What the new EU Startup and Scaleup Strategy means for Greek startup founders

At the latest webinar from Allied For Startups, Elena Martines, Member of the EU Cabinet, and Andras Inotai, Head of Taskforce on Startups & Scaleups at the EU Commission, shared exciting news about the new EU Startup and Scaleup Strategy plan named “Choose Europe to start and scale.”

The plan aims to make Europe the best international hub for launching and growing tech companies, but why is this initiative particularly relevant for Greek startups?

Stop the brain-drain

Keeping talent within their borders is a widespread struggle for multiple European countries. Especially for Greece, startups founded abroad by members of the Greek diaspora significantly outnumber those established within the country. Regarding funding, Greek diaspora startups raised nearly seven times as much in debt and equity as those based in Greece did in 2021.

Therefore, the Strategy offers support for the best talents in Europe. This is concretely done through the implementation of initiatives like digital nomad visa schemes, e-residence digital IDs and qualified worker programs. Additionally, the EU Commission aims to upskill entrepreneurial education in secondary schools and universities through the Blue Carpet initiative. The latter, fully enabled between 2025 and 2026, will further support the attraction and retention of skilled talent within the EU and from non-EU countries. The same initiative develops a blueprint for an academic career development framework focusing on rewarding research commercialisation and transition from university to industry and back.

The Blue Carpet initiative will also offer better employee stock options practices for startups, the elimination of tax obstacles for remote startup/scaleup cross-border employees, the presentation of a Fair Labour Mobility Package, the adoption of an EU Visa Strategy to attract skilled students, researchers, and startup founders, and the piloting of the Multipurpose Legal Gateway Offices initiative which creates a place for information and assistance to professionals and students in the ICT sector.

Key challenges for startups in the EU and in Greece

Talent retention and entrepreneurial education aren’t the only issues that Greek startuppers have faced. Regulatory hindrances, inclusivity and diversity gaps, lack of financial aid and early-stage funding opportunities are among the most recurring difficulties experienced by startup founders in Greece.

When the Commission proposed the EU Startup and Scaleup strategy, the initiative was to address the challenges that several member states are experiencing. In particular, a double financial slowdown (also called the Valley of Death) — occurring when innovation from research fails to turn into marketable products, and when companies struggle to scale — was among the most concerning issues to address. This, alongside the need for European startups to access capital and deal with regulatory fragmentation within the Single Market, brought the Commission to craft the vision of the Strategy.

Structure of the Strategy

Here’s how the EU Startup and Scaleup initiative aims to improve the Single Market Strategy.

Making the regulation innovation-friendly

Through the European Innovation Act, the Commission will promote regulatory sandboxes for businesses to test innovative ideas, products and services. Upon execution of the Commission’s proposal of a 28th regime, a single set of rules for companies will also be established. The latter will include an EU corporate legal framework to overcome barriers and reduce failure costs. 

Additional measures include tax incentives, stronger administrative capacity, and the introduction of the digital European Business Wallet. This will further help businesses establish a digital identity while providing a framework for verified data sharing between economic operators and public administration across the EU. 

A voluntary Innovation Stress Test proposed by the Commission will also help Member States assess the impact of innovation when drafting and revising national legislation.

Enabling better finance for startups and scaleups

The Strategy offers substantial benefits for Greek and European startups and scaleups by expanding access to funding and removing obstacles to accessing State aid.

In particular, the Commission will present a co-financed Scaleup Europe Fund, working in cooperation with private investors, focusing on bridging the financing gap of deep tech companies. 

Integration into the European Corporate Network will make it possible for European startups to connect with large companies and investors to facilitate partnerships and market expansion.

Ultimately, the Commission, alongside the EU Intellectual Property Office, will develop a valuation framework to expand IP finance instruments.

 Speed up market update and expansion

As previously mentioned, the commercialisation of research results is a crucial priority to address to develop the European market. This is why the Commission plans to launch a Lab to Unicorn initiative supporting leading European Startup & Scaleup Hubs within university ecosystems. 

Due to the development of a blueprint for licensing royalty- and revenue-sharing participation, academic institutions and their investors will be further motivated to commercialise IP.

Additionally, the Commission will seek better ways to include startups and scaleups in procurements, focusing specifically on innovation and R&D services. 

Access infrastructure, networks and services

To keep up with the market competitiveness and the AI revolution, Greek startups, scaleups, and investors need better access to resources, services and infrastructures. This demand is addressed by the Commission and the Strategy through support in accessing AI computing facilities. 

Moreover, the development of a Charter of Access in coordination with the European Innovation Act will promote the access of innovative companies to more European research and technology infrastructure.

Finally, more guidance on the current applicable State Aid rules will aim to clarify the conditions under which universities and research organisations grant access to infrastructure.

Defining startups, scaleups and innovative companies

Following the absence of a single EU definition for startups, the Commission will propose some within the first quarter of 2026, taking into account the existing definitions of SMEs and small mid-caps. The setup of a European Startup and Scaleup Scoreboard will also measure the performance of European and national startup and scaleup ecosystems. 

The hope is that a harmonised definition of startups and scaleups will make it easier to design targeted policies for innovative companies and measure the impact of the Strategy.

At Startup Greece, we’re deeply involved in connecting, promoting, and empowering entrepreneurship for Greeks in Tech. This is why we want to encourage every Greek startup and innovative company to monitor the policy developments of the EU Startup and Scaleup Strategy, revise the upcoming regulations, and take action quickly to benefit from the new funding opportunities.