Europe is currently home to over 35,000 early-stage startups and approximately 3,400 technology companies in the growth phase. While the ecosystem is maturing—with more experienced founders and improved access to early-stage funding—a significant funding gap of $375 billion for growth capital persists. This makes European startups 50% less likely to secure funding compared to their U.S. counterparts.
To address this disparity, the European Commission has launched the EU Startup and Scaleup Strategy, aimed at supporting high-tech enterprises across the continent. The strategy is built on several key pillars: regulatory flexibility (e.g., regulatory sandboxes), enhanced access to finance (through programs like InvestEU and the EIC Fund), digitalization and simplification of processes, talent support, and cross-border integration via unified EU platforms. The overarching vision is to create a new generation of European “centaurs” and “unicorns” that can compete globally.
Greece – Measurable Progress with Over 950 Registered Startups
In Greece, progress has been notable, particularly through public initiatives such as Elevate Greece and EquiFund. The number of startups has increased, with several achieving international presence and attracting substantial investment. According to Elevate Greece, the country now boasts more than 950 officially registered startups. Important funding mechanisms like HDBI (Hellenic Development Bank of Investments) and EquiFund have played a key role in providing vital capital.
Although Elevate Greece still faces limitations, it holds potential as a foundation for long-term innovation policy. Nevertheless, fundamental weaknesses persist. Greek entrepreneurs continue to struggle in critical areas such as access to later-stage capital, regulatory stability, and international networking. The lack of available venture capital funds for scaleups, coupled with bureaucratic inefficiencies and regulatory uncertainty, remain major obstacles. Additionally, the prevailing institutional framework often discourages risk-taking, and a broader cultural acceptance of failure—as an integral part of innovation—is still missing. This, as noted by Vasilis Siemos, Advisor on Entrepreneurship and Innovation and Head of the Business Accelerator at the “Archimedes” Unit of the National and Kapodistrian University of Athens, is essential for the evolution of entrepreneurial ventures.
Significant Potential Despite Persistent Barriers
Thanks to its geostrategic location, strong academic institutions, and growing community of digital nomads, Greece has the potential to emerge as a regional innovation hub for Southeastern Europe. Supportive policies fostering collaboration with universities, the development of frameworks for experimental technologies, and the emphasis on research centers create favorable conditions for a dynamic innovation ecosystem.
Strengthening both the Greek and broader European startup ecosystems is not merely an economic priority—it is a strategic imperative. This transformation is directly linked to the EU’s geopolitical positioning and competitiveness in the global arena. As Siemos stresses, “If we do not bridge the funding gap with the U.S., innovation will continue to migrate elsewhere, and Europe will remain a bystander to global technological leadership.”
