2027). 

•  The Commission will support European business angels and their networks in order 

to create more possibilities for young startups to grow (2026).  

•  The  Commission  will,  in  the  context  of  the  upcoming  review  of  the  Rescue  and 
Restructuring Guidelines, review the definition of ‘undertaking in difficulty’ taking 
into account the possible obstacles for certain startups and scaleups, which are not at 
risk of going out of business, to benefit from other types of State aid (as of Q2 2025). 

•  The  Commission  will  review 

the  Horizontal  and  Non-Horizontal  merger 

Guidelines bearing in mind dynamic criteria such as innovation competition (2027). 

•  The Commission will create a European Corporate Network to better integrate large 
companies,  corporate  venture  investors  and  corporate  procurers  into  the  EU’s 
innovation  ecosystem  and  benefit  from  innovative  solutions  developed  by  startups. 
The Network members would advise on related policy, engage in matchmaking with 
startups and make a voluntary commitment to privilege European startups when they 
engage,  invest  and  procure  innovative  solutions,  especially  when  they  use  public 
funding or when they operate critical research or technology infrastructures (2026).  

28 Such as for example artificial intelligence, quantum technologies, advanced semiconductors, medical 
technology, biotechnology, bioeconomy applications, clean tech and energy (including nuclear technology), 
water and blue tech, security, defence, space, robotics and advanced materials, as well as including any dual-use 
applications. 
29  European  Commission,  White  Paper  for  European  Defence  –  Readiness  2030,  19  March  2025 
https://commission.europa.eu/document/download/e6d5db69-e0ab-4bec-9dc0-
3867b4373019_en?filename=White%20paper%20for%20European%20defence%20%E2%80%93%20Readines
s%202030.pdf 

9 

 
 
 
 
4.  FAST MARKET UPTAKE AND EXPANSION 

The  successful  commercialisation  of 
innovative  products  relies  on  a  mix  of 
entrepreneurial  drive,  risk-tolerant  capital,  market  demand  and  public  support. 
Universities30  play  a  crucial  role  in  this  ecosystem,  producing  over  157,000  spinoffs  and 
startups from alumni, potentially generating 6.1 million jobs in the next decade.31 The EU has 
a  long-standing  track  record  of  initiatives  and  public  policies  in  support  of  innovation 
ecosystems.  The  European  Unitary  Patent  System,  launched  in  2023,  is  expected  to 
significantly 
the 
commercialisation of technologies across the EU.  

reduce  patent  costs,  provide  uniform  protection  and  speed  up 

In  Europe,  translating  research  into  commercial  ventures  remains  low  outside  high-
performing innovation clusters. The European Institute of Innovation and Technology,32 the 
Enterprise Europe Network,33 the European Clusters Collaboration Platform (ECCP) and the 
EDIHs  (European  Digital  Innovation  Hubs)  already  support  entrepreneurship  and  academic 
startups, but key issues remain. While universities account for over 10% of patents filed at the 
European  Patent  Office,  only  one-third  of  these  patents  are  commercially  exploited.  A  key 
issue is the lack of a pro-innovation mindset in many universities, where there are insufficient 
incentives  for  researchers  to  commercialize  their  work.  Legal,  organisational  and  financial 
frameworks for academic spin-offs vary across Europe, causing an uneven landscape across 
the  continent.  Additionally,  the  public  procurement  process  in  many  EU  countries  is  overly 
risk-averse, favouring established providers over startups. This limits access from startups to 
public  contracts  for  innovative  solutions.  Corporate  procurement  processes  also  hinder  the 
ability of startups to expand, with innovation often stifled by risk-averse practices. 

