Europe has a strong research base and a dynamic startup ecosystem. Developing an innovative technology, however, is only the beginning. One of the biggest challenges comes when a company needs to take the next step: scale its operations, attract significant investment and compete internationally.
The European Union’s new Scaleup Europe Fund aims to address this funding gap. With a target size of approximately €5 billion, the new Fund will focus, among other areas, on companies operating in biotechnology, medical technologies and artificial intelligence.
Funding as a Challenge for Business Growth
For many innovative companies, securing initial funding is only the first step in their journey. As a company grows, its capital requirements increase significantly.
This challenge is particularly important in sectors such as biotechnology and medical technologies, where the journey from research to market can require substantial investment. Developing and testing a technology, conducting clinical trials, meeting regulatory requirements and entering new markets can create funding needs that go beyond the capacity of traditional financing instruments.
As the European Innovation Council notes, companies struggle to find within the European Union the capital they need to grow and compete internationally. Seeking funding outside Europe to overcome this barrier can result in valuable expertise and know-how moving to third countries.
What Changes with the Scaleup Europe Fund
The Scaleup Europe Fund was created to finance companies at an advanced stage of development that require significant capital to scale further. The Fund is targeting a total size of approximately €5 billion, with the European Commission contributing €1 billion and the remaining capital coming from private investors. It will be able to make significant direct investments in European scaleups, in the range of €100 million and above, including follow-on investments.
Healthcare at the Heart of the Initiative
Healthcare is among the key areas of interest for the new initiative. The strategic sectors in which the Fund may invest include life sciences, biotechnology and medical technologies, while its broader scope also covers technologies such as artificial intelligence.
For European healthcare companies, this is particularly significant. A startup may have the ability to develop a new diagnostic tool, an AI application or an innovative biotechnology solution, but this does not necessarily mean it has the resources required to bring that solution into widespread use.
Access to larger amounts of investment capital can provide the next step for companies that have already demonstrated the value of their technology and now need to expand production, enter new markets or strengthen their commercial presence.
What Does This Mean for the Healthcare Ecosystem in Greece?
The new Fund will be open to companies established – or planning to establish themselves – in EU Member States and eligible associated countries, provided that they operate in strategic technology sectors and have reached a stage of development that requires significant investment capital. The first investments are expected in autumn 2026.
For startups and companies in digital health, biotechnology and medical technologies in Greece, the new initiative creates an additional funding opportunity at European level as they move into more advanced stages of growth. For most companies, however, gaining access to this particular Fund is not necessarily the immediate objective. The priority is to build the foundations that will enable them to move from developing and testing a solution to becoming investment-ready and, ultimately, scaling their business.
From Solution Development to Investment Readiness: The Role of Health Hub
As the European Digital Innovation Hub for health and pharmaceuticals in Greece, Health Hub supports SMEs and startups at different stages of their development. Through services including technology testing, digital maturity assessment, training, networking and support in identifying funding opportunities, the Hub helps companies strengthen their readiness and take advantage of the opportunities available across the European innovation ecosystem. Learn more about the services offered by Health Hub here.