EC’s new start-up and scale-up strategy includes proposals for EU-wide IP-finance initiative and IP valuation framework
11 Jun 2025
Author
Martin Croft
PR & Communications Manager
The European Commission (EC) recently (28/05/25) published its new strategy for encouraging start-ups and scale-ups within the European Union (EU), titled The EU Startup and Scaleup Strategy: Choose Europe to start and scale.
From the point of view of those interested in IP-backed finance – leveraging IP value to raise funds for SMEs and other organisations, particularly through the use of IP as collateral for bank lending – the document includes some key proposals, notably one for a framework for IP valuation for IP-backed financing, to be developed in cooperation with the European Union Intellectual Property Office. The EC document also includes plans to “expand the evidence base to develop concrete IP finance instruments.” Both of these objectives are planned for the second quarter of 2027, according to the EC.
The new strategy aims to remove the longstanding barriers that have blocked many startups from scaling successfully within the EU. It is in line with the wider Choose Europe initiative introduced by President Ursula von der Leyen, which kicked off with a focus on strengthening Europe's competitiveness by making it more appealing for science and technical students to pursue education and careers in the EU.
According to an EC press release, the new start-up and scale-up strategy will support companies “throughout their lifecycle, from starting up to scaling up to maturing and succeeding here in the EU… Startups and scaleups are essential to Europe's future, driving innovation and sustainable growth, creating high-quality jobs, attracting investment and reducing strategic dependencies. Yet, despite strong foundations, too many still struggle to take ideas from lab to market or grow at scale within the EU.”
On the issue of IP-backed financing, the strategy says: “Many startups struggle to use their intangible assets, such as intellectual property (IP), as collateral or security to raise funding, due to i) restrictive banking practices, ii) an underdeveloped IP valuation ecosystem, iii) lack of trust in IP valuation methods, iv) low awareness of internationally recognised IP valuation methods and, more generally, v) limited market recognition of IP-backed financing. There is a lack of incentives in the EU to encourage banks and institutional investors to engage in IP-backed financing.”
Accompanying the strategy document is a Commission Staff Working Document, which goes into more depth on some of the issues. This says:
“Various barriers hamper startups and scaleups to obtain IPR [Intellectual Property Rights] backed finance. As a result, startups and scaleups across the EU face difficulties to use their IPR as a collateral to secure more financing from financial investors. IPR is generally very difficult to value and such value can oscillate, complicating its use by lenders. Unlike in the other parts of the world, there is a lack of public financial guarantees to banks and other financial institutions engaging in lending to startups that have no ‘hard collateral’ to provide, because their assets are mostly intangible.”
Additionally, “There are no clear incentives or training for banks and other institutional investors to engage in IPR backed financing in line with sound financial management principles. There is no trustworthy widely accepted approach for IPR valuation nor model templates on how to apply it. IPR valuation can be costly. Small companies make only limited use of reporting IPR in annual accounting / financial reports.”
Overall, the Strategy identifies the key needs of startups and scaleups and includes proposed actions across five main areas:
Fostering innovation-friendly environment: As outlined in the Single Market Strategy, startups and scaleups need less fragmentation, fewer administrative burdens, as well as rules that are simpler and more supportive across the Single Market. The Commission wants to simplify rules in areas like insolvency, labour and tax law. The proposed European Business Wallet will enable businesses to have seamless digital interactions with public administrations across the EU through a unified digital identity for all economic operators. The planned European Innovation Act, announced in December 2024, should also further support innovation by promoting regulatory sandboxes.
Driving better financing: Startups and scaleups need better funding, a larger and more integrated EU venture capital (VC) market and greater involvement of European institutional investors. The Savings and Investments Union initiative should unlock more financing and investment opportunities in the EU, and will be complemented with an expansion and simplification of the European Innovation Council and the deployment of a Scaleup Europe Fund to help bridge the financing gap of deep tech scale-up companies. A voluntary European Innovation Investment Pact to mobilise large institutional investors to invest in EU funds, venture capital funds and unlisted scaleups is also on the cards.
