The European Commission’s new EU Startup and Scaleup Strategy sets out a comprehensive vision to make Europe the most attractive place in the world to launch and grow innovative companies. The strategy highlights that startups and scaleups are crucial for strengthening technological sovereignty, economic resilience, and long-term competitiveness. While Europe has a solid foundation—such as a skilled workforce, a stable regulatory framework, and a large single market—persistent challenges remain: fragmentation, difficult access to capital, and limited scalability threaten to undermine its potential. Many European firms struggle with the so-called “double valley of death”, where promising innovations fail to reach the market or scale effectively.
To tackle this, the Commission proposes a broad mix of regulatory reforms, financial instruments, and policy support. It will introduce a harmonised legal framework across the EU—the 28th regime—and a new European Business Walletto simplify and digitise cross-border operations. The strategy promotes regulatory sandboxes to encourage innovation, and commits to reducing administrative burdens by 25% for businesses and 35% for SMEs. The forthcoming European Innovation Act will guide much of this regulatory shift, complemented by revisions to standardisation and insolvency laws.
On the financial side, the Commission acknowledges that Europe’s venture capital ecosystem is underdeveloped and too risk-averse. A new Scaleup Europe Fund will mobilise both public and private investment to support high-potential tech firms. The European Innovation Council (EIC) will expand its scope, adopting ARPA-style challenge-driven models and streamlining procedures. At the same time, the Commission will work to unlock institutional capital, strengthen IP-backed financing, and remove barriers to exit strategies such as IPOs and acquisitions. Notably, more than 60% of European startup acquisitions are currently made by non-EU companies, a trend the EU seeks to reverse to retain talent and technology within its borders.
Another major focus is accelerating market access. The Commission will launch a Lab to Unicorn initiative to turn research into commercial success, enhance technology transfer from universities, and overhaul public procurementrules to favour innovation and allow startups to participate more easily. The aim is also to better integrate startups into global value chains, leveraging tools like Global Gateway and trade agreements.
The strategy recognises that talent is the lifeblood of innovation. To this end, the Blue Carpet Initiative will attract and retain skilled workers, including from non-EU countries. This will include entrepreneurial education, stock option reform, and streamlined visa procedures. Measures will also promote gender balance, remote work compatibility, and cross-border labour mobility, reducing tax and social security frictions for distributed teams.
To support access to infrastructure, the Commission will simplify entry to EU-wide research and innovation facilities, develop a Charter of Access, and create a digital one-stop shop for funding and services. Current fragmentation and opacity are seen as critical barriers, particularly for early-stage firms with limited resources.
Finally, to ensure impact and accountability, the Commission will establish common definitions for startups, scaleups and innovative companies, and introduce a Startup and Scaleup Scoreboard to track progress. Key metrics will include the number of startups, centaurs (valued over €100M), and unicorns (valued over €1B), with comparisons to global benchmarks.
In sum, this strategy presents a bold attempt to rewire the European innovation model—less bureaucratic, more risk-friendly, and globally competitive. The Commission will report on its implementation by the end of 2027, but success will depend on swift execution and strong coordination across Member States, with the Commission pledging to lead by example.