Recent success stories show that European companies can become global leaders when they receive the right support. To build on this momentum, the EU must be bold in providing broader and better-adapted forms of support to help innovative businesses grow and expand.
On 4 March 2026, French quantum computing company Pasqal announced its intention to list on Nasdaq following a merger with Bleichroeder Acquisition Corp II (BBCQ), expected to be completed in the coming weeks. Now valued at $2bn, the start-up represents the kind of global technology champion Europe is capable of producing – and it is far from an isolated case.
Barely two months later, Finnish company IQM filed its F-4 registration statement with the US Securities and Exchange Commission and, on 2 July, became the first European quantum company to list on a US stock exchange through a merger with New Jersey-based Real Asset Acquisition Corp (RAAQ). IQM supplies more on-premises quantum systems than any other manufacturer worldwide, highlighting Europe’s leadership in quantum science.
Both companies are deeply rooted in Europe’s world-leading, predominantly publicly funded research base. Pasqal was co-founded by Nobel Prize-winning quantum physicist Alain Aspect, while IQM was founded by Dr Jan Goetz, who transformed his research at Finland’s Aalto University into a company in 2018.
Pasqal and IQM are examples of European deep-tech success stories: companies with a strong European foundation that are expanding globally. Both received early backing from the European Innovation Council, the EU’s flagship fund for start-ups. Others are beginning to emerge, supported by Europe’s robust research ecosystem, sustained public investment, growing long-term private capital and a renewed push to simplify regulation.
The potential is undeniable. According to Atomico, Europe saw a record 27,000 new technology companies founded in 2025.
Venture capital investment has increased tenfold over the past decade, delivering returns that outperform those seen in the United States. At the same time, rising European defence spending is driving innovative start-ups developing technologies with both military and civilian applications.
However, when it comes to growth and scaling, the European story becomes more complicated. Is Europe ready to offer the next IQM or Pasqal a pathway to scale while remaining based here? The available data paints a less optimistic picture.
Mario Draghi’s 2024 report summed up the challenge succinctly: Europe’s problem is not innovation – it is scaling up.
Raising more than €200m or €300m in Europe remains extremely difficult for founders. Although the European Union is the world’s largest single market, its capital markets remain fragmented. Risk appetite is limited, while institutional investors such as pension funds and insurance companies remain reluctant to allocate significant capital to innovation. As a result, many innovators simply cannot access the patient, long-term capital required to realise their deep-tech ambitions.
Europe cannot afford to become merely an incubator for other regions. This funding gap is not only an economic issue but also one of sovereignty, as the race for technological leadership will be decisive for Europe’s future competitiveness.
As policymakers and business leaders, we have a responsibility to give innovators the resources they need to launch, grow and establish themselves permanently across our continent. That is why the European Commission has partnered with long-term private investors to create the largest EU-backed instrument ever dedicated to scaling innovative companies: the Scale-up Europe Fund (SEF).
The SEF will finance funding rounds averaging more than €100m per company. With an initial deployment capacity of €5bn and the ambition to reach €20bn over time, the fund will focus on sectors critical to tomorrow’s economy, including quantum technologies, artificial intelligence, green technologies, fusion energy, dual-use technologies and life sciences.
The SEF is not an attempt to subsidise national champions. It is a competitive, market-driven fund managed by EQT, an independent investment manager with extensive experience in building global industry leaders. It is backed by a group of leading European institutional investors, including Novo Holdings, Santander, Intesa Sanpaolo, Caixa, Allianz and APG. The fund’s objective is to generate top-tier returns for its investors.
The fund represents an important milestone for European innovation, but it forms part of a broader effort. Measures under the Savings and Investments Union are designed to increase retail participation in capital markets, encourage greater equity investment from institutional investors and reduce fragmentation across the EU single market.
In addition, the Commission’s proposed “EU Inc.” framework – also known as the “28th regime” – would simplify company creation by allowing founders to establish, entirely online, a company operating across all 27 Member States in less than 48 hours and for under €100, under a single set of rules.
There is no doubt that Europe, as a Union, still has much work to do. Balancing national priorities with continental ambitions is not always straightforward. Continued commitment from European institutions, national governments and industrial partners will be essential if Europe is to achieve its ambitions, including by increasing investment in research and development.
Europe must build on its current technological momentum – there is no time to lose. IQM, Pasqal and many other European companies demonstrate what our innovators can achieve when the right conditions are in place. The objective is now clear: to enable the next generation of European champions to scale globally while remaining firmly rooted in Europe, strengthening productivity, employment, tax revenues and long-term competitiveness.
*Ekaterina Zaharieva is the Commissioner for Start-ups, Research and Innovation. Kasim Kutay, meanwhile, is the CEO of Novo Holdings.