Supporting market uptake and expansion: Startups and scaleups need a quicker journey from lab to market. The Strategy introduces a Lab to Unicorn initiative, which includes the European Startup and Scaleup Hubs to help connect university ecosystems across the EU. This includes a blueprint for licensing, royalty and revenue-sharing and equity participation for academic institutions and their inventors when commercialising intellectual property (IP) and creating spinoffs, along with guidance on State aid IP-related rules.
Attracting and retaining top talent: To keep and attract top talent, startups and scaleups need better access to highly skilled individuals. The Strategy introduces the Blue Carpet initiative, notably focusing on entrepreneurial education, tax-related aspects of employee stock options and cross-border employment. The Commission will also promote the Blue Card Directive and encourage Member States to put in place a fast-track schemes for non-EU founders.
Facilitating access to infrastructure, networks and service: Startups and scaleups need a shorter time-to-market and quicker commercialisation. The Strategy proposes to simplify and harmonise diverging access and contractual conditions for startups and scaleups to technology and research infrastructures through a Charter of Access for industrial users.
The European Commission (EC) recently (28/05/25) published its new strategy for encouraging start-ups and scale-ups within the European Union (EU), titled The EU Startup and Scaleup Strategy: Choose Europe to start and scale.
From the point of view of those interested in IP-backed finance – leveraging IP value to raise funds for SMEs and other organisations, particularly through the use of IP as collateral for bank lending – the document includes some key proposals, notably one for a framework for IP valuation for IP-backed financing, to be developed in cooperation with the European Union Intellectual Property Office. The EC document also includes plans to “expand the evidence base to develop concrete IP finance instruments.” Both of these objectives are planned for the second quarter of 2027, according to the EC.
The new strategy aims to remove the longstanding barriers that have blocked many startups from scaling successfully within the EU. It is in line with the wider Choose Europe initiative introduced by President Ursula von der Leyen, which kicked off with a focus on strengthening Europe's competitiveness by making it more appealing for science and technical students to pursue education and careers in the EU.
According to an EC press release, the new start-up and scale-up strategy will support companies “throughout their lifecycle, from starting up to scaling up to maturing and succeeding here in the EU… Startups and scaleups are essential to Europe's future, driving innovation and sustainable growth, creating high-quality jobs, attracting investment and reducing strategic dependencies. Yet, despite strong foundations, too many still struggle to take ideas from lab to market or grow at scale within the EU.”
On the issue of IP-backed financing, the strategy says: “Many startups struggle to use their intangible assets, such as intellectual property (IP), as collateral or security to raise funding, due to i) restrictive banking practices, ii) an underdeveloped IP valuation ecosystem, iii) lack of trust in IP valuation methods, iv) low awareness of internationally recognised IP valuation methods and, more generally, v) limited market recognition of IP-backed financing. There is a lack of incentives in the EU to encourage banks and institutional investors to engage in IP-backed financing.”
Accompanying the strategy document is a Commission Staff Working Document, which goes into more depth on some of the issues. This says:
“Various barriers hamper startups and scaleups to obtain IPR [Intellectual Property Rights] backed finance. As a result, startups and scaleups across the EU face difficulties to use their IPR as a collateral to secure more financing from financial investors. IPR is generally very difficult to value and such value can oscillate, complicating its use by lenders. Unlike in the other parts of the world, there is a lack of public financial guarantees to banks and other financial institutions engaging in lending to startups that have no ‘hard collateral’ to provide, because their assets are mostly intangible.”
Additionally, “There are no clear incentives or training for banks and other institutional investors to engage in IPR backed financing in line with sound financial management principles. There is no trustworthy widely accepted approach for IPR valuation nor model templates on how to apply it. IPR valuation can be costly. Small companies make only limited use of reporting IPR in annual accounting / financial reports.”
