EU Startup and Scaleup strategy: a roadmap for European Tech Leaders

Innovation and technology are no longer just an economic issue: They’ve become a geopolitical issue. With war at our borders and uncertainty around our transatlantic trade and military alliance, Europe has understood the need to stand on its own feet. Concepts like defense, dual use technologies, and buying European are no longer taboo in Brussels and across the capitals. 

The first step to regain ground on the world stage is having a competitive economy capable of supporting our needs and ambition. And in a world where the most valued companies and drivers of growth are in technology, Europe must urgently start by boosting its tech and innovation ecosystem. 

Europe accounts for just 8% of the world’s scaleups, compared with 60% in North America, and no EU-founded startup in the past 50 years has surpassed a €100 billion valuation. Meanwhile, six US startups have crossed the €1 trillion mark. If left unaddressed, this gap could cost Europe €1 trillion annually in lost market value. 

To change course, Europe must place startups at the heart of its innovation and industrial policies, set ambitious yet feasible objectives for 2030 and create the right regulatory and market conditions for European startups to turn into global leaders.  

Below we detail 5 guiding principles and 15 flagship measures that we believe should guide the Commission in the definition of a concrete and effective Startup and Scaleup Strategy (hereby: the Strategy) :

1. The Strategy can only succeed if it addresses all stages of the Startup Journey
2. The Strategy should not aim to create scaleups, but European Tech Leaders
3. The Strategy should have clear, measurable and realistic objectives
4. The Strategy should be easily understandable for its target audience: startups
5. The Strategy should avoid redundancies and establish clear responsibilities

 

15 flagship measures for the Strategy

→ Access to finance

1: a liquidity preference for business angels

2: a European VC Initiative (EVCI)

3: an EU Long-Term Savings Product

4: a less risk-averse Capital Requirements Regulation (CRR)

5: increase European citizens participation in capital markets

 

→ Access to market

6: the 28th regime

7: a certification passport

8: a European preference in public and private procurement

 

→ Access to talent

9: a favourable and harmonized stock-option regime

10: a harmonized tech  visa regime

 

→ Regulatory framework

11: an Omnibus on data regulations

 

→ Better linking research, innovation and business

12: a simplified access to European R&I funding

13: a more effective allocation of European R&I funding

14: a more market-oriented allocation of European R&I funding

15: ensuring EU tech investments match market needs