UK startups could score in European Champions League

The European Commission has opened applications for what it is calling the “Champions League of Startup Hubs”; and interested parties have until 10 March 2026 to apply. 

As businesses fight for funding, innovation hubs can provide the support that they need, especially in the early stages of their journey. This new initiative by the EC is focussed on supporting 10 to 18 hubs that will get a financial boost but also be able to share resources. 

The EC adds that the call is especially targeting “hubs with strong research capabilities and sectoral expertise in deep tech areas from all over Europe”.

Shared expertise

The EC shares in its call for applicants that the main push for this programme is “enhanced interconnectivity” as the emerging innovation hubs “will gain mutual access to research infrastructures, investors, mentors, talents, and collaboration activities”.

It is part of a wider programme called the “Lab to Unicorn Initiative”, announced as part of the European Startup and Scaleup Strategy, which is focused on boosting growth in the startup sector. 

Announced in May, the Strategy has the mission of “making Europe a great place in the world to launch and grow global technology-driven companies”; and the UK will feel the benefit too despite Brexit. UK ventures can apply to take part through Horizon Europe funding streams like the EIC Accelerator.

Slashing bureaucracy

The strategy is made up of a 26 action plan – which includes offering “better access to infrastructure, networks, and services”. However, it is also hoped it will “reduce the reasons to relocate outside the EU” by cutting the red tape for ventures. The decision to postpone the EU AI Act is a controversial part of this bid. 

In the UK, there have been reports of entrepreneurs upping sticks and moving to Dubai, among other locations, where the tax regime, they argue, is far more conducive to nurturing growth. 

The Government decision to scrap special tax privileges for non-domiciled residents in April has also been pointed to; as has the plan to increase capital gains tax (CGT) on the sale of business shares to 14% on their first £1 million of exit cash and then 18% in April 2026. 

Businesses also claim that they are facing additional bureaucracy as we move towards the implementation of Making Tax Digital. Although it is sole traders who will be impacted first, changes will happen for all businesses alongside new ID mandates from Companies House. 

Expansion into Europe

As many of our Startups 100 founders reveal, the EU is the natural next area to target after they have gained a footing in the UK. For example, Silton, which was Number 55 in this year’s award list, is redefining eye care with technology that allows remote monitoring and tackles preventable vision loss. As well as working with UK health trusts, it lists the European Space Agency among its clients. 

Programmes like Horizon Europe allow businesses to bid for funds from a €93.5 billion flagship research and innovation programme. However, this latest strategy could mean that accessing expertise and funding from the EC can happen through a UK hub but founders will immediately benefit from access to a network on the continent; and this, especially for early -stage ventures, could be a huge leg-up the ladder.