New Investment Volume Released as Part of Independent Series Supporting the EU Startup and Scaleup Agenda
The Europe Startup Nations Alliance (ESNA) has released the second volume of its strategic five-part series aimed at supporting the implementation of the EU Startup and Scaleup Strategy. Launched today in Lisbon, the new publication focuses on unlocking capital for European startups and offers a practical roadmap to boost innovation and entrepreneurship across the continent.
Lisbon, 17 June 2025 – Titled “Building a Competitive Europe the role of startup and scaleup ecosystems – Volume 2: Investment”, the document builds on the groundwork of the Regulatory Barriers Report (Volume I) and puts forward concrete recommendations to improve funding access across Europe’s startup ecosystem.
Part of a broader effort to complement the European Commission’s renewed focus on startups and scaleups, the publication translates EU ambition into actionable national reforms. It delivers evidence-based policy actions to address persistent investment barriers while remaining aligned with strategic EU priorities.
Developed through a collaborative process led by Carolina Rossi, Head of Network and Strategic Initiatives of ESNA, the volume counted with the insights of ESNA Advisory Board, the Network & Strategic Initiatives Department, and of the official partner Invest Europe, offering a practical, market-grounded resource for policymakers, investors, and ecosystem actors, anchored in both present realities and long-term vision.
It also features policy benchmarking, implementation pathways, and case studies to inform national strategies across Member States.
Three Strategic Investment Actions
Addressing a major bottleneck for European innovation - risk capital - the Investment Volume proposes three core policy levers:
Unlocking Institutional Capital: Promote greater pension and insurance fund allocation to European venture capital. ESNA recommends targeted regulatory reforms to IORP II and Solvency II, and a 5% VC allocation.
Incentivising Angel Investment: Expand tax incentives to build stronger ties between angels, corporates, and VCs. Proposals include income tax deductions, capital gains exemptions, and loss relief mechanisms, using example such as, the UK’s SEIS and EIS as benchmarks.
Reforming Public Funding: Align innovation funding with startup needs and strategic growth sectors. Key measures include increasing public startup funding shifting from grants to convertible loans and deploying public-private co-investment models.
A Strategic and Empirical Vision
The Volume is structured to move policymakers from context to execution, with key sections including:
Setting the Scene – Risk appetite, investor insights, and the case for a Savings and Investment Union
Mapping Europe – EU-level frameworks and financial tools
Advisory Board Perspectives – Empirical grounding for each proposed action
National Policy Mapping – Comparative Member State insights
Solutions and KPIs – Clear metrics and performance levers
Phased Roadmap – Three-year national and EU-level implementation plan
Together, these sections offer a coherent framework connecting EU ambitions with actionable, Member State-level reforms.
A Call for Strategic Collaboration from ESNA and Invest Europe
As Europe’s startup ecosystem matures, a harmonised, innovation-driven investment strategy is more urgent than ever. This Volume presents a shared roadmap to unlock Europe’s entrepreneurial potential—driving inclusive growth, global competitiveness, and long-term resilience.
On the occasion of the launch, ESNA’s Executive Director stated: “This Volume is a major step toward breaking persistent investment barriers in Europe. By proposing actionable reforms—mobilising institutional capital, empowering angel investors, and making public funding more catalytic—we offer a concrete path to unlock private investment at scale. It reflects the combined insight of our Advisory Board and our partner Invest Europe, grounded in market reality and strategic ambition.”
Eric de Montgolfier, CEO of Invest Europe, ESNA’s partner in this publication, added: Invest Europe welcomes ESNA's Investment Volume, which sends a timely signal about the direction the Startup and Scaleup Strategy must take, one that puts private capital mobilisation at the centre. Recognising the role of private capital - and aligning public tools to crowd it in - must remain at the heart of the Strategy to help Europe’s most innovative companies grow and lead globally.”
Further volumes in this five-part series—focusing on Entrepreneurial Culture and Talent—will be released later this year. A final volume on Intellectual Property and Technology Transfer will conclude the series.
Together, these publications aim to offer timely, reform-oriented contributions to Europe’s startup policy agenda at a crucial moment for its global competitiveness.