EU billion-euro injection for startups “Choose Europe to Start and Scale”: Europe’s new funding strategy – Creative image: Xpert.Digital
Europe's answer to Silicon Valley: New billion-dollar strategy for tech startups
Game changer for European founders: EU presents groundbreaking scaleup strategy
On May 28, 2025, the European Union unveiled a groundbreaking startup and scaleup strategy called “Choose Europe to Start and Scale,” which aims to make Europe the world’s leading location for technology-oriented companies. This ambitious initiative marks a turning point in European innovation policy and aims to systematically overcome the structural weaknesses of the European startup ecosystem.
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The vision: Europe as a global innovation magnet
The new strategy responds to an alarming trend: Nearly 30% of European unicorns left the EU between 2008 and 2021, primarily for the US, where growth conditions are more favorable. Commissioner Ekaterina Zaharieva emphasizes: “The EU Startup and Scaleup Strategy is a clear declaration of intent: to make Europe the best place in the world to start and grow a business.”.
The Five Pillars of the Revolution
1. Innovation-friendly regulation: The 28th regime
At the heart of the reform is the introduction of an optional, EU-wide legal framework – the so-called “28th Regime”. This revolutionary system allows startups and scaleups to operate with a single set of rules in all 27 EU member states, instead of having to navigate through different national legal systems.
The core elements include:
- Fully digital company formation within 48 hours across Europe
- Uniform rules in company, insolvency, labor and tax law
- Reduction of failure costs through harmonized insolvency regulations
- European Business Wallet as a digital identity for seamless government transactions
A corresponding proposal is to be submitted at the beginning of 2026, with the aim of establishing the first legal form by 2027.
2. Massive financing offensive
The Scaleup Europe Fund
The flagship of the financing initiative is the new “Scaleup Europe Fund” with a minimum volume of €10 billion. This public-private fund is scheduled to launch in 2026 and will support strategic sectors such as artificial intelligence, quantum technology, cleantech, semiconductors, advanced materials, and biotechnology.
The structure of the fund:
- Four times more private than public capital
- Management by private investment managers
- Focus on companies with financing rounds of €100 million or more
Expansion of the European Innovation Council (EIC)
The EIC will be significantly expanded and simplified, with a budget of over €1.4 billion for 2025. The main programs include:
- EIC Accelerator: 634 million euros for startups and SMEs with grants of up to 2.5 million euros and equity capital of up to 10 million euros
- EIC STEP Scale-up: 300 million euros for larger investments of 10 to 30 million euros
- EIC Pathfinder: 262 million euros for visionary research with breakthrough potential
Every euro of public investment mobilizes more than three euros in private investment.
3. Accelerated Market Entry: Lab to Unicorn
The “Lab to Unicorn” initiative aims to accelerate the commercialization of research results. Key elements include:
- European startup and scaleup hubs for better networking of university ecosystems
- Standardized blueprints for licensing and participation in intellectual property
- Public procurement reforms for easier access to public contracts
4. Talent Acquisition: The Blue Carpet Initiative
Europe is fighting for the best minds in the global “War for Talents”. The Blue Carpet Initiative addresses this by:
- Accelerated visa procedures for startup founders from third countries
- Harmonised employee stock options for better talent retention
- Cross-border work regulations for remote work
- Promoting entrepreneurial education through Erasmus+
5. Infrastructure and Networks
Access to research and technology infrastructures will be standardized through a “Charter of Access”. Startups will also receive financial support for access to AI computing facilities.
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Concrete implementation and timeline
The strategy will be implemented through concrete measures with clear timelines:
2025
- Launch of the Blue Carpet Initiative
- Expansion of the EIC with a budget of 1.4 billion euros
- Development of the European Business Wallet
2026
- Proposal for the 28th regime (Q1 2026)
- Launch of the Scaleup Europe Fund
- Launch of the Lab to Unicorn Initiative
2027
- First company founded under the 28th regime
- Full implementation of the strategy
Economic impact
The EU's existing funding programs have already shown impressive results: Over 13,600 EU-funded startups have achieved a total valuation of €520 billion. These companies have also mobilized an additional €70 billion in private venture capital and represent approximately 10% of the total value of all VC-funded startups in Europe.
Despite praise from the startup community, experts urge caution. The German Chamber of Industry and Commerce (DIHK) emphasizes that “concrete and practical implementation steps” are crucial. David Hanf from the European Startup Network explains optimistically: “If even just a third of the measures are successfully implemented, this will represent a significant step forward.”.
A historic opportunity for Europe
The EU Startup Strategy represents the most ambitious attempt to establish Europe as a global innovation hub. With a combined investment volume of over €10 billion for the Scaleup Fund alone, and billions more through existing programs such as Horizon Europe, the EU is creating the financial foundation for a new era of innovation.
Success will ultimately depend on the successful implementation of complex regulatory reforms and the harmonization of diverse national interests. If this is achieved, Europe could indeed become the leading destination for technology-driven startups and reduce its dependence on other innovation regions.
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