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EU moves forward on $5.8B scale-up fund to keep startups from leaving
The European Union has stepped up efforts to grow its homegrown tech sector and reduce dependence on US firms, advancing plans this week for a €5 billion ($5.8 billion) fund to help startups scale in Europe rather than seek capital or buyers abroad.
Analysts welcomed the initiative, but said its success will depend on whether it can spur wider private investment in European tech companies.
The European Commission this week selected Swedish investment firm EQT — one of Europe’s largest private market investors, with $311 billion in assets — to manage the fund; first investments are expected this autumn. The fund is backed by the Commission and private investors, including Allianz, CriteriaCaixa, and Novo Holdings.
The effort is part of a broader push to strengthen the EU’s tech sector following the 2024 Draghi report on competitiveness. Other initiatives include EU Inc proposals aimed at reducing red tape for startups and a Tech Sovereignty Package due May 27 that’s expected to include measures to support domestic technology firms.
The push reflects concerns that Europe has struggled to produce and retain globally competitive tech companies. Only around 8% of global scale-up firms are headquartered in the EU, according to European Commission data, compared to roughly 60% in North America. And many promising startups are acquired by larger US firms before they reach the scale needed to compete globally; Google’s 2014 buyout of DeepMind is a notable example.
“Europe produces world-class deep-tech innovation and has a strong pipeline of early-stage startups, but has consistently struggled to convert that pipeline into globally competitive companies at scale,” said Richard Stevens, associate vice president of IDC’s IDC4EU European Government Consulting unit.
EU-based startups face a variety of barriers, including fragmented capital markets across member states. That can make it difficult to assemble larger funding rounds in the the $58 million to $347 million range tech firms need to compete with US and Chinese peers, said Stevens. Varying regulatory environments across EU member states are another factor.
“The cumulative effect is that many of Europe’s most promising technology companies either relocate to the US to access deeper capital markets, or get acquired by non-European players before they reach their full strategic potential,” said Stevens.
European tech startups suffer from a “poor culture of private funding for entrepreneurship” in the EU, said Forrester senior analyst Dario Maisto, who focuses on cloud computing and digital sovereignty. Public funding mechanisms often reward administrative compliance rather than commercially viable businesses, he said.
Stevens said the €5 billion target would make the Scaleup Europe Fund the largest dedicated scale-up investment vehicle assembled in Europe — and the appointment of EQT as fund manager sends an important signal.
“The EU’s decision to structure this on commercial terms, with market-standard governance and a competitive selection process, reflects a deliberate move away from traditional grant-based instruments toward a model designed to mobilize private capital at scale. That is significant,” he said.
The €5 billion should be considered a starting point, analysts said, with significantly higher levels of capital needed to put the European technology sector on par with the US — where deployed venture and growth capital annually runs into the hundreds of billions of dollars – and China – which benefits from state-backed investments.
“The €5 billion mark is a drop in the sea,” said Maisto, “but it will help build a more stable scale-up ecosystem if implemented well.” He warned that the EU is attempting to address structural problems primarily through funding, even though bureaucratic processes still risk undermining its efforts.
Stevens said the scale-up fund’s value will be measured by its ability to keep high-potential European companies “anchored on the continent” and attract co-investment from institutional and corporate investors.
He also pointed to the potential for a “self-reinforcing ecosystem effect” in sectors including AI, quantum computing, clean energy, biotech and space technology — areas where Europe already has strong technological capabilities and where IDC expects strong growth over the next five years.
“A €5 billion fund cannot close the gap with the US and China alone, but if it catalyzes broader structural changes in how European capital is deployed and attracts momentum from the surrounding investment community, it could be genuinely transformative,” said Stevens.
Do Apple’s accessibility efforts point at its AI plans?
You can usually measure a society by the way it treats its most vulnerable populations, and technology often can help people live better, more autonomous lives. Apple firmly believes that, and this year’s raft of accessibility announcements introduced to mark Global Accessibility Awareness Day shine a light on that belief.
The company has won a string of awards that recognize its work, including praise from the National Federation of the Blind, the American Foundation for the Blind, the Cerebral Palsy Foundation, and the National Association of the Deaf. These tools matter to everyone, of course; as we age and our faculties decline, the accessibility solutions Apple creates today promise better tomorrows.
AI + Accessibility + AppleWith WWDC just weeks away, Apple’s latest accessibility features promise powerful technologies for all. Most will arrive with the 27 series of Apple operating systems — and many of the most powerful tools lean deeply into AI and Apple Intelligence.
“The accessibility features our users rely on every day become even more powerful with Apple Intelligence,” said Sarah Herrlinger, Apple’s senior director of Global Accessibility Policy and Initiatives. “With these updates, we’re bringing new, intuitive options for input, exploration, and personalization, designed to protect users’ privacy at every step.”
They also give us a glimpse at what Apple has planned across its operating systems in terms of improved contextual intelligence in Siri. For example, a new tool called Image Explorer in VoiceOver lets you use Apple Intelligence to generate detailed descriptions of images held across your system, and those images can be documents, bills, receipts.
The idea is that you can hold up your iPhone, point your camera at the item and ask Apple Intelligence to describe what it is, read it to you, ask questions about what’s there, and even ask follow-up questions about what it sees. This will make a huge difference for disabled people who use voice to control their iPhone or iPad. (It remains unknown whether these services will also be available on Mac.)
All the same, the fact that these new accessibility improvements work on device mean you can use them in complete privacy, which makes them even more compelling.
