Our Co-founder Mike Lebus, was recently featured in an insightful article for EU-Startups, one of the continent’s leading publications for technology and venture capital news. The piece, titled “How smart policies can strengthen Europe’s startup ecosystem and boost economic growth,” outlines a critical policy roadmap for European governments to ensure the continent remains competitive in the global race for technology leadership.

Lebus notes that while innovators like OpenAI dominate the current technological narrative in the US and China, Europe often appears to be a “third wheel.” This lag is exacerbated by high taxes, bureaucracy, and low growth, which contributed to record-low fundraising in the first half of 2025. Despite this, Europe possesses a strong foundation—top universities, financial hubs, and a massive consumer market. The solution, Lebus argues, is a proactive and coordinated policy response to reduce friction and boost early-stage growth.

Six Key Policy Recommendations for Europe

Lebus outlines six key steps that governments must urgently take to reverse the trend. These include:

Simplify Access to Grant Funding

Citing a recent AIN investor survey, Lebus stresses that grant funding is the number one change governments can make. He urges the EU to adopt models like Singapore’s Startup SG to streamline confusing and time-consuming application processes, offering a critical, non-dilutive lifeline to startups.

Enhance the R&D Tax Credit System

While R&D spending is growing, Europe’s R&D intensity (2.22% of GDP in 2023) still lags significantly behind the US (3.59%) and South Korea (4.85%). Lebus suggests simplifying the claims process so startups can file directly, avoiding costly third-party advisors and ensuring the full rebate is reinvested into innovation.

Promote National Startup Tax Incentive Schemes

Schemes like the UK’s SEIS and EIS have been instrumental in fostering angel investment. Lebus calls on governments to launch national awareness campaigns to educate potential investors about the generous tax reliefs associated with backing early-stage ventures, thus expanding the overall funding pool.

Make Talent Acquisition Easier

To prevent the continued “exodus” of successful European companies (such as Revolut and Spotify) that have had to move to access wider talent pools, governments must simplify visa routes. Creating a fast-track system for critical hires is essential for ensuring European companies can compete for top global talent.

The full article provides a comprehensive analysis of these and other necessary changes, including targeted early-stage tax relief and a necessary overhaul of the education system to foster entrepreneurial skills from an early age.

You can check out the original article on EU-Startups