Observed Signal · Jan 31, 2025 · Policy Update · Source: Trending Topics · Impact: 2/5 · Sentiment: Positive
EU Commission to Present Startup and Scale-Up Strategy by Summer
The European Commission has announced plans for a dedicated EU startup and scale-up strategy, to be presented by Q2 2025 as part of its 'compass for competitiveness.' The strategy aims to reduce regulatory obstacles for young companies, improve cooperation between universities and businesses, boost patent commercialization, and address fragmented access to venture capital, talent, and innovation support. A proposed '28th legal order' would create a single EU-wide set of rules for startups, covering company, insolvency, labor, and tax law, with a proposal expected between Q4 2025 and Q1 2026. Additional measures include the 'Savings and Investments Union' set for Q1 2025 and a TechEU investment program developed with the European Investment Bank and private investors. The announcement follows concerns about EU competitiveness in AI and other future technologies. A separate grassroots proposal called 'EU Inc' was also referenced.
EU-level startup and scale-up policy could improve access to venture capital and reduce regulatory friction for European tech startups, including AdTech/MarTech, but it is a broad policy announcement without AdTech-specific measures.
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Key Takeaways & Evidence Grounding
- The EU Commission will present a startup and scale-up strategy by Q2 2025.
- A '28th legal order' proposal would create a single EU-wide legal framework for startups, covering company, insolvency, labor, and tax law.
- The 'Savings and Investments Union' is scheduled to be presented in Q1 2025 to mobilize private capital.
- The TechEU investment program is planned as a partnership between the European Investment Bank and private investors.
- The startup strategy targets improved university-business links, patent commercialization, venture capital access, talent mobility, and innovation support.
Connected Companies & Entities
1 Entity mapped“A TechEU investment program as a partnership between the European Investment Bank (EIB) and private investors is intended to be a new lever....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
EU and EIB Launch Institutional Investor Pact to Boost Scale-up Funding
The European Commission and the European Investment Bank (EIB) Group have launched the European Institutional Investors Pact (EIIP), a voluntary framework to channel long-term institutional capital into Europe's technology and scale-up ecosystem. Unveiled at the TechEU Equity Summit in Luxembourg, the pact aims to address Europe's late-stage funding gap, particularly for rounds above €100 million. Thirteen institutional investors have signalled intent to invest, primarily through the €15 billion European Tech Champions Initiative (ETCI) 2.0 and the €5 billion Scaleup Europe Fund. The EIIP comprises a Policy Dialogue Forum led by the Commission and an Investment Platform led by the EIB Group, designed to provide investors with access to venture capital and growth equity opportunities. The initiative is part of the EU Startup and Scaleup Strategy, with the goal of helping European companies scale without seeking capital outside the bloc.
Morphotonics raises €40M for display tech, data center expansion
Dutch nanoimprint lithography company Morphotonics has raised over €40 million in Series B funding to scale production of its display technology and expand into optical components for data centers. The round included continued backing from 3M Ventures, Innovation Industries, and BOM, with Invest-NL as a major new investor, alongside the EIC Fund, Ernij Next, and the European Investment Bank. Morphotonics specializes in large-area nanoimprint lithography, particularly its Cypris platform, for manufacturing waveguides used in AR glasses like Meta Ray-Ban Display, Even Reality, and Magic Leap. The funding will boost production capacity, product development, and team growth. The company has doubled headcount to 60 since September 2024, its next machine can produce over 6 million waveguides annually (shipping early 2027), and it is also targeting co-packaged optics for data centers, with hardware sales currently making up 90% of revenue.
Finnish SMR Startup Steady Energy to List via Merger, Raises €40M from EIB
Finnish nuclear technology startup Steady Energy, a spin-off from VTT, plans to go public on the Nasdaq First North Growth Market Finland through a merger with investment firm 3North Partners (3NP). The company, which develops the LDR-50 small modular reactor for district heating, aims to raise over €100 million, including a €69.8 million subscription from institutional and strategic investors like Elo, Ilmarinen, Varma, Fortum, Orlen's VC arm, Tesi, and others. Additionally, the European Investment Bank (EIB) provided a €40 million convertible loan, marking its first financing for an SMR company. The company operates on two models: traditional EPC sales and Heat as a Service (HaaS). The listing will offer shares at €10, and the post-money valuation is estimated at €330 million. The company aims for revenue of €500 million by 2035 and 70 reactors delivered by 2045, with core markets in Finland, Sweden, Poland, and Czechia.
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