Empowering Europe's Startup Ecosystem - Have Your Say!

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Want to help make Europe a better place for startups? Monday is the deadline to respond to the EU's Call for Evidence on its Startup and Scaleup strategy. @ProgressChamber we have a few ideas on what would help 🧵

🚀 Europe’s startup ecosystem is struggling—not because of talent, but because of red tape and weak investment. Our response outlines 3 urgent fixes: 1️⃣ Cut administrative friction 2️⃣ Create the 28th regime 3️⃣ Unlock capital for scale-ups

1️⃣ Europe doesn’t have a Single Market for entrepreneurs. We often talk about "the single market" for capital, people, goods, and services, but for entrepreneurs looking to start a business and expand, its still highly fragmented in all the ways that matter.

Startups expanding across the EU still face 27 different regulatory systems. Instead of scaling, they waste time navigating bureaucracy. This is a growth killer. We need less friction, so entrepreneurs can build velocity and scale to globally competitive levels.

🛑 The cost of inaction is huge. 🔹 More than 30% of European unicorns relocate abroad 🔹 Europe accounts for just 5% of global VC 🔹 The EU has seen fewer tech IPOs in 8 years than the U.S. did in 2021 alone Europe can be a startup powerhouse—but policymakers have to act.

🚨 First Fix: Cut Administrative Friction Listen to what start-ups really need, and but their needs at the heart of reforms. ✨ Second Fix: The 28th Regime

The EU needs a fully unified legal framework for startups—a 28th regime that lets companies scale under a single set of rules. Incredible work has been done by European entrepreneurs and startups to develop these ideas. Listen to them. x.com/KayJebelli/status/1845895549456994557

Key features of the 28th regime: 🔹 One company status, recognized across all member states 🔹 Digital-first incorporation and compliance 🔹 No redundant national filings, no conflicting rules 🔹 Designed for startups, not large corporates

Fantastic work has been done on this by a range of start-up associations. Check out this paper signed by over 20 associations going deep into the details. francedigitale.org/en/posts/for-a-28th-european-regime

💰 Third Fix: Fixing Europe's Investment Problem Startups can’t scale without funding. But Europe’s capital markets are fragmented, shallow, and risk-averse. 🔹 VC is scarce (Europe has only 5% of global VC) 🔹 IPO markets are weak 🔹 Pension funds barely invest in startups

🛑 Europe’s Investment Barriers: 1️⃣ Weak Exit Markets – Fewer IPOs, less capital recycling 2️⃣ Limited VC Funding – Smaller, risk-averse, fragmented 3️⃣ Locked-up Pension Funds – Less than 0.1% goes to venture capital Without change, we’ll keep losing high-growth companies.

🔓 How to Unlock Capital for European Scale-ups ✅ Stronger IPO markets – A unified EU-wide stock exchange for tech startups ✅ Unlock pension funds – Incentivize long-term investment in venture capital ✅ Harmonized cross-border VC rules – Simplify investment & tax reporting

✅ More friendly M&A rules – it is essential for startup ecosystems. When startups can exit through acquisitions, investors see returns, reinvest & fuel the next wave of innovation. This works even when products fail! A soft exit is the best way to maintain ecosystem velocity

🇪🇺 The EU has the tools—now it needs to act. ✔️ The 28th regime can remove regulatory friction ✔️ Investment reform can ensure startups have the capital to scale ✔️ A startup-centric approach will attract the world's best and brightest

💡 The Commission must prioritize founders. Startups don’t do endless consultations. The EU must go beyond think tanks and academics, and listen to the people actually building the companies. 🚀 Let’s make Europe the best place in the world to start, scale, and succeed.

You might disagree but now is the time to be heard! You can see our full feedback at the link below ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14530-EU-Start-up-and-Scale-up-Strategy/F3527328_en

And here's where you can contribute your own ideas: ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14530-EU-Start-up-and-Scale-up-Strategy_en