Authors’ note: This article presents a growth blueprint from IRB and ESNA, featuring insights from ESNA’s Executive Director, Arthur Jordão.
Evidence increasingly supports public innovation funding’s effectiveness. Startups backed by EU programs have created over €560 billion in enterprise value, with many subsequently raising an additional €70 billion in private capital. However, to unlock Europe’s full potential, further assistance is needed for these companies at every stage of their development.
This is the argument made in Startups backed by the EU’s Framework Programmes, a fresh report from the Innovation Radar Bridge (IRB) project. Utilizing data from Innovation Radar, Dealroom, and EU monitoring tools, it indicates what’s effective and what actions are essential next: more startup-focused funding, a streamlined support process, and increased visibility for promising startups.
Notably, IRB isn’t the only entity advocating for action. The European Startup Nations Alliance (ESNA) independently highlights a complementary set of priorities in its annual Startup Nation Standards (SNS) report, drawing on data from 24 EU nations.
A common ground: Alignment between the ESNA and IRB reports
Though distinct, both reports converge on several core recommendations for enhancing Europe’s startup ecosystem. Together, they offer a comprehensive, complementary blueprint, from funding and visibility to access and inclusion. Below are three significant areas of alignment, complemented by insights from ESNA’s Executive Director, Arthur Jordão.
- Digital-first, simplified access
Both ESNA and IRB emphasize the necessity for quicker, more coordinated startup support access points, highlighting digital infrastructure’s role in facilitating this.
ESNA’s “Startup Fast Lane” proposal aims to provide founders with a single online platform for navigating national administrative requirements and funding options, supported by help desks across Member States. Similarly, IRB advocates for a centralized EU program entry point, with continuous submissions and reduced review timelines of 2-4 weeks.
“Early-stage startups often operate with limited time and resources. Lengthy or costly registration processes can delay or deter new ventures. ESNA envisions achieving this goal through fully digital, efficient, and affordable procedures, backed by inter-agency coordination and political will.” – Arthur Jordão, ESNA
- Access to funding
Both reports pinpoint the crucial issue of improving funding pathways for startups. IRB suggests startups receive a larger share of future Framework Programmes, while ESNA recommends Member States direct their Recovery and Resilience Facility (RRF) towards venture capital. Regarding private capital, IRB calls for more private VC funds familiar with the European grant pipeline to lead rounds, and ESNA suggests tax relief for business angels.
“Funding access remains a pressing challenge for startups across Europe. SNS advocates for better access to both public and private capital, including targeted tax incentives for early-stage investors.” – Arthur Jordão, ESNA
- Visibility and promotion
Both IRB and ESNA stress the importance of enhanced visibility for startups from complementary perspectives. IRB recommends more structured promotion of EU-backed startups via summits, pitch and demo days, and improved data tools to aid funding and partnerships. It also advises using digital tools like Dealflow.eu and Innovation Radar for real-time startup data and matchmaking. ESNA adds another critical dimension: ensuring this visibility reflects the diversity and values of Europe’s startup ecosystem, from showcasing underrepresented founders to fostering inclusive innovation.
“While initiatives like the EU Startups Summit and the EIC community platform provide a solid foundation, they should be expanded… This report is a starting point, but further efforts are needed to continuously showcase how EU-backed startups address critical trends. As highlighted by ESNA, consistently publishing research—and promoting it through both mainstream and niche media—is essential for enhancing Europe’s innovation brand.” –
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