To  foster  a  more  cohesive  innovation  environment,  the  EU  must  encourage  stronger 
interconnected  ecosystems 
for  universities,  research 
through  greater  support 
institutions,  and  startups.  The  Unitary  Patent  System  must  be  fully  adopted  by  all  EU 
Member States to reduce patent costs and facilitate the commercialisation of research. On the 
procurement side, the European Commission plans to revise and propose legislation and non-
legislative measures concerning public and private procurement, which will also help to better 
support  startups  and  scaleups  by  reducing  possible  barriers  and  encouraging  innovation. 
Complementary  non-legislative  measures  will  enhance  monitoring,  funding,  and  national 
competence  networks  across  Member  States.  By  supporting 
intra-EU  cross-border 
collaborations  and  simplifying  access  to  procurement  processes,  the  EU  can  create  a  more 
favourable  environment  for  the  growth  and  scaling  of  startups.  To  enhance  collaboration 
between startups and corporates, strategic partnerships should be encouraged, making it easier 
for startups to secure their first customers and grow. Cohesion policy can also help connect 

30  Including as Universities of Applied Sciences and Research and Technology Organizations. 
31 Redstone University Startup Index - Europe's Trillion Euro Opportunity, 2024 - 
https://www.redstone.vc/research/redstone-university-startup-index 
32  The  European  Institute  of  Innovation  and  Technology  (EIT)  directly  supported  over  9  900  startups  and 
scaleups  which  have  collectively  raised  almost  €10  billion  in  external  funding,  resulting  in  unicorns  and 
innovative companies worth €71.2 billion today.  
33  More  than  3,500  Enterprise  Europe  Network  (EEN)  advisors  help  startups  and  scaleups  with  free  business 
support  in  nearly  60  countries.  Over  1,500  clusters  also  boost  innovation  and  competitiveness  among  its 
stakeholders including for startups. 

10 

 
 
 
 
regional and national actors, fostering territorial connectivity and helping startups scale. The 
mid-term review of cohesion policy is a key step in aligning regional and national efforts to 
help startups connect with larger corporations and enter new markets. 

Finally,  the  Commission  in  cooperation  with  the  European  External  Action  Service  and 
Member  States’  will  support  startups  to  access  global  markets,  including  by  leveraging 
trade agreements as well as mobilising through EU Delegations, Member State networks and 
dedicated  EU  tools.34  The  Commission  will  also  work  on  better  integrating  innovative 
solutions from startups and scaleups into the value-chains of Global Gateway and benefit its 
supporting financial instruments, to improve their access in developing markets. 

Actions 

•  The  Commission  will  launch  a  Lab  to  Unicorn  Initiative  to  accelerate  the 
commercialisation of research results. Under this initiative, the Commission will: 

o  support  leading  European  Startup  &  Scaleup  Hubs,  rooted  in  strong 
university  ecosystems,  to  network  and  collaborate  across  borders  to  provide 
access 
to  each  other’s  respective  services, 
infrastructures  and  corporates.  Synergies  with  existing  networks  will  be  
harnessed where relevant (2026). 

to  startups  and  scaleups 

o  develop a blueprint for licensing, royalty- and revenue-sharing and equity 
participation  for  academic 
inventors  when 
commercialising IP and creating spinoffs, following best commercial practice. 
The  Commission  will  support  capacity-building  of  Technology  Transfer 
Offices  and  the  creation  of  ‘venture  builders’  roles  in  research  performing 
organisations,  including  Research  and  Technology  Organisations,  research 
infrastructures and universities (2026). 

institutions  and  their 

o  provide legal and implementation guidance on the applicable State aid rules 
to  support  startups  by  clarifying  the  conditions  under  which  universities  and 
public research organisations can grant IP rights in compliance with State aid 
rules (2026). 

•  The Commission will propose a set of measures for pro-innovation procurement. In 

particular: 

o  In the context of the revision of the EU public procurement directives, the 
Commission  will  seek  ways  to  improve  and  simplify  the  access  to  public 
procurement,  taking  into  account  the  needs  of  startups  and  scaleups.  The 
public  consultation  would  also  look  into  issues  particularly  relevant  for 
startups  and  scaleups,  such  as  limiting  overspecification  and  excessive 
financial requirements in tender documents and introducing more innovation-
friendly IPR provisions and value engineering. 

o  In the context of the revision of the EU public procurement directive in the 
field  of  defence  and  security,  the  Commission  will  seek  ways  foster  the 

34  Including  online platforms  such  as  the  Commission’s  Access2Markets  portal,  specific  helpdesks  in  non-EU 
countries, networks supported by the Commission like the Enterprise Europe Network or national or European 
Chambers of Commerce inside the EU, or in potential foreign markets. 

