EU's technology fund seeks to curb talent loss while major corporations strengthen their hold on the market

Europe’s major corporations maintain dominance as startups face hurdles entering the Fortune 500

Large, established European companies continue to shape the region’s economic scene, while startups encounter difficulties growing in a fragmented investment climate. Traditional players such as Sopra Steria Group and Séché Environnement have shown mixed but stable results, and the European Union is ramping up support with a

to foster local innovation. At the same time, established firms are relying on acquisitions and cost-saving strategies to preserve their market positions, making it tough for emerging businesses to compete with entrenched industry leaders.

French IT powerhouse Sopra Steria Group posted a 2.9% drop in organic revenue for Q3 2025, attributing the decline to postponed UK defense projects, according to its

showing €1,315.8 million in revenue. Nevertheless, the company reaffirmed its annual growth outlook, expressing optimism for a Q4 recovery led by the aeronautics and public sectors. Likewise, waste management specialist Séché Environnement experienced a 3.2% fall in hazardous waste revenue, citing challenges from circular economy regulations, as detailed in a . These outcomes highlight the difficulties legacy companies face in adjusting to regulatory changes and market instability, even as they maintain significant operational scale.

In contrast, startups continue to face funding shortages at crucial expansion phases. The EU’s planned Scaleup Europe Fund seeks to address this by investing in sectors like quantum computing, artificial intelligence, and clean energy, Bloomberg noted, with €3 billion already pledged by organizations such as Denmark’s EIFO sovereign wealth fund and Spain’s Criteria Caixa. The fund’s emphasis on investments over €100 million signals a targeted effort to keep deep-tech expertise within Europe. Still, challenges remain: recent deals such as Apple’s acquisition of French AI startup Datakalab and AMD’s purchase of Finland’s Silo AI demonstrate the ongoing migration of European innovation to international tech centers, according to Bloomberg.

For established companies, mergers and efficiency improvements are central strategies. Healthcare provider Clariane SE revealed a cost-cutting initiative in France and Germany to streamline its business after asset sales, as discussed in an

. The company anticipates these measures will lift EBITDA margins to 12% by 2025, with the full impact expected in 2026. Finnish pharmaceutical firm Orion Group also reported record operating income for Q3 2025, fueled by strong insurance performance and investment returns, according to its . These examples show how established players use their scale and financial resources to weather broader economic challenges.

One notable exception is 80 Mile PLC, a UK energy firm that has formed several partnerships to grow its biofuels business in Italy, as announced in an

. By fully owning the Ferrandina facility and securing tolling deals with Fortune 500 energy companies and Italian partners, 80 Mile stands out as a rare startup expanding through strategic collaborations. Managing director Eric Sondergaard stated that these agreements confirm Ferrandina’s importance in Europe’s shift to renewable fuels, according to PR Newswire.

Despite these initiatives, Europe’s innovation landscape remains divided. Visa’s

pointed to strong cross-border e-commerce growth in Europe, but the company’s focus on stablecoin and tokenization projects highlights a dependence on global fintech trends rather than domestic startups. Meanwhile, Hanza AB’s acquisition of Milectria and BMK—two contract manufacturers in defense and electronics—shows that even mid-sized companies are consolidating to address specific industry needs, as mentioned in a .

As the EU’s technology fund gathers pace, its effectiveness will depend on aligning with private sector goals and retaining skilled professionals. For now, Europe’s large corporations continue to lead, while startups face ongoing challenges in scaling and securing investment.