Europe's startup and scaleup ecosystem has been growing steadily, according to the first-ever European Startup and Scaleup Scoreboard (ESSS) published today by the European Commission.
The scoreboard reveals a clear trend: pro-startup policies drive real results. Since 2020, the baseline year for the Scoreboard, 20 out of 27 EU Member States have improved their performance, proving that targeted support for founders fuels innovation, job creation, and economic growth.
Where policy leads, founders follow
The Scoreboard highlights a direct link between innovation-friendly regulations, access to talent, and venture capital – and the success of startups and scaleups. Front-runner countries – Estonia, Sweden, Finland, the Netherlands and Denmark – perform well above the EU average (from 40 to 60 percentage points) in 36 measuring indicators, showing how bold policies translate into thriving ecosystems:
- Estonia leads in digital infrastructure and early-stage funding, with 615 venture capital-backed companies per million inhabitants – the highest in the EU.
- Sweden excels in talent and later-stage financing, producing 409 unicorns per million inhabitants – more than any other EU nation.
- Finland combines strong R&D investment with high patenting activity, proving that innovation and commercialisation go hand-in-hand.
Policy gaps hold back innovation
While the ESSS 2026 celebrates progress, it also reveals untapped potential in rising countries (Greece, Latvia, Bulgaria, Slovakia, Romania), which score 30 percentage points below the EU average in the same 36 measuring indicators. Three key challenges stand out:
- Weak venture capital access: Later-stage funding is scarce, forcing high-growth companies to look abroad for capital.
- Scaling bottlenecks: Fragmented regulations and slow administrative processes delay expansion, costing time and momentum
- Brain drain: Talent leaves for more dynamic ecosystems, draining local innovation.
From results to action
The Scoreboard's results and analysis will help shape a series of strategic actions aimed at further strengthening Europe's startup and scaleup ecosystems - particularly the upcoming European Innovation Act.
The Commission has put forward a number of initiatives to attract and retain talent and respond to the needs of innovative companies. This includes EU Inc ., a proposal for a new single set of corporate rules for companies to operate across the EU; the European Business Wallet to simplify cross border business operations; and the EU Visa Strategy , with measures to support the EU's global competitiveness, attract and retain talent, and make legitimate travel easier, faster and more predictable for tourists and business travellers.
Background
The European Startup and Scaleup Scoreboard is one key deliverable of the EU Startup and Scaleup Strategy, 'Choose Europe to Start and Scale' , which was published exactly a year ago to make Europe the best place to launch and grow global technology-driven companies.
The Strategy sets out 26 concrete measures that are designed to accelerate the journey from innovation to commercial success and empower entrepreneurs across the EU. To track this progress, the new Scoreboard evaluates national ecosystems across six key pillars:
- Innovation-friendly regulation
- Better financing for startups and scaleups
- Fast market uptake and expansion
- Support for the best talent in Europe
- Access to infrastructure, network and services
- Impact
To ensure a rigorous assessment, the scoreboard tracked 36 distinct performance indicators from 2020 through 2025. The analysis combines official public data from Eurostat and the Joint Research Centre with private market tech insights from Dealroom and the European Startup Nations Alliance. To reflect the most up-to-date definitions and data, the underlying datasets were finalised in early 2026.
Based on their final index scores, EU countries are ranked into four distinct performance tiers:
- Front-runners: performing above 125% of the EU average
- High-performing: 100% to 125% of the EU average
- Catching-up: 70% to 100% of the EU average
- Rising: Below 70% of the EU average
