European Commission Startup and Scaleup Strategy: What Are the Plans?

The European Commission has sent a clear message with its EU Startup and Scaleup Strategy: Europe wants to become a more attractive place for innovative companies to start, scale and compete globally.

Under the “Choose Europe” agenda, the Commission wants to reduce barriers for startups and scale-ups and attract more private capital into innovation.

This matters for the Netherlands. Dutch startups, scale-ups, investors, private equity funds and corporate finance advisers operate in a European market that offers significant opportunities, but remains fragmented. Companies that want to grow across Europe often face different national rules, limited access to larger growth rounds, varying tax and employment regimes, and a relatively small home market when viewed on a Member State-by-Member State basis.

This article first explains what the European Commission is planning. It then briefly discusses what this may mean for Dutch companies, investors and deal practice.

What does the European Commission want to achieve?

The core objective is straightforward: European startups should not only be founded in Europe, but also be able to scale in Europe.

The Commission wants to prevent innovative companies from moving too early to the United States or other markets because those markets offer more capital, greater scale or simpler growth conditions.

The strategy is especially relevant for technology-driven companies, deeptech, AI, defence, energy, digitalisation, healthtech, R&D-intensive businesses and other strategic sectors where Europe wants to reduce dependency on US and Chinese technology.

The main plans of the European Commission

The EU Startup and Scaleup Strategy contains several policy lines that are relevant for founders, investors and advisers.

• Less fragmentation within the internal market.
  Startups and scale-ups should be able to operate more easily across multiple EU Member States. The Commission wants to reduce barriers caused by different national rules, administrative requirements and procedures.
• Faster and simpler company formation and growth.
  The Commission wants to make it easier for innovative companies to start and expand within Europe. This includes broader work on simplifying legal and administrative frameworks for startups and scale-ups.
• Better access to finance.
  A central issue is the European scale-up funding gap. European companies often struggle to raise larger growth rounds compared with US competitors. The Commission wants to mobilise more capital for European innovation.
• Scaleup Europe Fund.
  The Commission wants to work with the European Investment Bank Group and private investors on a Scaleup Europe Fund to address the late-stage funding gap for European scale-ups, especially in deeptech and strategic technology sectors.
• European Innovation Investment Pact.
  The Commission wants to encourage institutional investors to invest more in European venture capital funds, funds-of-funds and unlisted scale-ups. This is intended to mobilise long-term private capital for European innovation.
• More support for deeptech and strategic sectors.
  The plans focus on technology, AI, defence, energy, digitalisation, biotech, life sciences, advanced materials and other sectors important for European competitiveness and strategic autonomy.
• Better commercialisation of R&D.
  The Commission wants innovation to move more quickly from research to market. This means more attention to universities, research institutions, intellectual property, technology transfer, testing environments and commercial scale-up.
• Talent and employee ownership.
  Startups compete with larger companies for talent. The Commission therefore wants to improve conditions for employee participation and stock options, so that young companies can attract and retain key people.
• New European innovation tools and less red tape.
  The strategy is linked to broader simplification initiatives, including work on innovation-friendly regulation, regulatory sandboxes and sector-specific initiatives for areas such as biotech, life sciences and advanced materials.
• More cooperation between corporates, investors and startups.
  The Commission wants to strengthen links between large companies, investors and the European innovation ecosystem. This may lead to more corporate venture deals, strategic partnerships, joint ventures and acquisitions.

Why this matters for the Netherlands

For the Netherlands, this is not an abstract Brussels policy agenda. Dutch startups and scale-ups often have a strong starting position: good technology, internationally oriented founders, strong universities, an open economy and access to European markets.

But the scale-up phase remains difficult.

Larger financing rounds can be harder to raise than in the United States. The European market remains legally and commercially fragmented. International investors expect clear governance, understandable shareholder arrangements and a structure that does not block future rounds or exits.

That is why the EU strategy directly affects Dutch deal practice. If Europe wants to attract more private investment into innovation, Dutch companies must be legally ready to receive that capital.

This connects with broader ViottaLaw themes such as Dutch VC terms and Dutch BV structures, Dutch BV governance for US and international investors and investing in and through the Netherlands into Europe.

What does this mean for Dutch startups and scale-ups?

For startups and scale-ups, European support only creates value if the company is also transaction-ready.