Overall, the Strategy identifies the key needs of startups and scaleups and includes proposed actions across five main areas:
Fostering innovation-friendly environment: As outlined in the Single Market Strategy, startups and scaleups need less fragmentation, fewer administrative burdens, as well as rules that are simpler and more supportive across the Single Market. The Commission wants to simplify rules in areas like insolvency, labour and tax law. The proposed European Business Wallet will enable businesses to have seamless digital interactions with public administrations across the EU through a unified digital identity for all economic operators. The planned European Innovation Act, announced in December 2024, should also further support innovation by promoting regulatory sandboxes.
Driving better financing: Startups and scaleups need better funding, a larger and more integrated EU venture capital (VC) market and greater involvement of European institutional investors. The Savings and Investments Union initiative should unlock more financing and investment opportunities in the EU, and will be complemented with an expansion and simplification of the European Innovation Council and the deployment of a Scaleup Europe Fund to help bridge the financing gap of deep tech scale-up companies. A voluntary European Innovation Investment Pact to mobilise large institutional investors to invest in EU funds, venture capital funds and unlisted scaleups is also on the cards.
Supporting market uptake and expansion: Startups and scaleups need a quicker journey from lab to market. The Strategy introduces a Lab to Unicorn initiative, which includes the European Startup and Scaleup Hubs to help connect university ecosystems across the EU. This includes a blueprint for licensing, royalty and revenue-sharing and equity participation for academic institutions and their inventors when commercialising intellectual property (IP) and creating spinoffs, along with guidance on State aid IP-related rules.
Attracting and retaining top talent: To keep and attract top talent, startups and scaleups need better access to highly skilled individuals. The Strategy introduces the Blue Carpet initiative, notably focusing on entrepreneurial education, tax-related aspects of employee stock options and cross-border employment. The Commission will also promote the Blue Card Directive and encourage Member States to put in place a fast-track schemes for non-EU founders.
Facilitating access to infrastructure, networks and service: Startups and scaleups need a shorter time-to-market and quicker commercialisation. The Strategy proposes to simplify and harmonise diverging access and contractual conditions for startups and scaleups to technology and research infrastructures through a Charter of Access for industrial users.
The European Commission (EC) recently (28/05/25) published its new strategy for encouraging start-ups and scale-ups within the European Union (EU), titled The EU Startup and Scaleup Strategy: Choose Europe to start and scale.
From the point of view of those interested in IP-backed finance – leveraging IP value to raise funds for SMEs and other organisations, particularly through the use of IP as collateral for bank lending – the document includes some key proposals, notably one for a framework for IP valuation for IP-backed financing, to be developed in cooperation with the European Union Intellectual Property Office. The EC document also includes plans to “expand the evidence base to develop concrete IP finance instruments.” Both of these objectives are planned for the second quarter of 2027, according to the EC.
The new strategy aims to remove the longstanding barriers that have blocked many startups from scaling successfully within the EU. It is in line with the wider Choose Europe initiative introduced by President Ursula von der Leyen, which kicked off with a focus on strengthening Europe's competitiveness by making it more appealing for science and technical students to pursue education and careers in the EU.
According to an EC press release, the new start-up and scale-up strategy will support companies “throughout their lifecycle, from starting up to scaling up to maturing and succeeding here in the EU… Startups and scaleups are essential to Europe's future, driving innovation and sustainable growth, creating high-quality jobs, attracting investment and reducing strategic dependencies. Yet, despite strong foundations, too many still struggle to take ideas from lab to market or grow at scale within the EU.”
On the issue of IP-backed financing, the strategy says: “Many startups struggle to use their intangible assets, such as intellectual property (IP), as collateral or security to raise funding, due to i) restrictive banking practices, ii) an underdeveloped IP valuation ecosystem, iii) lack of trust in IP valuation methods, iv) low awareness of internationally recognised IP valuation methods and, more generally, v) limited market recognition of IP-backed financing. There is a lack of incentives in the EU to encourage banks and institutional investors to engage in IP-backed financing.”
