BEPA – Reactions to EU’s release of its Startup & Scaleup strategy

04 June 2025

The European Commission has launched a strategy to make Europe a place where startups can start and scale.

The strategy identifies two “valleys of death” (a pre-commercialisation valley, and a scaling-up valley) and offers pathways to solving these issues.

At BEPA, we believe 5 key points will be relevant to the battery startup ecosystem :

• Stronger access to finance for deep tech

In 2026, the Scaleup Europe Fund will be launched, a significant market-based and privately managed fund integrated within the EIC, aimed at providing substantial late-stage financing to tech startups and develop the European VC and private investment ecosystem. There will also be an expansion of the European Innovation Council (EIC) with more funding, simplified rules, higher success rates, and a more risk and challenge-driven approach

• Increasing the skilled workforce

The EU Startup Strategy places strong emphasis on talent by strengthening entrepreneurial ecosystems, education, diversity, and upskilling to build a resilient talent pipeline. It highlights the role of universities in fostering innovation, calling for better incentives and recognition for researchers who commercialize research and contribute to spinoffs. Under the Blue Carpet Initiative, the Commission will also address key barriers by exploring harmonized rules for employee stock options and proposing measures to remove tax obstacles for remote, cross-border startup employees

• Better innovation to market pathways

The “Lab to Unicorn” initiative will support startups to scale by providing IP licensing and venture-building support to spin-offs from research institutions. This support is especially important for battery startups moving from lab innovations, like solid-state batteries, to commercial-scale businesses. The strategy also recognises that ecosystems thrive when closely connected to universities. In line with the European Innovation Act, the Commission will aim to make it easier for innovators to become suppliers in infrastructure and energy transition projects by boosting public and private innovation investments across Europe. Reducing barriers such as risk-averse rules or overspecification, it will introduce a fast-track procedure for public procurement of R&D services, and encourage innovation-focused sourcing strategies for private buyers

• IP valuation and infrastructure access

The Commission will develop a Charter of Access for Industrial Users to Research and Technology Infrastructures, including for startups and scaleups, and, where necessary, simplify and harmonise diverging access and contractual conditions. This helps battery startups secure funding based on patents and gain access to testing facilities essential for prototyping and scaling battery cells or packs

• Addressing regulatory hurdles

Multiple initiatives will aim to standardize legal and administrative procedures across the EU, reducing the bureaucratic burden of operating in multiple countries—a major benefit for battery scaleups needing pan-European deployment (e.g. gigafactories, supply chain integration). Notably, the 28th Regime will simplify applicable rules and reduce the cost of failure, by addressing specific aspects within relevant areas of law, including insolvency, labour and tax law. It will explore the possibility of enabling companies to establish in Europe more rapidly, ideally within 48 hours. We can also expect some sector specific regulatory sandboxes, one of which is planned to be the New Advanced Materials Act

We also see 3 limits of the strategy, which will need tackling :

• Still fragmented capital market and limited access to venture capital

EU startups, especially those in capital-intensive sectors like batteries, face limited access to late-stage venture capital. The fragmented investment landscape often drives them to seek better funding opportunities in the US or Asia, hampering their ability to scale within Europe

• Planned common EU startup and scaleup definition

The lack of a common startup definition until 2026 will delay targeted support and hinder consistent implementation of the strategy across the EU. Moreover, it is currently difficult to predict if there will be resistance from certain Member States to establish a common European definition, especially from those who already have such a definition locally.

• Slow regulatory adaptation

The pace of regulatory reform (e.g. for environmental approval, transport of lithium-ion materials) is uncertain. Battery tech often faces slow go-to-market due to stringent safety/environmental checks that may still not be harmonized EU-wide.

All in all, we congratulate the EU Commission for an ambitious strategy, and we look forward to supporting the EU Commission in ensuring a strong and swift implementation of this strategy … because battery startups are key and need help!