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From €12 billion to €520 billion: EU-funded startups show massive ROI – but face scaling gap
- A report on startups backed by the EU's Framework Programmes reveals that with just €12 billion in public support, over 13,600 startups have collectively generated €520 billion in enterprise value.
- EU-backed startups are delivering high impact, particularly in areas like AI, biotech, quantum, and climate tech, showcasing the need to scale successful initiatives.
- EU support in a startup's history is viewed positively by investors, aiding in de-risking innovation and attracting further investment.
- Public programmes, like the European Innovation Council (EIC), are helping startups develop breakthrough innovations and strengthen Europe's technological sovereignty.
- Despite success in technical depth, many EU-backed startups face challenges in scaling beyond Series A and require more than capital to advance.
- Countries like the Czech Republic are leveraging EU alignment to excel in deep tech and compete globally, showing success in cybersecurity, AI, quantum computing, and medtech.
- Founders are advised to align their technology with the right readiness level, match products with EU missions, and create a value proposition combining business case with public impact for success.
- Recommendations include establishing faster startup-specific funding tracks, improving equity disbursement clarity, enhancing university-to-startup spinout support, and scaling visibility platforms for startup-investor matchmaking.
- The key challenge lies in connecting EU-backed startups to private capital effectively to ensure sustainable growth and global competitiveness.
- To compete globally, Europe must fund earlier, move faster, and strengthen the bridge between public support and private growth, as highlighted in the report.
- The report offers valuable insights on how EU-backed startups are advancing critical sectors and provides clear takeaways for founders, investors, policymakers, and corporates.
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