The Association for Competitive Technology (ACT) supports the establishment of the European Competitiveness Fund (ECF) as a key instrument to strengthen Europe’s technological leadership and innovation ecosystem. The proposal represents an important step toward simplifying the EU funding landscape and improving access to finance for startups and small and medium-sized enterprises (SMEs). The consolidation of 14 EU funding programmes into a single framework has the potential to simplify access to funding and improve strategic alignment of EU investment priorities.

We support the proposal’s overarching goal to strengthen Europe’s competitiveness across strategically important technologies and industries, while addressing fragmentation in the EU funding landscape. For startups and SMEs in particular, access to capital and support throughout the innovation lifecycle remains one of the most critical challenges in Europe. If designed effectively, the ECF can help close this gap by facilitating faster, simpler, and more accessible funding mechanisms that support entrepreneurial growth and technological leadership.

This position paper highlights key strengths of the proposal, while also identifying areas where targeted improvements are necessary to ensure the Fund truly supports innovative companies across Europe.

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Improve Accessibility and Support for Startups

To ensure the effectiveness of the European Competitiveness Fund, funding instruments must better reflect the operational realities of startups and SMEs. Policymakers should ensure sufficient pre-financing mechanisms and clearer rules regarding the interaction between EU grants and private investment. In addition, stronger support structures, through local or EU-level advisory services, should assist startups in navigating EU funding programmes and preparing competitive applications.

Access to finance in Europe remains highly uneven across different founder profiles. Despite improvements in the EU’s innovation performance, significant gender disparities persist in investment allocation. According to European Commission data, less than €3 out of every €100 of venture capital invested in Europe goes to all-female founding teams, with the vast majority directed toward all-male teams.

This imbalance not only limits opportunities for women entrepreneurs but also represents a missed opportunity for Europe’s innovation potential. Similar disparities are observed in the allocation of capital to women-led investment funds, further reinforcing structural barriers within the ecosystem.

EU funding instruments under the ECF should incorporate measures to improve inclusiveness, including better monitoring of funding distribution, targeted support for underrepresented founders, and incentives to promote diversity in investment decision-making.

Reduce Bureaucracy and Accelerate Procedures

Access to EU funding should be significantly simplified in order to match the pace of innovation in digital sectors. We therefore advocate for reduced administrative burdens, faster evaluation timelines, and a fully digital application process through a single online platform. Streamlining procedures and improving the speed of decision-making will be essential to ensure that European startups and scaleups can effectively benefit from the opportunities created by the European Competitiveness Fund.

The European Competitiveness Fund represents an important opportunity to strengthen Europe’s innovation ecosystem and support the development of globally competitive companies.

The proposal includes several positive elements, particularly the creation of a centralised funding framework, the introduction of the Scale-up Facility, and the establishment of support mechanisms aimed at improving startups’ and SMEs’ access to EU funding.

At the same time, several aspects of the proposal require further refinement to ensure that the Fund effectively supports innovative companies across Europe. In particular, policymakers should address concerns related to the implementation of EU preference provisions and the design of EU grant mechanisms, while ensuring that funding instruments remain accessible to startups and scaleups.

As the legislative process moves forward, ACT encourages the European Parliament and the Council to build on the strengths of the proposal while addressing these issues. Simplification, speed, and accessibility must remain central objectives if the European Competitiveness Fund is to deliver on its promise of strengthening Europe’s leadership and supporting the growth of innovative companies across the Single Market.