11 

 
 
 
 
inclusion  of  startups  and  scaleups  in  procurements  and  take  into  account  a 
possible EU preference in  procurements  to  reinforce EU competitiveness  and 
technological sovereignty. 

o  In the context of the European Innovation Act, complementing the above, the 
Commission will seek ways to increase total investments in public and private 
innovation  procurement  across  Europe  i)  provide  a  fast-track  procedure  for 
public  procurement  of  R&D  services  that  fall  outside  of  the  EU  public 
procurement directives, including pre-commercial procurements; ii) incentivise 
innovation-minded sourcing strategies for private procurers.  

The Commission will support the above legislative measures with non-legislative support 
measures, such as i) continuing the EU wide monitoring of national innovation procurement 
policy frameworks and investments and integrating it into the European Research Area and 
European Innovation System scoreboards; ii) reinforcing support from EU R&I funding to 
public buyers to implement joint innovation procurement in strategic sectors and technologies 
and iii) reinforcing the European network of national competence centres for innovation 
procurement and to extend it further to all Member States. 

12 

 
 
 
5.  SUPPORT FOR THE BEST TALENT IN EUROPE 

The  success  of  a  startup  heavily  relies  on  access  to  highly  skilled  talent.  Some  EU 
Member  States  have  implemented  initiatives  like  digital  nomad  visa  schemes,  e-residence 
digital IDs and qualified worker programmes to attract top talent. These schemes are designed 
to facilitate the relocation of highly skilled candidates, making it easier for startups to tap into 
the  global  talent  pool.  The  EU  Talent  Pool  and Talent  Partnerships  will also  help  to  recruit 
skilled  third-country  nationals,  tailored  to  the  sectors  most  in  need  of  a  skilled  workforce. 
rthermore,  59%  of  startups  in  Europe  have  remotely  distributed  teams,  with  78%  of 
engineering teams working remotely. This trend has helped prevent regional brain drain and 
enabled startups to access a wider pool of European talent while minimizing operational costs. 
However, work in remote cross-border teams remains hampered by the complexity of tax and 
social security obligations.   

Despite  these  initiatives,  competition  for  qualified  talent  remains  fierce.  Cross-border 
mobility obstacles, notably hindrances to the recognition of qualifications,untapped academic 
potential,  significant  underrepresentation  of  women  and  limited  diversity  contribute  to  this 
issue.  Additionally,  startups  often  cannot  match  the  wages  and  benefits  offered  by  larger 
companies, making it difficult to attract top employees. The complexities around  Employee 
Stock Options (ESOs), such as differences in tax treatment across EU Member States, create 
additional  challenges  for  startups  when  offering  non-cash  compensation  to  attract  skilled 
talent. 

A  major  issue  also  lies  in  entrepreneurial  education.35  Less  than  50%  of  EU  students  in 
secondary  and  higher  education  have  access  to  any  form  of  entrepreneurial  education, 
hindering  the  development  of  future  entrepreneurs.36  Furthermore,  existing  frameworks  for 
managing and commercialising academic research results often lack the necessary incentives, 
as universities prioritise academic publication over commercialisation.37,38 

To address the talent gap, it is essential to improve entrepreneurial education, ensuring 
that students acquire the skills, mindset, and resilience necessary to innovate and create jobs. 
Programs  should  be  better  aligned  with  industry  needs  to  equip  students  with  practical 
knowledge.  Additionally,  promoting  gender  balanced  leadership  and  diversity  within  the 
startup  ecosystem  will  help  build  a  stronger,  more  resilient  talent  pipeline.  Universities 
should  also  focus  more  on  incentivising  commercialisation  of  research  and  creating 
appropriate  reward  structures  for  researchers  who  contribute  to  spinoff  formations  and 
knowledge  transfer.  Harmonising  certain  aspects  of  the  treatment  of  Employee  Stock 
Options  (ESO),  including  taxation,  across  EU  Member  States  will  reduce  administrative 
complexity  and  encourage  more  startups  to  offer  ESOs  as  a  competitive  benefit.  To  help 
retain  talent,  startups  should  continue  to  embrace  the  remote  working  model,  ensuring  they 

35  European  Commission,  Union  of  Skills  Communication,  2025,  https://commission.europa.eu/topics/eu-
competitiveness/union-skills_en 
36 European Commission’s Entrepreneurship 2020 Action Plan 
37 Challenges in academic commercialisation: a case study of the scientists' experiences 
38 Draghi report (2024), p. 241. 