Accompanying the strategy document is a Commission Staff Working Document, which goes into more depth on some of the issues. This says:
“Various barriers hamper startups and scaleups to obtain IPR [Intellectual Property Rights] backed finance. As a result, startups and scaleups across the EU face difficulties to use their IPR as a collateral to secure more financing from financial investors. IPR is generally very difficult to value and such value can oscillate, complicating its use by lenders. Unlike in the other parts of the world, there is a lack of public financial guarantees to banks and other financial institutions engaging in lending to startups that have no ‘hard collateral’ to provide, because their assets are mostly intangible.”
Additionally, “There are no clear incentives or training for banks and other institutional investors to engage in IPR backed financing in line with sound financial management principles. There is no trustworthy widely accepted approach for IPR valuation nor model templates on how to apply it. IPR valuation can be costly. Small companies make only limited use of reporting IPR in annual accounting / financial reports.”
Overall, the Strategy identifies the key needs of startups and scaleups and includes proposed actions across five main areas:
Fostering innovation-friendly environment: As outlined in the Single Market Strategy, startups and scaleups need less fragmentation, fewer administrative burdens, as well as rules that are simpler and more supportive across the Single Market. The Commission wants to simplify rules in areas like insolvency, labour and tax law. The proposed European Business Wallet will enable businesses to have seamless digital interactions with public administrations across the EU through a unified digital identity for all economic operators. The planned European Innovation Act, announced in December 2024, should also further support innovation by promoting regulatory sandboxes.
Driving better financing: Startups and scaleups need better funding, a larger and more integrated EU venture capital (VC) market and greater involvement of European institutional investors. The Savings and Investments Union initiative should unlock more financing and investment opportunities in the EU, and will be complemented with an expansion and simplification of the European Innovation Council and the deployment of a Scaleup Europe Fund to help bridge the financing gap of deep tech scale-up companies. A voluntary European Innovation Investment Pact to mobilise large institutional investors to invest in EU funds, venture capital funds and unlisted scaleups is also on the cards.
Supporting market uptake and expansion: Startups and scaleups need a quicker journey from lab to market. The Strategy introduces a Lab to Unicorn initiative, which includes the European Startup and Scaleup Hubs to help connect university ecosystems across the EU. This includes a blueprint for licensing, royalty and revenue-sharing and equity participation for academic institutions and their inventors when commercialising intellectual property (IP) and creating spinoffs, along with guidance on State aid IP-related rules.
Attracting and retaining top talent: To keep and attract top talent, startups and scaleups need better access to highly skilled individuals. The Strategy introduces the Blue Carpet initiative, notably focusing on entrepreneurial education, tax-related aspects of employee stock options and cross-border employment. The Commission will also promote the Blue Card Directive and encourage Member States to put in place a fast-track schemes for non-EU founders.
Facilitating access to infrastructure, networks and service: Startups and scaleups need a shorter time-to-market and quicker commercialisation. The Strategy proposes to simplify and harmonise diverging access and contractual conditions for startups and scaleups to technology and research infrastructures through a Charter of Access for industrial users.
The European Commission (EC) recently (28/05/25) published its new strategy for encouraging start-ups and scale-ups within the European Union (EU), titled The EU Startup and Scaleup Strategy: Choose Europe to start and scale.
From the point of view of those interested in IP-backed finance – leveraging IP value to raise funds for SMEs and other organisations, particularly through the use of IP as collateral for bank lending – the document includes some key proposals, notably one for a framework for IP valuation for IP-backed financing, to be developed in cooperation with the European Union Intellectual Property Office. The EC document also includes plans to “expand the evidence base to develop concrete IP finance instruments.” Both of these objectives are planned for the second quarter of 2027, according to the EC.
The new strategy aims to remove the longstanding barriers that have blocked many startups from scaling successfully within the EU. It is in line with the wider Choose Europe initiative introduced by President Ursula von der Leyen, which kicked off with a focus on strengthening Europe's competitiveness by making it more appealing for science and technical students to pursue education and careers in the EU.
