The European Commission has launched a comprehensive strategy to foster and grow small-scale tech startups, as part of a broader Choose Europe initiative aimed at competing with major powers like China and the USA. This initiative aims to attract and empower small businesses, displacement of 8% of all tech startups worldwide, while addressing critical gaps in funding and regulation. A report highlighting that 61% of global AI funding is|h/07/2025/—The European Commission launched a strategy designed to foster and grow small tech start-up companies on Wednesday as part of a broader Choose Europe initiative aimed at competing with China and the US.| página 2/5|
At the heart of this strategy is a call to ease administrative barriers for startups, with the aim of reducing unnecessary costs and increasing their scale. This involves streamlined funding processes and dedicated support from authorities. The government also aims to simplify the setup process for new start-ups, enabling them to grow within the EU’s diverse member states in just 24 hours. The plan includes initiatives to allocate more resources to small-scale innovations, particularly as China and the US continue to dominate the global tech scene.
Another key focus of the project is the improvement of legal frameworks for start-ups. By collaborating with private investors and fostering investor-analyst partnerships, the strategy seeks to reduce market fragmentation. The European Commission has proposed a fund, based on public-private partnerships, which will support early-stage startups during their growth phases. This fund will aim to attract 30,000 startups, aiming to help smaller companies unlock resources and CGI, encouraging them to scale operations responsibly.
The success of a company remains a top priority, which is why the funding proposal includes measures to reduce the risks associated with market failure in start-up projects. By addressing insolvency issues, the strategy aims to safeguard investors and ensure a stable foundation for future growth. Additionally, efforts will be made to strengthen legitimacy proof, clarity, and transparency in tech startups as these projects progress.
Overall, the European Commission’s efforts are diverse, encompassing financial support, regulatory simplicity, and institutional collaboration to create a supportive environment for small tech startups. The ultimate goal is to leverage these aspiring innovators as key drivers of the EU’s growth narrative, contributing to innovation and economic resilience.