13 

 
 
 
 
 
navigate  the  challenges  related  to  healthcare,  caregiving  responsibilities,  social  security 
contributions and retirement taxation effectively. 

The EU  Blue Card Directive  and the  Long-Term Residents Directive proposal are key 
steps  in  facilitating  the  attraction  and  retention  of  highly  skilled  non-EU  talent. 
However,  the  Blue  Card  primarily  addresses  employees  and  not  startup  founders  or 
innovative  entrepreneurs.  Some  Member  States  have  national  schemes,  but  the  process 
remains  fragmented  and  complex.  Streamlining  these  procedures  for  work  and  residence 
permits  will  help  create  a  more  cohesive  and  efficient  system.  Further,  international 
recruitment from countries outside the EU will be essential to meet the growing demand for 
specialized skills across all levels in the startup ecosystem.  

Actions  

The Commission will launch a Blue Carpet initiative to support the attraction and retention 
of highly skilled and diverse talent from within the EU and from non-EU countries. As part of 
this initiative, the Commission will (2025-2026): 

•  Actively  promote  and  further  strengthen  entrepreneurial  education  and  upskilling, 
including through the EIT, promoting gender balanced and diverse participation. 
•  develop a blueprint for an academic career development framework that rewards 
research  commercialisation  activities,  including  transitioning  from  university  to 
industry and back, such as in the academic staff evaluation and promotion criteria, as 
part  of  the  Competence  framework  of  academic  staff  announced  in  the  Union  of 
Skills.39 

•  explore  best  practices  concerning  the  treatment  of  employee  stock  options  for 
startups, including considering legislative measures to harmonise certain aspects 
of their treatment. 

•  propose  a  recommendation  to  eliminate  tax  obstacles  for  remote  cross-border 

employees for startups and scaleups. 

•  present  a  Fair  Labour  Mobility  Package,  including  clarification  of  social  security 
coordination  rules  in  case  of  cross-border  remote  work  and  a  Skills  Portability 
Initiative to further facilitate and simplify the recognition of qualifications, including 
for third country nationals (2026). 

•  adopt  an  EU  Visa  Strategy  which  will  include  measures  to  better  attract  highly 
skilled students, researchers, entrepreneurs and trained workers from third countries to 
come  to  the  EU,  for  example  by  making  the  most  of  the  Students  and  Researchers 
Directive and the Blue Card Directive in particular for startup founders (Q4 2025). 

•  pilot  the  Multipurpose  Legal  Gateway  Offices  initiative  with  a  specific  focus  on 
ICT  skills  (Q4  2025).  The  pilot  will  serve  as  a  one-stop-shop  for  information  and 
assistance to highly skilled professionals, students and researchers in the ICT sector, 
who are interested to work in the EU.  

• 

roll-out  targeted  information  activities  to  promote  the  EU  Blue  Card  Directive, 
among  highly  skilled  non-EU  workers  and  employers  about  the  benefits  of  the  EU 

39 Communication on the Union of Skills 

14 

 
 
 
Blue  Card,  including  the  possibility  for  the  EU  Blue  Card  holder  and  its  family 
members to get easier access to the EU long-term residence status. 

•  encourage  Member  States  to  put  in  place  fast-track  schemes  allowing  eligible 
startup founders to obtain a residence and work permit under simplified and expedited 
procedures.  

•  simplify and reinforce existing EURAXESS services for innovators, including by 
offering  bespoke  support  to  non-EU  talent,  with  essential  information  on  the 
respective procedures across the different EU Member States. 

15 

 
 
 
 
6.  ACCESS TO INFRASTRUCTURE, NETWORKS AND SERVICES 

Startups need cutting-edge research, technology facilities, and expertise to rapidly test, 
time-to-market  and  boosting 
scale,  and  validate  new  products,  accelerating 
commercialisation  success.  Horizon  Europe  supports  this  by  funding  the  European  High 
Performance  Computing  Joint  Undertaking,  which  will  house  13  new  AI  Factories  offering 
computing power and customised support to SMEs and startups.40 

Networks like the Enterprise Europe Network, European Digital Innovation Hubs and the 
EIT  provide  targeted  assistance.  But  despite  these  resources,  information  gaps,  complex 
access processes and fragmented IP management agreements remain major barriers. Many 
startups struggle to navigate the maze of services, unable to easily identify the right research 
infrastructures  or  funding  opportunities.  The  lack  of  clear  entry  points  and  fragmented 
access to funding, services and information compounds the problem, leaving startups without 
streamlined pathways to access available support. State Aid rules relating to access to public 
infrastructures are sometimes perceived as unclear.  

