ACT | The App Association
Europe’s Digital Future: What’s the path to a true European scale-up market?
Europe’s startup ecosystem needs an ambitious overhaul. Founders from all backgrounds are developing technologies that shape the way we live and work, yet when it comes to scaling these ideas into globally competitive companies, Europe’s structural barriers get in the way.
All too often, regulation brings challenges instead of opportunities, slowing innovation and expansion to overseas markets. For startups, the policy conversation is as important as pitching or hiring.
Europe needs straightforward reforms to become a truly single market for digital businesses. The European Commission’s Startup and Scaleup Strategy lays out a focus on five priority areas:
1. Innovation-friendly regulation
2. Improved access to finance
3. Market uptake
4. Talent
5. Infrastructure
If implemented effectively, reforms across these areas could mark a turning point. But how can small companies engage in the policy conversations shaping the business environment?
This is where advocacy comes in. ACT | The App Association represents startups, scaleups, app developers and SMEs around the world, bringing their perspective to regulatory conversations and engaging directly with policymakers in Brussels, London and Washington, DC – and beyond. With ACT | The App Association, founders can focus on building their businesses, knowing a trusted ally is watching their back.
Digital sovereignty, with startups at the table
Regulators and founders are fiercely debating how to reduce dependence on foreign technologies and assert control over strategic digital infrastructure while upholding European values, but true digital sovereignty will flow from the success of European startups and scaleups competing in a global market. Digital sovereignty can nurture a strong ecosystem when designed with comprehensive input and a solid infrastructure. However, without careful design, it can lead to protectionist rules that fragment the single market and complicate scaling. Europe must focus on attracting founders by making itself the best place to build and grow an innovative business. Ensuring a bright future for Europe means bringing in and fostering more small tech and talent rather than blocking it.
Innovation in earning trust
From AI to digital health, regulators are looking to balance innovation with protections for consumers and workers. However, rules that may seem manageable or that are aimed at large enterprises can quickly overwhelm startups and erode trust for new products, so policymakers must consider the needs of startups and scaleups as they implement and enforce regulations. For example, the Digital Markets Act compromises the security tools that SMEs and consumers trust to prevent fraud and theft. Piling on more regulations won’t solve the problem. SMEs need proportional compliance requirements that fit the nature of their work.
Regulatory frameworks are static while the startup process is iterative and dynamic. Sandboxes like the ones introduced under the European Innovation Act can enable startups to test new products in a controlled environment, allowing policymakers to safeguard the public interest while giving entrepreneurs the space to experiment and refine.
Getting the regulatory model right
Startups are frequently caught in the crossfire of regulatory debates. From intellectual property (IP) to competition law, pre-emptive regulation in the name of protecting consumers ignores the substantial consumer benefits of innovations. For example, the AI Regulation restricted innovation before any harms or specific problems could be articulated. Regulators feared that inaction could let the genie out of the bottle. Unfortunately for startups, it’s European genius, not the genie, that was trapped. Now European startups and scaleups are starved for the technology, resources and partnerships that would help them get to the next level.
As another example, mergers and acquisitions (M&A) drive crucial investment and scale, but an overly restrictive approach could unintentionally block both. Startups, and especially scaleups, need a protected path to investment that includes pro-competitive M&A options. For European startups,
a barrier to exit is a barrier to entry.
We’re not saying that no regulation is the answer. Where there is an articulable harm, regulation can be valuable. For example, startups can take many paths to rapidly innovate: one is the use of voluntary standards. Unfortunately, that avenue is under assault. Startups building connected devices need the ability to license standard-essential patents (SEPs) without fearing that their innovation can be cut out from under them by unscrupulous actors.
Scaling across borders
Perhaps the most persistent structural issue for Europe’s startups is fragmentation. Incorporating a company, raising capital or hiring employees looks very different in Berlin, Lisbon or Tallinn. This patchwork of rules means founders spend valuable time and money adapting to local regulations instead of scaling.
The EU’s 28th Regime proposal for a digital, uniform incorporation process could help solve this problem: one set of rules and a truly single market. That is the level playing field Europe needs if it wants to produce global champions on the scale of the United States or China.
A shared responsibility
Policy may feel distant to many founders, but its impact is immediate and inescapable. Europe’s data privacy rules, competition framework, and digital infrastructure investments all affect whether a startup can grow, hire and compete globally. Engaging in the policy conversation is a shared responsibility for anyone who wants Europe’s innovation ecosystem to thrive.
Connecting entrepreneurs and policymakers ensures that the rules reflect the realities of startups.
If Europe wants global champions, it must remove barriers for startups and scaleups. Regulation must foster sovereignty that unites and deals with specific harms while providing flexibility that encourages innovation.
Member Stories: Innovators in Action
From ACT | The App Association
Healthtech for all
Vincent Keunen, Founder and CEO at Andaman7 (Belgium)
When I had blood cancer (LMC) and my 10-year-old son Pierre had bone cancer, I realized two important things: it’s very difficult for patients to access their health data, and it’s essential that they can contribute to research to expedite new treatments. This is what led to the creation of Andaman7, by patients for patients.
