Published on: June 12, 2025 / update from: June 12, 2025 - Author: Konrad Wolfenstein
EU billion injection for startups “Choose Europe to Start and Scale”: The new funding strategy in Europe-creative image: Xpert.digital
Europe's answer to Silicon Valley: New billion-in strategy for tech startups
Game Changer for European founders: EU presents pioneering Scaleup strategy
On May 28, 2025, the European Union presented a groundbreaking startup and Scaleup strategy called “Choose Europe to Start and Scale”, which is intended 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 is responding to an alarm development: Almost 30% of European Unicorns have migrated from the EU between 2008 and 2021, mainly to the USA, where there are better growth conditions. 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 in order to set up and grow a company".
The five pillars of the revolution
1. Innovation -friendly regulation: the 28th regime
The heart of the reform is the introduction of an optional, EU-wide legal framework-the so-called “28th regime”. This revolutionary system enables startups and scaleups to operate with a single set of rules in all 27 EU member states instead of having to navigate through various national legal systems.
The core elements include:
- Fully digital company foundation within 48 hours of Europe
- Uniform rules in social, bankruptcy, labor and tax law
- Reduction of failure cost by harmonized insolvency regulations
- European Business Wallet as a digital identity for seamless authorities
A corresponding proposal should be presented in early 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 euros. This public-private fund is to start in 2026 and promote strategic sectors such as artificial intelligence, quantum technology, cleanestech, semiconductor, advanced materials and biotechnology.
The structure of the fund:
- Four times more private than public capital
- Administration by private investment managers
- Focus on companies from 100 million euros in financing rounds
Expansion of the European Innovation Council (EIC)
The EIC is significantly expanded and simplified, with a budget of over 1.4 billion euros for 2025. The most important programs include:
- EIC Accelerator: 634 million euros for startups and SMEs with grants up to 2.5 million euros and equity 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
Each public euro mobilizes more than three euros in private investments.
3. Accelerated market development: Lab to Unicorn
The “Lab to Unicorn” initiative aims to accelerate the commercialization of research results. The core elements are:
- European startup and scaleup hubs for better networking of university ecosystems
- Standardized blueprints for licensing and participation in intellectual property
- Publisher reforms for easier access to public orders
4. Talent recovery: The Blue Carpet Initiative
Europe is fighting for the best heads in the global “War for Talents”. The Blue Carpet Initiative addresses this by:
- Accelerated visa procedure for startup founders from third countries
- Harmonized employee shares for better talent binding
- Cross -border work regulations for remote work
- Promotion of entrepreneurial education via Erasmus+
5. Infrastructure and networks
Access to research and technology infrastructures is standardized by a “charter of access”. In addition, startups receive financial support for access to AI computing systems.
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Concrete implementation and schedule
The strategy is implemented with clear schedules through concrete measures:
2025
- Start of the Blue Carpet Initiative
- Extension of the EIC with 1.4 billion euros in budget
- Development of the European Business Wallet
2026
- Proposal for the 28th regime (Q1 2026)
- Start of the Scaleup Europe Fund
- Launch of Lab to Unicorn Initiative
2027
- First foundation of the company under the 28th regime
- Full implementation of the strategy
Economic impact
The previous EU funding programs already show impressive successes: over 13,600 startups funded by the EU have achieved an overall rating of 520 billion euros. These companies have mobilized an additional 70 billion euros in private venture capital and accounts for around 10% of the total value of all VC financed startups in Europe.
Despite the praise from the startup community, experts warn for caution. The DIHK emphasizes that “concrete and practical implementation steps” are decisive. David Hanf from the European Startup Network explains optimistically: "Even though only a third of the measures are successfully implemented, this will represent a significant step forward".
A historical opportunity for Europe
The EU startup strategy is the most ambitious attempt to establish Europe as a global location of the innovation. With a combined investment volume of over 10 billion euros alone for the Scaleup Fund and another billion through existing programs such as Horizon Europe, the EU creates the financial basis for a new era of innovation.
The success will ultimately depend on whether it is possible to implement the complex regulatory reforms and harmonize the various national interests. If this succeeds, Europe could actually become the first address for technology -driven company foundations and reduce its dependence on other innovation regions.
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