Between 2008 and 2021, almost 30% of startups worth more than a billion dollars (‘unicorns’) founded in Europe have relocated abroad, with the majority going to the United States. This is the observation made by the European Commission and the problem it intends to remedy in its “Startup and Scaleup Strategy”, due to be published at the end of May, a copy of which has been sent to Agence Europe.
It therefore believes that a “structural shift of the European economy towards a more entrepreneurial and innovative model” is necessary. This involves increased investments in the development of new products and services, agile markets, and a “regulatory environment conducive to innovation and investment”.
Facilitating investment. The European Commission lists a number of ways of encouraging investment in startups and scaleups: for example, it proposes expanding and increasing the firepower of the European Innovation Council.
In conjunction with the EIB Group and private investors, it also wants to deploy a ‘Scaleup Europe Fund’ to “help bridge the financing gap of deep tech scale-up companies” by 2026.
In addition, and again with the EIB, the European Commission wants to create – also by 2026 – 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.
With regard to public funding at national level, the Commission is proposing to re-examine the criteria for “undertakings in difficulty” with the aim of providing “more flexibility to provide public support to fast growing companies in temporary need of cash”.
Lighten the regulatory burden. The European Commission is also presenting a series of legislative measures that it intends to adopt in the coming years in this area. These include the proposal for a ‘European Innovation Act’ in early 2026, which should in particular promote ‘regulatory sandboxes’.
Other initiatives already mentioned in other Commission communications are listed, such as the proposal for a 28th regime for businesses, which is not expected until next year.
Lowering the administrative burden will also be addressed through various “acts” on biotechnology, science and medical devices, “as of 2025”.
Attracting talent. The European Commission wants to roll out not a red carpet, but a blue one for talent. This includes a number of initiatives in 2025 and 2026 through the Erasmus+ programme, and an EU visa strategy to promote student mobility, as well as entrepreneurial mobility.
Encouraging the mobility of talent also involves promoting existing tools, such as the ‘European Blue Card’, which makes it easier for residents of third countries to come and work in the EU. The benefits of this ‘Blue Card’ should extend to startup founders and highly skilled self-employed, according to the European Commission, which plans to put in place fast-track schemes for these groups.
See the draft strategy for startups and scaleups: https://aeur.eu/f/GTX (Original version in French by Léa Marchal)