This week on EU-Startups Podcast, Marcin Lewandowski hosts Yoram Wijngaarde, Founder & CEO of Dealroom, to talk about "Startups backed by the EU's Framework Programmes" report. A first-of-its-kind report compiled by Dealroom, with Dealflow.eu and EU-Startups, reveals that a €12 billion investment made up of EU grants and Framework Programmes such as Horizon, has helped generate €520 billion in total company value. According to the findings, European Union Framework Programmes have provided €12 billion in direct funding to startups. These startups secured an additional €70 billion in venture capital funding, with the supported companies now collectively valued at €520 billion. This represents 10% of all venture-backed startups in Europe. Over the past 40 years, EU research and innovation initiatives have allocated significant funding through programmes including the Seventh Framework Programme, Horizon 2020, and Horizon Europe. Of the total €225 billion deployed through these three programmes, approximately €12 billion (5%) went directly to startups. Notable success stories include BioNTech, which developed a Covid vaccine, and ARM, a leader in mobile chip technology. While ARM benefited from an earlier 1990s Framework Programme and is not included in the €400 billion valuation of current startups, including it brings the total value creation to €520 billion. As much as 74% of EU-backed startups manufacture physical products, mostly in frontier tech areas, compared with 25% in the total European ecosystem. EU support also plays a key role in sectors including SpaceTech, Semiconductors, ClimateTech, and Robotics. These EU-backed startups also have a significantly higher graduation rate between VC rounds, compared with European VC-backed startups that did not receive any EU funding. These findings show the important role that EU programmes play, often at the early stage, in de-risking the growth journeys of European tech champions. Key observations from the report include: 1.Only 5% of EU innovation funding is allocated to startups, despite their critical role in Europe’s future and global innovation. 2.Over the last three EU framework programmes, 13,600 startups have received funding, totaling €12 billion from the EU and €70 billion from private VC, already worth €520 billion. 3.EU-backed startups, particularly in DeepTech sectors like AI, Robotics, and ClimateTech, have higher graduation rates and show promising outcomes, though most remain in early stages requiring further funding to scale. 4.The complexity and number of current EU funding programmes create challenges for startups to access the support available. 5.EU funding has provided a successful launchpad for startup at early stages, and can be considered fruitful hunting ground for private investors to back in further rounds Recommendations to the European Commission include: 1.Expand Startup Investment - Increase the funding allocation to startups in Horizon Europe’s successor programme (FP10) to capitalise on their measurable economic and societal impact. 2.Streamline Support Mechanisms - Consolidate fragmented programmes into a single pathway for grants, equity, and mentorship drawing on the current work of Europe Startups Nation Alliance (ESNA) and the European Innovation Council (EIC). 3.Promote Visibility - Scale up EU startup summits and pitch days to connect EU-backed startups with private investors and corporates. 4.Leverage Digital Platforms - Scaleup existing tools such as Dealfllow.eu and Innovation Radar with real time startup insights and matchmaking to empower stakeholders. Full report here: https://dealroom.co/reports/startups-backed-by-the-eus-framework-programmes This podcast episode is brought to you by Scytale - making compliance super easy for startups, helping them get compliant and stay compliant with frameworks like SOC 2, ISO 27001, GDPR, NIS 2, HIPAA, PCI-DSS and more, without breaking a sweat. Learn more at https://scytale.ai/eus
