Key facts
- Latvia, Portugal, and Greece led Europe in scaleup company growth between 2023 and 2024.
- Ireland, Luxembourg, and Estonia experienced the largest declines in scaleup performance during the same period.
- Ireland, Sweden, and Denmark had the highest concentration of scaleups per capita in 2024.
- Agriculture and fishing industries saw the largest growth in scaleups from 2023-2024.
- The electricity and gas sector has shown significant growth due to the EU's energy transition.
New companies in Europe are expanding rapidly, with scaleups in Latvia, Portugal, and Greece showing the strongest performance between 2023 and 2024, particularly in employee numbers. This data comes from the European Scaleup Institute (ESI).
Conversely, Ireland, Luxembourg, and Estonia registered the biggest drops in scaleup performance during the same period. A scaleup is defined as a company that has existed for 10 years or less, has validated its business model, and is experiencing rapid, sustainable revenue growth, driving innovation and employment.
In terms of scaleups per capita, Ireland led with 415.3 per million population in 2024, followed by Sweden (354.7) and Denmark (274.3), according to the European Commission. Romania, Bulgaria, and Latvia had the lowest numbers.
While agriculture and fishing saw the largest growth in scaleups between 2023 and 2024, the information and communication, support services, and electricity, gas, and steam sectors are the top industries for scaleup growth over a five-year period. The electricity and gas industry's growth is attributed to the EU's energy transition, with a notable upward trajectory observed between 2020 and 2024.
The EU has announced a €5 billion initiative to support innovative deep tech scaleups, with initial investments anticipated in the autumn. The OECD highlighted the vital role of public funding for startups and scaleups in enhancing competitiveness, innovation, productivity, and employment.