See it, say it, do itWhile Apple hasn’t said anything specific, it’s hard to ignore that this feature could be of use in a more context-savvy Siri. If you think about it, what you see on your iPhone display is also an image; it seems plausible you’ll be able to use Siri to get things done on your device pretty soon.
That’s certainly true of a second accessibility improvement Apple introduced — Voice Control, which will let you navigate your device using natural speech. This is great for those of us who cannot easily use touch to navigate a device, and in combination with Image Explorer suggests deep use cases for all of us. After all, if Siri can open files with a voice command, why not with a text prompt? And if that file happens to be a workflow or agentic action, this could utterly transform the iPhone UI.
AI that solves real problemsApple is also putting more intelligence into Accessibility Reader, an invaluable tool for users with low vision or dyslexia that reads text to them. Now boosted by AI, this can handle far more complex source materials, including tables and multi-column layouts.
Accessibility Reader also takes a leap beyond just simply reading such material; thanks to AI, it can now generate on-demand summaries and even live translation of the text you choose to read. There’s intelligence in FaceTime conversations, too. Apple intends to introduce a new API for sign language interpretation app developers that lets users add human interpreters to ongoing calls.
AI is also available in video, meaning your device will automatically generate subtitles for spoken dialog for any content, including videos shared by family and friends. Apple’s on-device speech recognition means subtitles can be generated privately and appear automatically for uncaptioned videos on iPhone, iPad, Mac, Apple TV, and Apple Vision Pro.
Mobility transformed with Vision ProApple introduced a version of the Apple Watch Activity app for wheelchair users in 2016. This was a new first, as there had never been an accurate fitness tracker for wheelchair users before. The team building the solution had to create brand new algorithms and engage in massive tests to ensure it got this right.
Ten years later, and Apple has introduced something new: the capacity to control compatible power wheelchairs using the calibration-free eye-tracking capabilities of Apple Vision Pro. While this is interesting from a technical point of view, for some wheelchair users — particularly for those who cannot use a joystick to control their system — it’s a major benefit.
Pat Dolan is the founder of GeoALS, which works to improve care, accelerate research, and advocate for the Amyotrophic lateral sclerosis (ALS) community. ALS is a progressive neurodegenerative disease that affects nerve cells in the brain and spinal cord. Dolan, who has lived with ALS for a decade said: “The option to control my power wheelchair on my own is gold to me; Apple is developing life-enhancing technology for the people who need it most.”
For the manyIn many ways, these features open up new opportunities for people who are customarily denied at least some of the chances many of us take for granted.
Apple CEO Tim Cook in 2018 explained why Apple places so much focus on accessibility within its platforms. “It’s a basic core value of Apple,” he said. “We don’t make products for a particular group of people; we make products for everybody. We feel very strongly that everyone deserves an equal opportunity and equal access.”
Ultimately, that’s the point with Apple’s approach to accessibility. The company builds all these features into its basic devices, which means people who need them aren’t forced into paying an accessibility tax in order to access the features they need.
“Apple’s approach to accessibility is unlike any other,” said Cook in a statement. “Now, with Apple Intelligence, we are bringing powerful new capabilities into our accessibility features while maintaining our foundational commitment to privacy by design.”
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Microsoft refreshes Surface line with biz-friendly features – and a high price tag
Microsoft this week refreshed its Surface for Business range of devices, adding features designed to appeal to enterprises. But high prices for the devices might be hard for IT buyers to swallow.
Microsoft announced a new Surface Pro for Business on Tuesday, alongside two variants of its Surface Laptop for Business devices – a premium model available in 13.8- and 15-in. versions and a lower-cost 13-in. option that Microsoft describes as its “entry-premium tier.”
“The new Surface products use the latest Intel Core Ultra Series 3 processors and are very focused on features that business users will appreciate,” said Tom Mainelli, group vice president for IDC’s device and consumer research. He noted that an optional integrated privacy screen with anti-glare on the 13.8-in. model would likely appeal to frequent travelers, for instance.
“I’m also happy to see a 5G option on the Surface Pro for Business,” Mainelli said. “Overall, the specs on offer here are compelling.”
Microsoft plans to add the option for Snapdragon X2 processors “later this year.”
The 13-in. Surface Laptop for Business is available with 16GB and 24GB of RAM and starts at $1,499 — with an 8GB option available later this year for $1,299. It includes a removable “Gen4 SSD “designed for enterprise serviceability,” Microsoft said.
The 13.8- and 15-in. Surface Laptop for Business devices start at $1,949 and also feature a haptic touch pad.
“From window snapping and resizing to dragging, dropping and navigating content, haptics reinforce intent across the operating system and through select third-party apps [deliver] a more precise, responsive and confidence inspiring experience,” Nancie Gaskill, vice president, Surface Business at Microsoft, blog post.
The launch of the business-focused devices follows a recent price hike for the rest of the Surface line-up, likely due to the ongoing memory chip shortage; the price tag for the Surface for Business also reflects the challenge PC manufacturers face in keeping costs down.
“Skyrocketing memory costs mean higher system prices, and that’s reflected in this Surface lineup,” said Mainelli. “I don’t see it as a strategic move by Microsoft to move further upmarket, but a simple reflection of the bill of materials.”
Rising prices could create uncertainty for IT buyers when upgrading corporate fleets.
“Enterprise buyers are facing difficult choices as they try to stay ahead of their refresh cycles amid rising costs and static hardware budgets,” said Mainelli. “Some may consider pausing purchases in hopes that prices will fall back, but we see no evidence that this will happen any time soon.
“We continue to recommend that companies buy what they can, as extending hardware lifetimes too far can lead to productivity and security headaches.”
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