Europe's startup ecosystem is maturing, and a new wave of scaleup companies is reshaping the continent's economic landscape. According to the latest data from the European Scaleup Institute (ESI), the fastest-growing scaleups between 2023 and 2024 were concentrated in Latvia, Portugal, and Greece, measured by employee expansion. In contrast, Ireland, Luxembourg, and Estonia recorded the sharpest declines over the same period.
A scaleup is defined as a company that has moved beyond its initial startup phase, validated its business model, and entered a period of rapid, sustainable revenue growth. These firms are typically ten years old or younger and are critical drivers of innovation and employment across the EU.
Scaleup Density and Regional Disparities
When adjusted for population size, the picture shifts. Ireland leads the EU with 415.3 scaleups per million inhabitants in 2024, followed by Sweden (354.7) and Denmark (274.3). At the other end of the spectrum, Romania, Bulgaria, and Latvia have the lowest density of scaleups, according to European Commission figures. This highlights a persistent gap between Western and Northern Europe and parts of the south and east, though Latvia's strong growth rate suggests potential for catch-up.
The ESI data also reveals which industries are driving scaleup performance. While agriculture and fishing saw the biggest single-year growth between 2023 and 2024, the most dynamic sectors over a five-year horizon are information and communication, support services, and electricity, gas, and steam. The energy sector, in particular, has experienced the steepest upward trajectory since 2020, fueled by the EU's ambitious energy transition and the push for decarbonisation.
This trend is reflected in policy moves. Last year, the European Union announced a €5 billion initiative aimed at supporting the continent's most innovative deep tech scaleups. However, the first investments are not expected until autumn 2025, a delay that the OECD warns could hinder the ability of these companies to scale effectively and contribute to economic growth.
For context, the broader European startup ecosystem continues to evolve. In France, the Station F hub in Paris has become a symbol of the country's tech ambitions, though political uncertainty looms. Meanwhile, Portuguese startup Promptly Health has linked 70 million patient records across Europe and Brazil, illustrating how scaleups in health tech are expanding their reach.
The data underscores a fragmented but dynamic landscape. While the Baltic states and Southern Europe show promising growth rates, the concentration of scaleups remains highest in established innovation hubs like Dublin, Stockholm, and Copenhagen. The challenge for policymakers will be to ensure that the EU's €5 billion deep tech fund and other initiatives translate into sustained growth across all member states, not just the usual frontrunners.
