Business angels are pivotal in the innovation ecosystem, providing early-stage funding, mentorship, and strategic guidance to startups. Their involvement bridges the gap between the inception of innovative ideas and their successful commercialisation. Business angels contribute not only financially but also through their expertise and networks, which are invaluable for startups striving to scale.
On April 25th, ArchAngels Luigi Amati, Claire Munck, and Alain Pujol met with Ekaterina Zaharieva, EU Commissioner for Startups, Research and Innovation to discuss the vital role business angels play in the EU innovation ecosystem. The meeting underscored the importance of business angels in supporting innovation and highlighted their complementarity with key initiatives such as the European Innovation Council (EIC) and the Horizon Results Platform. This discussion took place within the broader context of the European Commission’s development of the comprehensive Startup and Scaleup Strategy , aimed at creating an environment conducive to the growth and scaling of European startups.
The EU Startup and Scaleup Strategy
The European Commission’s Startup and Scaleup Strategy, to be adopted in 2025, aims to lead to a more innovation-friendly environment and so accelerate the growth of European startups. It addresses challenges in accessing capital, markets, services, infrastructure, and talent. Part of the Competitiveness Compass, the strategy seeks to close the innovation gap with global competitors and includes legislative proposals like the European Innovation Act and the “28th regime.” Collaboration between the Commission and business angels is crucial for its success.
Promoting gender diversity and regional development
The conversation also touched upon the importance of gender diversity and the development of angel communities in widening countries. Promoting gender diversity within the business angel community can lead to more inclusive and innovative ecosystems. Additionally, supporting angel communities in widening countries helps to spread the benefits of innovation and entrepreneurship across the EU, leading to greater regional development and economic growth.
Bridging the innovation gap in widening countries
The ESIL initiative aims to support early-stage investing across Europe by providing resources, training, and networks for both new and experienced business angels. By focusing on widening countries, ESIL seeks to level the playing field, ensuring that innovation and entrepreneurship are not confined to more developed regions but spread across the continent.
One of the primary goals of ESIL is to bridge the innovation gap between widening countries and their more developed counterparts. This is achieved by:
- Training and mentorship: ESIL provides training programmes for new business angels in widening countries, enhancing their ability to support startups.
- Cross-border investments: ESIL support a pan-European network to encourage cross-border investments, giving startups in widening countries access to more capital and expertise.
- Supportive ecosystems: ESIL collaborates with local stakeholders to create environments that address the specific challenges faced by startups in widening countries, including access to capital, regulatory issues, and market entry barriers.
Collaboration remains essential in advancing the EU’s innovation agenda. The meeting between the European Commissioner and the ArchAngels highlighted the indispensable role of business angels in the innovation ecosystem. By working together and leveraging initiatives like ESIL, the EU can create a more supportive environment for startups and scaleups, promoting gender diversity and bridging the innovation gap in widening countries.
For more information on the EU Startup and Scaleup Strategy and to get involved, read what the commission is doing here.