Startup and Scaleup Strategy

STRATEGY2025-05-28

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 (Q12026).

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.

The Commission will expand the European Innovation Council and simplify ist 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, with a focused investment strategy aimed at bridging the financing gap of deep tech scaleup companies. The Scaleup Europe Fund will mobilise significant private funds and make direct equity investments in strategic sectors, 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).

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

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

develop a blueprint for licensing, royalty- and revenue-sharing and equity participation for academic institutions and their 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).

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:

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.

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

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 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.

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 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.

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).

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).

Action items (21)

Mastersheet initiatives linked to this strategy.

Announced — not yet in mastersheet (41)

Actions referenced in the strategy document that have no Mastersheet record yet.

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).
No initiative record
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).
No initiative record
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).
No initiative record
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 (Q12026).
No initiative record
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).
No initiative record
The Commission will revise the Standardisation Regulation to make standard- setting processes faster and more accessible, particularly for SMEs and startups (Q2 2026).
No initiative record
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.
No initiative record
The Commission will expand the European Innovation Council and simplify ist 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).
No initiative record
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, with a focused investment strategy aimed at bridging the financing gap of deep tech scaleup companies. The Scaleup Europe Fund will mobilise significant private funds and make direct equity investments in strategic sectors, 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).
No initiative record
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).
No initiative record
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).
No initiative record
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).
No initiative record
The Commission will support European business angels and their networks in order to create more possibilities for young startups to grow (2026).
No initiative record
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).
No initiative record
The Commission will review the Horizontal and Non-Horizontal merger Guidelines bearing in mind dynamic criteria such as innovation competition (2027).
No initiative record
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).
No initiative record
The Commission will launch a Lab to Unicorn Initiative to accelerate the commercialisation of research results. Under this initiative, the Commission will:
No initiative record
support leading European Startup & Scaleup Hubs, rooted in strong university ecosystems, to network and collaborate across borders to provide access to startups and scaleups to each other’s respective services, infrastructures and corporates. Synergies with existing networks will be harnessed where relevant (2026).
No initiative record
develop a blueprint for licensing, royalty- and revenue-sharing and equity participation for academic institutions and their 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).
No initiative record
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).
No initiative record
The Commission will propose a set of measures for pro-innovation procurement. In particular:
No initiative record
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.
No initiative record
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 inclusion of startups and scaleups in procurements and take into account a possible EU preference in procurements to reinforce EU competitiveness and technological sovereignty.
No initiative record
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.
No initiative record
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):
No initiative record
Actively promote and further strengthen entrepreneurial education and upskilling, including through the EIT, promoting gender balanced and diverse participation.
No initiative record
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.
No initiative record
explore best practices concerning the treatment of employee stock options for startups, including considering legislative measures to harmonise certain aspects of their treatment.
No initiative record
propose a recommendation to eliminate tax obstacles for remote cross-border employees for startups and scaleups.
No initiative record
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).
No initiative record
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).
No initiative record
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.
No initiative record
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 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.
No initiative record
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.
No initiative record
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.
No initiative record
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).
No initiative record
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).
No initiative record
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).
No initiative record
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).
No initiative record
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.
No initiative record
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).
No initiative record