According to an EC press release, the new start-up and scale-up strategy will support companies “throughout their lifecycle, from starting up to scaling up to maturing and succeeding here in the EU… Startups and scaleups are essential to Europe's future, driving innovation and sustainable growth, creating high-quality jobs, attracting investment and reducing strategic dependencies. Yet, despite strong foundations, too many still struggle to take ideas from lab to market or grow at scale within the EU.”
On the issue of IP-backed financing, the strategy says: “Many startups struggle to use their intangible assets, such as intellectual property (IP), as collateral or security to raise funding, due to i) restrictive banking practices, ii) an underdeveloped IP valuation ecosystem, iii) lack of trust in IP valuation methods, iv) low awareness of internationally recognised IP valuation methods and, more generally, v) limited market recognition of IP-backed financing. There is a lack of incentives in the EU to encourage banks and institutional investors to engage in IP-backed financing.”
Accompanying the strategy document is a Commission Staff Working Document, which goes into more depth on some of the issues. This says:
“Various barriers hamper startups and scaleups to obtain IPR [Intellectual Property Rights] backed finance. As a result, startups and scaleups across the EU face difficulties to use their IPR as a collateral to secure more financing from financial investors. IPR is generally very difficult to value and such value can oscillate, complicating its use by lenders. Unlike in the other parts of the world, there is a lack of public financial guarantees to banks and other financial institutions engaging in lending to startups that have no ‘hard collateral’ to provide, because their assets are mostly intangible.”
Additionally, “There are no clear incentives or training for banks and other institutional investors to engage in IPR backed financing in line with sound financial management principles. There is no trustworthy widely accepted approach for IPR valuation nor model templates on how to apply it. IPR valuation can be costly. Small companies make only limited use of reporting IPR in annual accounting / financial reports.”
Overall, the Strategy identifies the key needs of startups and scaleups and includes proposed actions across five main areas:
Fostering innovation-friendly environment: As outlined in the Single Market Strategy, startups and scaleups need less fragmentation, fewer administrative burdens, as well as rules that are simpler and more supportive across the Single Market. The Commission wants to simplify rules in areas like insolvency, labour and tax law. The proposed European Business Wallet will enable businesses to have seamless digital interactions with public administrations across the EU through a unified digital identity for all economic operators. The planned European Innovation Act, announced in December 2024, should also further support innovation by promoting regulatory sandboxes.
Driving better financing: Startups and scaleups need better funding, a larger and more integrated EU venture capital (VC) market and greater involvement of European institutional investors. The Savings and Investments Union initiative should unlock more financing and investment opportunities in the EU, and will be complemented with an expansion and simplification of the European Innovation Council and the deployment of a Scaleup Europe Fund to help bridge the financing gap of deep tech scale-up companies. A voluntary European Innovation Investment Pact to mobilise large institutional investors to invest in EU funds, venture capital funds and unlisted scaleups is also on the cards.
Supporting market uptake and expansion: Startups and scaleups need a quicker journey from lab to market. The Strategy introduces a Lab to Unicorn initiative, which includes the European Startup and Scaleup Hubs to help connect university ecosystems across the EU. This includes a blueprint for licensing, royalty and revenue-sharing and equity participation for academic institutions and their inventors when commercialising intellectual property (IP) and creating spinoffs, along with guidance on State aid IP-related rules.
Attracting and retaining top talent: To keep and attract top talent, startups and scaleups need better access to highly skilled individuals. The Strategy introduces the Blue Carpet initiative, notably focusing on entrepreneurial education, tax-related aspects of employee stock options and cross-border employment. The Commission will also promote the Blue Card Directive and encourage Member States to put in place a fast-track schemes for non-EU founders.
Facilitating access to infrastructure, networks and service: Startups and scaleups need a shorter time-to-market and quicker commercialisation. The Strategy proposes to simplify and harmonise diverging access and contractual conditions for startups and scaleups to technology and research infrastructures through a Charter of Access for industrial users.
Read Recent Articles
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.