That requires a clean cap table, properly documented intellectual property, professional governance, clear shareholder arrangements and financing documentation that works for follow-on rounds. Companies should also consider employee participation, founder vesting, information rights, investor protections and exit arrangements.

A Dutch scale-up that later wants to attract an international investor, corporate partner or buyer should not wait until a term sheet is already on the table. By that point, key commercial expectations may already be fixed and legal restructuring may become harder.

What does this mean for investors and private capital?

For venture capital, growth investors and private equity, the strategy suggests that European technology companies will receive more attention. This is particularly true for companies in AI, software, deeptech, defence, energy, healthtech, digitalisation and B2B technology.

But investing in innovative companies requires more than capital. Investors need to assess IP ownership, data rights, governance, information rights, management incentives, financing flexibility and future exit structures.

For private equity, the point is also relevant because more buy-and-build strategies are becoming technology-driven. The legal structure must support not only the first acquisition, but also future add-ons, refinancing, management participation and exit readiness.

Dutch BV as an implementation tool

The Dutch BV can be a strong vehicle for European growth and international investment. It is flexible and can be combined with shareholder arrangements, financing instruments, management participation and holding structures.

But international investment concepts must be translated carefully into Dutch law. This includes preferred shares, liquidation preferences, anti-dilution, board consent rights, investor vetoes, convertible loans, venture debt and founder vesting.

These concepts can often be implemented, but not automatically on a one-to-one basis. The articles of association, shareholders’ agreement, distribution rules, board decision-making and notarial steps must work together.

Practical points for Dutch companies and investors

For Dutch companies, investors and advisers, the practical points are clear:

• keep the cap table suitable for follow-on rounds;
• document IP, software, data and R&D rights properly;
• make governance understandable for international investors;
• align shareholder arrangements with growth financing and exit;
• assess early whether venture debt, shareholder loans or hybrid capital are appropriate;
• in strategic sectors, consider FDI screening, export control, sanctions and regulatory approvals;
• avoid joint ventures or commercial partnerships that block future financing or exit.

Conclusion

The European Commission wants to create a more innovation-friendly environment through its Startup and Scaleup Strategy. The plans focus on less fragmentation, better access to capital, the Scaleup Europe Fund, deeptech, R&D, talent and more private investment.

For the Netherlands, this creates an opportunity. Dutch startups and scale-ups may benefit from stronger European attention to innovation and private capital. But policy is not enough. Companies must be legally and transactionally ready to attract capital, enter into partnerships and scale internationally.

The practical question is therefore not only what Brussels will do. The question is also whether Dutch companies, investors and advisers have their structures ready for the next phase of growth.

FAQ

What is the EU Startup and Scaleup Strategy?

The EU Startup and Scaleup Strategy is a European Commission strategy to make Europe more attractive for innovative startups and scale-ups. It focuses on financing, less fragmentation, better market access, talent and support for technology-driven companies.

Why is this relevant for Dutch startups?

Dutch startups often want to grow internationally. To do that, they need capital, governance, IP protection, employee participation and clear shareholder arrangements.

What is the Scaleup Europe Fund?

The Scaleup Europe Fund is a planned initiative involving the Commission, the European Investment Bank Group and private investors to create larger funding opportunities for European scale-ups, especially in deeptech and strategic technology sectors.

What does this mean for investors?

Investors may see more European attention for innovation, deeptech and strategic sectors. At the same time, legal structuring remains essential for financing, governance, information rights and exit.

Is the Dutch BV suitable for international scale-up financing?

Yes, but international investment concepts must be carefully translated into Dutch articles of association, shareholders’ agreements, governance and financing documentation.

About Dirk de Waard

Dirk de Waard is a Dutch corporate and M&A lawyer and partner at Venture Lawyers in Amsterdam. He advises founders, investors, private equity funds, management teams and international companies on Dutch M&A transactions, venture capital, private equity, shareholder arrangements, governance and deal implementation.

Preparing a startup, scale-up or investment structure in the Netherlands?

The European plans for startups and scale-ups only become relevant when translated into workable legal structures. For founders, investors and private capital parties, this means financing, governance, IP, shareholder arrangements, management participation, debt and exit options.

Dirk de Waard advises founders, investors, private equity funds and scale-ups on Dutch M&A, venture capital, private equity, shareholder structures and deal implementation. Contact Dirk at dirk.dewaard@viottalaw.com to discuss the Dutch legal implementation of an investment, growth structure or private capital transaction.