The European startup ecosystem is at a turning point. European Commission President Ursula von der Leyen recently announced plans for a “28th regime” for startups — an initiative to create a unified legal framework that allows them to scale seamlessly across Europe without being hindered by national regulatory differences. Alongside this, the EU Startup and Scale-up Strategy and planned public procurement reforms represent a strong commitment to fostering innovation-driven growth.

At EIT Urban Mobility, we are already playing a key role in making this vision a reality. As Europe’s most active investor in mobility startups, we go beyond funding, offering tailored support, market access, and regulatory guidance to help startups grow. But creating the right conditions for innovation requires more than individual support; it demands systemic change.

That’s why we are also actively shaping the policies that will define the future of European startups. Through our contributions to key EU policies on public procurement and startup growth, we are advocating for a regulatory framework that reduces barriers, simplifies access to public contracts, and fosters an environment where innovation can thrive. By combining investment, strategic support, and policy engagement, we are helping to build a stronger, more competitive European startup ecosystem.

The Commission in action: consultations on Public Procurement and Startup & Scale-up Strategy 

Achieving this enhanced European startup ecosystem requires more than regulatory clarity. It demands investment, strategic support, and access to markets. Moreover, despite accounting for 14% of the EU’s GDP, public procurement remains largely inaccessible to startups. Reforming procurement rules can unlock one of the most powerful levers the EU has to accelerate innovation and economic growth.  

To support this shift, EIT Urban Mobility recently contributed to two key European Commission consultations on public procurement and startup growth:

• The implementation of an EU Startup and Scale-Up Strategy, advocating for better access to finance, regulatory harmonisation, and improved market access to enable European startups to compete on a global scale. Read our position here.
• The evaluation of the EU Public Procurement Directives, emphasising the need for simplified procedures, greater SME participation, and innovation-driven procurement policies. Public procurement remains one of the most powerful yet underutilised tools to support startups in scaling their solutions. Read our position here.

Beyond grants: The EIT model as Europe’s innovation engine 

Too often, startups have struggled to transition from research projects to commercially viable businesses. This is why the EIT model should be fully integrated into the EU’s Startup and Scale-up Strategy and the next Framework Programme for Research and Innovation (FP10). Unlike the European Innovation Council (EIC), which primarily offers grants and equity, EIT’s Knowledge and Innovation Communities (KICs) – including EIT Urban Mobility – focus on creating an ecosystem that provides startups with strategic support in finance, skills, market access, and regulatory navigation. 

This approach is already delivering results. EIT Urban Mobility has supported over 460 startups, investing more than €17 million in 132 ventures, even as venture capital funding for mobility startups declined by 30% in 2024. The secret lies in fostering long-term resilience rather than short-term grants. By linking startups with corporates, cities, and other public entities, EIT ensures that innovative solutions reach the market faster. Through real-world testbeds and living labs, entrepreneurs can refine and scale their products and services with direct user feedback. And by helping startups navigate the EU’s complex regulatory landscape, it removes one of the biggest barriers to growth. 

Public procurement: A missed opportunity for European startups (so far) 

One of the biggest barriers for mobility startups is access to public procurement opportunities. Despite representing a €2.4 trillion market in the EU, procurement processes often favour large, established players due to rigid eligibility requirements, complex documentation, and risk-averse evaluation criteria. As a result, many promising European startups either fail to scale or move to other more favourable environments, like the US.  

In its consultation response, EIT Urban Mobility highlighted key solutions to unlock procurement for startups. The EU should simplify tendering processes, lower administrative barriers, and integrate innovation-driven criteria into public contracts. Cities, which often drive demand for new mobility solutions, must have more flexibility to work with startups, whether through pre-commercial procurement, innovation partnerships, or outcome-based tendering. 

Now it is time to act 

With the Startup and Scale-up Strategy and the public procurement reform under review, the EU has the opportunity to build a truly unified innovation market. To ensure startups can scale, compete and drive impactful change across Europe, EIT Urban Mobility urges institutions to: 

1. Fully integrate the EIT model into FP10 to provide startups with sustained, strategic support beyond grants. 
2. Unlock the power of public procurement by reducing administrative barriers and prioritising innovation in tendering processes. 
3. Ensure regulatory harmonisation across the EU to make it easier for startups to scale beyond national borders.

By implementing these recommendations, the EU can unlock the full potential of its startup ecosystem, creating a future where mobility innovators thrive, cities adopt cutting-edge solutions, and Europe remains a global leader in sustainable transport.