Flanders’ startup value climbs, but founders warn of a scale-up squeeze
Startups based in Flanders have reached an estimated €74 billion in combined value, underscoring the region’s growing role in Europe’s innovation economy. But founders and executives say the momentum is at risk as companies struggle to secure late-stage financing needed to expand internationally.
Leaders from LEGALFLY, AmphiStar and Rainbow Crops are calling for the creation of a €500 million growth fund aimed at helping promising firms bridge the gap between early traction and large-scale global expansion. They argue that while seed and early-stage capital is increasingly available, the market for scale-up rounds remains thin—creating pressure to relocate or sell to foreign buyers.
Deep tech at risk of leaving the region
The founders’ appeal focuses particularly on deep tech—companies built on advanced science and engineering with longer development cycles and higher capital needs. Without reliable growth funding, they warn, intellectual property and high-value jobs may migrate to jurisdictions where financing is deeper and commercialization pathways are clearer.
Push for IP reforms to keep innovation local
Alongside the proposed fund, the group is urging IP reforms designed to make it easier for startups to protect and commercialize inventions while remaining headquartered in Flanders. The founders argue that better-aligned IP frameworks would strengthen negotiating positions with investors and partners and reduce incentives to move key assets abroad.
The proposals arrive as European policymakers and investors debate how to close the continent’s scale-up gap. For Flanders, the founders say, the next phase will depend on whether capital markets and regulation can match the region’s early-stage innovation output with the resources required to build global champions.
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