European Commission unveils five actions to boost angel investment and startup funding

European Commission has announced five new actions to boost angel investment as part of its EU Startup and Scaleup Strategy, a move expected to enhance early-stage funding opportunities for startups across Europe.

The measures, revealed this week, are designed to improve access to early-stage investment, strengthen the networks of angel investors, and facilitate cross-border investments. According to the Commission, these steps address persistent fragmentation in the European investment landscape, which has often limited startups' ability to secure vital funding.

EBAN, the European Business Angels Network, welcomed the new proposals and specifically called for a European co-investment scheme to further unify and strengthen the ecosystem. EBAN emphasized that a coordinated approach involving both public and private investors is crucial for closing the early-stage funding gap and ensuring startups can scale internationally.

While the Commission’s plan is expected to improve the overall investment climate, some risks remain. Without a comprehensive European co-investment scheme, fragmentation in investment opportunities could persist, potentially slowing the pace of innovation and growth among startups in certain member states.

For startups, the measures present an opportunity to access a broader pool of capital and connect with experienced investors across borders. The initiative also aims to reinforce Europe’s post-pandemic economic recovery by supporting entrepreneurial growth and job creation.

The new actions form part of the EU's ongoing efforts to make Europe a more attractive environment for innovation and investment. As the measures are implemented, stakeholders will be watching how effectively they bridge investment gaps and whether further steps, such as a pan-European co-investment program, will follow.