Startups,  scaleups,  innovators  and  investors  need  faster  and  better  access  to  resources 
needed  to  thrive  and  grow.  In  the  context  of  the  forthcoming  European  Competitiveness 
Fund,  the  Commission  will  streamline  existing  EU  IT  hubs  with  the  aim  of  establishing  a 
single  digital  entry  point  for  European  innovators,  investors,  and  service  providers  to  find, 
compare  and  access  funding  programmes, services and infrastructure. This  initiative  will be 
implemented in complementarity with the EIB’s TechEU platform.  

Actions 

•  The Commission will develop a Charter of Access for industrial users to research 
and  technology  infrastructures,  including  for  startups  and  scaleups,  and,  where 
necessary, simplify and harmonise diverging access and contractual conditions. The 
Commission  will  financially  support  access  to  AI  computing  facilities  for  startups 
(2025). 

•  Building  on  the  Charter,  the  European  Innovation  Act  will  further  promote  the 
access of innovative companies to European research and technology infrastructures 
through legislative measures (Q1 2026). 

•  The Commission will provide legal and implementation guidance on the applicable 
State Aid rules to clarify the conditions under which universities and public research 
organisations  can  grant  access  to  infrastructure  in  compliance  with  State  Aid  rules 
(2026). 

40 that will be deployed in the context of the AI Continent Action Plan 

16 

 
 
 
 
 
 
7.  MEASURING PROGRESS 

Currently  there  is  no  single  EU  definition  of  startups,  scaleups  and  innovative 
companies.  11  EU  Member  States  have  adopted  a  legal  definition  of  startup41  and  five 
Member  States  of  scaleup,42  while  the  General  Block  Exemption  Regulation  and  Horizon 
Europe  Regulation  also  set  out  definitions  at  EU  level  for  different  purposes.  This  creates 
uncertainty  and  makes  it  difficult  to  collect  data or  assess  the  state  of  the  ecosystem  at  any 
given  time,  let  alone  to  design  targeted  policy  measures  for  these  types  of  companies.  The 
European  Innovation  Scoreboard  (EIS)  and  Eurostat  Structural  Business  Statistic  (ESBS) 
provide  valuable  insights  into  high-growth  firms  and  European  innovation  ecosystems,  but 
their interpretability suffers from the lack of standard and generally accepted definitions.  

Against  this  background,  a  harmonised  definition  of  startups,  scaleups  and  innovative 
companies is needed, not only to measure the impact of the Strategy and its policy measures, 
but  also  to  allow  the  Commission  to  propose  additional  targeted  simplification  or  support 
measures for these categories of companies. 

Actions 

•  The  Commission  will  propose  a  definition  of  startups,  scaleups  and  innovative 
companies, taking into account existing definitions of SMEs and small mid-caps (Q1 
2026). 

•  The Commission will set up a European Startup and Scaleup Scoreboard that will 
measure,  based  on  a  set  of  indicators  the  performance  of  the  European  and  national 
startup and scaleup ecosystems. Indicators will include, among others, the number of 
startups, scaleups, centaurs and unicorns. It will also be used to measure the impact of 
the  Strategy  by  using  three  Key  Performance  Indicators:  1)  the  increase  in  the 
number of startups in the EU, 2) the increase in the number of centaurs in the EU and 
3)  the  increase  in  the  number  of  unicorns  in  the  EU  (as  of  2026),  and  how  these 
compare with global competitors. 

•  The Commission will carry out an annual startup and scaleup survey to assess the 
perception of innovative company founders of the improvement in the EU’s regulatory 
environment over time (as of 2026). 

