EU Plans €10 Billion Scaleup Fund to Retain Tech Startups

The European Commission has announced the launch of the Scaleup Europe Fund, a public-private investment initiative expected to reach at least €10 billion, aimed at preventing European tech startups from relocating abroad and helping them scale within the EU. This fund targets high-growth sectors like AI, quantum technology, semiconductors, and biotech, addressing the current lack of late-stage venture capital in Europe, which lags behind U.S. funding by a factor of seven. Alongside financing, the Commission plans to simplify regulations through a new legal framework called the “28th regime” to harmonize tax and labor laws, enabling startups to register within 48 hours across member states. The broader “Choose Europe to start and scale” strategy also seeks to improve access to markets, talent, and infrastructure, while mobilizing private savings for investments via the Savings and Investments Union. EU officials emphasize the need to reduce the administrative burden and regulatory fragmentation that hinder startup growth and competitiveness on the global stage. This comprehensive approach aims to position Europe as a global innovation hub, retaining talent and promoting economic growth by supporting startups through critical growth phases.