European unicorns are not a fairy tale (anymore)

By 2030, data, cloud, edge and quantum computing will drive industrial and societal innovation, creating new business models. I want European companies, in particular start-ups and SMEs, to seize all these opportunities in fast-growing markets.

To this end, we recently announced 2 billion euros in investment under the Digital Europe Programme : 330 million euros will be invested in the Digital Innovation Hubs to help lessen the digital gap between SMEs. We will also roll out the Digital Crash Courses for SMEs to strengthen advanced digital skills.

Beyond the need to accelerate the twin transition, the pandemic has shown us how much SMEs were exposed to disruptions across supply chains and the ensuing solvency issues.

We must continue to improve access to finance. The new temporary state aid framework – the Commission presented last week - offers new tools to stimulate investment and address solvency risks. These tools can help Member States to leverage private funds and invest in SMEs, including start-ups, and small midcaps.

“Boosting equity financing is crucial in light of the increasing indebtedness of companies”

The Recovery and Resilience Facility, the cornerstone of the EU’s recovery plan, is making unprecedented levels of funding available for greening, digitalisation, upskilling and vocational training in SMEs. According to our preliminary and still ongoing analysis, close to 75 billion euros could be invested to support SMEs.

I discussed this week with all EU ministers for industry how to make sure that the planned measures in the national recovery plans effectively reach SMEs. There is strong commitment to make this happen and I particularly welcome the active involvement of the network of national SME envoys.

We also exchanged how to ensure that strategic autonomy and breakthrough innovations benefit smaller companies. In this context, the Commission is facilitating participation of SMEs in the Important Projects of Common Interest, which can rollout breakthrough innovations in the areas such as microelectronics, hydrogen, or health.?

“This starts with start-ups and scale ups”

Rest assured that the Commission will continue to pay very close attention to start-ups and innovative SMEs.?We are well aware that if we want to keep a strong innovative edge, we need new comers, with their brand new solutions and business models. We have strategic tools to lead this new approach, such as the European Innovation Council. I was honoured to attend on this week its first Summit and I am delighted to see how fast things are moving.

This is also why, in March this year, we set up an EU Startup Nations Standard, signed by 26 EU Member States.?

Things are also moving fast on access to risk capital. European venture capital is reaching record-breaking amounts. We must keep this pace. InvestEU will support demonstration and deployment of disruptive innovation; and its ESCALAR initiative will increase the investment capacity of European venture capital funds.

“European unicorns are not a fairy tale”

We are putting in place, bloc by bloc, a conducive environment to game-changing innovation and technological leadership. One of Europe’s targets before the end of the decade is to double the number of European unicorns. Let me be clear: this not a fairy tale.

Europe already has more than 120 unicorns – startups valued over $1 billion. And they are spread all over Europe. No later than last week, I met with the teams of one of them, created in Romania.

We are very serious about this. It brings us back to the need for more boldness. ?We need to bear in mind the bigger picture and be more realistic about our global partners. European innovators, entrepreneurs, start-ups, scale-ups, and SMEs, are all part of this bigger picture. Their work and creativity is setting Europe on a path to succeed globally and, therefore, stand up more firmly for its values.