41 BG, DK, EE, EL, HU, IT, LV, LT, PT, SI, ES 
42 BG, DK, EE, EL, PT 

17 

 
 
 
 
 
 
CONCLUSION 

Europe  is  at  a  pivotal  moment,  and  putting  startups  and  scaleups  at  the  heart  of  its 
competitiveness  agenda  is  essential  for  driving  future  growth  and  prosperity.  The  EU 
Startup and Scaleup Strategy lays the European Commission’s vision and groundwork for this 
transformation,  tapping  into  our  strengths  while  seizing  the  opportunities  of  the  current 
geopolitical landscape. 

This  Strategy  takes  a  holistic  approach,  simplifying  processes  at  every  stage  of  startup 
development, and combines short-term action with long-term reforms to create an ecosystem 
where startups in any sector can thrive — and choose to stay and relocate in Europe. It caters 
for the gradual integration of EU candidate countries. 

The  key  to  success  lies  in  swift,  effective  implementation.  Key  milestones  like  the 
European Innovation Act and the 28th regime for companies will be critical to achieving these 
goals. The Strategy integrates policy, legislative and financial support, with a strong focus on 
accountability  through  clear  tracking  instruments.  The  European  Commission  will  lead  by 
example, involving the startup and scaleup community – including through regular meetings 
of European unicorns and centaurs – in shaping and executing these plans. 

Collaboration  across  Member  States  is  critical  for  success.  The  European  Innovation 
Council Forum will track progress and turn ambition into action, while political backing will 
be critical to ensure timely and effective delivery of the Strategy's goals.  

It  is  time  to  make  the  European  Union  the  ultimate  destination  for  innovation, 
empowering startups and scaleups to grow, scale, and succeed. In our continent. 

The  Commission  invites  the  European  Parliament,  the  European  Council,  the  Council  and 
stakeholders  to  endorse  the  EU  Startup  and  Scaleup  Strategy  and  to  actively  contribute  to 
delivering on the initiatives it sets out. 

The Commission will report on the implementation of the Strategy by the end of 2027. 

18 

 
 
 
 
 
 
THE EU STARTUP AND SCALEUP STRATEGY 

ACTIONS SUMMARY 

I. INNOVATION-FRIENDLY REGULATION 

Actions  

• 

28th regime for companies (Q1 2026)  

•  European Business Wallets (Q4 2025) 

•  European Innovation Act (Q1 2026) 

•  Voluntary “Innovation Stress Test” (Q1 2026) 

•  Reduce regulatory burdens in strategic sectors (as of 2025) 

•  Revision of the Standardisation Regulation (2026) 

• 

Study on corporate restructuring (2026) 

II. BETTER FINANCE FOR STARTUPS AND SCALEUPS 

Actions 

•  Expand and simplify the European Innovation Council (2025) 

•  Scaleup Europe Fund (2026) 

•  European Innovation Investment Pact (2026) 

•  European investment instruments for security and defence startups and scaleups (2026) 

•  Framework for IP valuation (Q2 2027) 

•  Support for European business angels (2026) 

•  Review of the definition of “undertaking in difficulty” (as of Q2 2025) 

•  Review the Horizontal and Non-Horizontal merger Guidelines (2027) 

•  European Corporate Network (2026) 

III. FAST MARKET UPTAKE AND EXPANSION 

Actions 

•  Lab to Unicorn initiative (2026) 

•  Pro-innovation procurement measures (2025-2026) 

IV. SUPPORT FOR THE BEST TALENT IN EUROPE  

Actions 

•  Blue Carpet Initiative (2025-2026) 

•  Fair Labour Mobility Package (2026) 

19 

 
 
 
 
 
 
V. ACCESS TO INFRASTRUCTURE, NETWORKS AND SERVICES 

Actions 

•  Charter of Access for industrial users to research and technology infrastructures (2025) 

•  European  Innovation  Act  promoting  the  access  of  innovative  companies  to  European 

research and technology infrastructures (Q1 2026) 

•  Guidance  on  the  applicable  State  Aid  rules  for  universities  and  public  research 

organisations to grant access to infrastructure (2026) 

VI. MEASURING PROGRESS 

Actions 

•  Definition of startups, scaleups and innovative companies (2026) 

•  Annual startup and scaleup survey (as of 2026) 

•  European Startup and Scaleup Scoreboard (as of 2026) 

20