With Andaman7, we offer patients a free personal health record (PHR) app where all health data stays locally on their smartphone, never in the cloud. Patients remain in full control, and only those who consent can contribute to clinical research. To sustain our model, we provide paid services to pharma companies and contract research organizations (CROs) to support patient-mediated research for clinical trials.
Looking ahead, my vision is to finally remove all interoperability blockages to enable better care and faster research. Startups like ours are the kings of innovation, and Europe needs a healthy startup economy for the benefit of patients and society as a whole.
Guido Magrin, Founder and CEO at TeiaCare (Italy)
My grandfather spent time in a nursing home in Milan, and I realized how much caregiving could be improved through digital tools and AI. That insight became TeiaCare's mission: to improve the lives of the frail while also giving our team members the chance to apply their skills to create real social impact. We develop AI solutions to improve the quality of care in nursing homes across Italy and soon across Europe. Our product, Ancelia, already helps tens of thousands of residents and care professionals in their daily lives.
I believe healthtech should not be seen as an add-on but as a way to rethink processes from the ground up. Human minutes of assistance should be reserved for human relationships, while technology provides virtual assistance for everything else. Regulation plays a key role here by enabling this shift with clear product categories while ensuring privacy and safety.
Green digital solutions
Laetitia Carle, COO at Greenly (France)
Greenly started from a clear gap: climate action is essential, but for small and mid-sized companies it felt out of reach. Fragmented data, expensive experts and shifting requirements created barriers. Our mission is to make carbon accounting as universal, reliable and accessible as financial accounting, helping Europe accelerate toward net zero while staying competitive. We enable companies to take real climate action and lead in their industries.
Our Climate Suite streamlines carbon accounting, reporting and reduction planning and extends into life-cycle assessment and sustainable procurement support. We’re building a comprehensive platform so that any company, from startup to large manufacturer, can access high-quality tools for carbon management. Regulation is both the driver and the guardrail: it must be predictable, proportionate and supported with grants, technical assistance and shared data.
Federico Roviglioni, Founder at Bufaga (Italy)
We started Bufaga with the idea that clean air should not be a privilege but a right accessible to everyone. Cities and private operators often struggle to fund environmental improvements, so our goal is to create new revenue streams where environmental impact and digital innovation meet, proving that sustainability and profitability can scale together. We develop and deploy E-Bufaga, an air-purification device integrated with internet of things (IoT) sensors and digital displays. Our technology removes harmful pollutants such as PM10, PM2.5, NOx and VOCs while also collecting environmental data and enabling digital out-of-home advertising.
I want to see greentech evolve into an infrastructure layer seamlessly integrated into daily life. Regulation is crucial for that to happen; clear ESG reporting frameworks, standards and incentives for green infrastructure help SMEs like ours compete with larger incumbents and accelerate adoption at scale.
Startups like Bufaga bring agility and purpose-driven innovation. My moonshot is a digital economy that combines technology and sustainability, empowering communities and businesses and positioning Europe as a global leader in resilient, inclusive and impactful innovation.
AI with integrity
Jason Culloty, Founder and CEO at Skillsvista (Ireland)
The idea for Skillsvista came from my frustration with how disconnected career management is. Recruitment is broken, training doesn’t match industry needs, and people are left behind. After years as a senior army officer, I decided to tackle this problem by building a tech solution that aligns learning, recruitment and workforce planning with real skills demand. At Skillsvista, we connect people with the right skills, roles and training opportunities. Our platform helps businesses plan their workforce strategically while enabling students and job seekers to upskill, find jobs and build meaningful careers. We even map academic paths from level 3 to level 9 on the national framework, so students can clearly see their options.
I see AI transforming career management in Europe. With it, we can match people to jobs and training in real time, anticipate future skills demand and ensure education providers keep course content aligned with what employers actually need. My moonshot is simple: a truly skills-first digital economy where recruitment, learning and workforce planning are seamlessly connected – and Europe leads the way.
Carlo Ferretti, founder, 3DXR (Italy)
I started 3DXR from the conviction that Europe’s cultural and creative heritage can be a driver of digital innovation, not a sector left behind. Too often, advanced technologies remain confined to industrial domains, while cultural institutions and SMEs lack access. The change we are working toward is a digital economy that treats culture as an active field of experimentation and entrepreneurship, where heritage preservation also generates new forms of value, employment, and social impact. We operate at the intersection of 3D scanning, extended reality (XR) and additive manufacturing, with a particular focus on the cultural and creative industries. Our services range from high-precision digitization of cultural heritage to immersive storytelling and prototyping through 3D printing.
AI will play a central role in our work, from automated 3D reconstruction and semantic annotation to AI-driven generative design and storytelling. Startups like 3DXR strengthen Europe’s position by staying close to communities and institutions, prototyping solutions that are context-sensitive, inclusive, and replicable across Europe. Our moonshot is the creation of a European commons of 3D cultural data, where heritage, design, and innovation intersect to build a digital economy that embeds cultural, social, and ecological value as a public good.
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