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The European Commission launched a new initiative this week to help 100 deep-tech startups become unicorns, as the bloc looks to accelerate growth in green and digital technologies.
FREMONT, CA: This week, the European Commission has launched a new initiative intending to assist 100 deep-tech startups in becoming unicorns, as the European Union seeks to expedite the growth of green and digital technologies. EU tech chief Margrethe Vestager, who unveiled the EIC Scale Up 100 initiative at a deep tech conference in Stockholm, stated that they will identify Europe’s future tech champions, engage with them and provide support throughout their scaleup journey.
The selected "future tech champions" will be chosen from a pool of startups already participating in national and EU-led European innovation programs. The EU executive clarified that only the most successful startups would be chosen. The selection process will focus on areas that contribute to Europe's green and digital transformation, such as climate, energy, digitalisation, and health. Vestager emphasised the significance of supporting scale-ups, stating that it is their best opportunity to create homegrown tech giants through a crucial decision for digital and energy resilience.
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The European Innovation Council (EIC) will oversee the entire process. Vestager compared the EIC to a factory of European unicorns and highlighted that it has already produced 12 startups valued at USD one billion or more, including Dutch vertical farming startup Infarm and Swedish 3D bioprinting startup Cellink. Additionally, the EIC has nurtured 112 'centaur' companies, which are firms generating an annual recurring revenue exceeding USD 100 million.
EU member states and countries associated with Horizon Europe, the EU's scientific research initiative, will have the opportunity to propose companies from their respective ecosystems for participation, pending the selection process.
The chosen startups will receive support from a collective known as the EIC Scaling Club. This group consists of 100 investors from venture capital, growth, and government funds, 100 companies with innovation units, and 100 independent mentors.
The primary objective of this initiative is to facilitate annual growth of 40% in the valuation, new investments, partnerships, and job creation for the participating startups. Additionally, the aim is to achieve a 50 per cent growth across these parameters for the top 20 performing companies within a two-year time frame.
Vestager expressed her confidence in the initiative, stating that EIC Scale Up 100 will demonstrate that Europe is the most desirable destination for future global unicorns and their investors.
This program is part of the New European Innovation Agenda, which was introduced last year. The agenda aims to enhance funding opportunities for scaleups, foster deep tech expertise, and implement more effective policy tools.
The European Union has been actively promoting digital transformation and sustainability through various initiatives. One of the key initiatives is the Digital Single Market Strategy, aimed at creating a seamless digital market within the EU, fostering innovation, and enabling digital businesses to thrive. The EU has also set ambitious climate goals as part of its Green Deal, with a focus on transitioning to a more sustainable and low-carbon economy.
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