Highlights from the Innovation Fund
Winners, innovations, and insights
The growth and resilience of Europe’s micro- and small enterprises have never been more critical. It’s why we launched the Mastercard Strive EU program leveraging our infrastructure, technology and partnerships, in collaboration with the European entrepreneurial community, to accelerate the digital transformation of small businesses.
Why foster innovation for micro- and small businesses?
Micro-businesses with fewer than ten employees make up the vast majority of businesses. Employing almost one-third of the EU’s workforce, they deliver €1.8 trillion of wealth as measured by value added.
Micro- and small businesses in the EU are deeply embedded in local communities and are more likely to hire workers from underserved groups, including those who are younger, older, and less skilled.
Inflation, high interest rates, the energy crisis, and the Russia-Ukraine War's impact on trade, sanctions, and supply affect EU businesses' recovery and growth. Micro-businesses have demonstrated resilience amid these challenges and "proven their resilience in the face of current challenges," outperforming larger businesses in employment and real value added in 2023.
of small businesses are entirely non-digital, and only one-third have taken action on climate change, despite accounting for 40% of emissions. Many lack access to working capital and credit, underutilize artificial intelligence, have limited tools and know-how to protect their businesses against cyber threats, and find it difficult to keep pace with shifting consumer preferences and regulatory expectations around environmental sustainability. As the EU drives the twin transitions toward a digital and sustainable future, it’s crucial to equip micro- and small businesses with the right tools and support to drive their growth.
An ecosystem empowering Europe’s small businesses
Harness artificial intelligence to improve efficiency, streamline operations, inform decision-making, and boost revenues and competitiveness.
Go digital safely by enhancing their ability to understand, mitigate, and manage cyber risks.
Navigate evolving consumer preferences and regulatory expectations around environmental sustainability by enabling automated ESG reporting and other tools that improve compliance capacity and support small businesses to stay competitive.
Unlock working capital and credit through embedded finance and inclusive credit products that could improve liquidity and open new pathways for growth.
Surfacing innovations to overcome small business digitalization and sustainability challenges
Planethon’s solution, Ragna, will focus on increasing small business compliance and reporting, enabling them to address sustainability issues more efficiently through the use of AI-powered advice.
IVÆKST is a one-stop-shop platform to assess small businesses' needs and provide tailored guidance on AI adoption and cybersecurity.
Redamp.io offers a one-stop shop for monitoring cybersecurity issues and recommending relevant solutions to address risks across multiple devices and platforms.
Valerian offers a user-centric web application that simplifies the funding process for small businesses and uses diverse data sources and AI to provide quick credit decisions and business insights.
tilt will increase access to (green) working capital, which will primarily enable small businesses to remain competitive with larger firms and make changes to their businesses to further sustainability.
Direct Market is a digital marketplace that will use AI to match producers with retail buyers, optimizing supply chains and increasing profitability for small agribusinesses.
Lupasafe offers continuous monitoring, low-touch, day-to-day risk monitoring to ensure EU regulatory compliance.
It Goes Forward is a return management system that uses data analytics and automation to reduce costs and environmental impact for e-commerce businesses.
Cresco Cybersecurity offers proactive defense through penetration testing and ethical hacking to strengthen security.
Bizcuit offers integration of comprehensive financial management tools into existing financial services apps, automating invoice processing, streamlining payments, and simplifying access to credit in a familiar digital environment.
Key insights from the Mastercard Strive EU Innovation Fund
The majority of applicants (77%) were startups. Of these, almost 50% reported access to capital significantly affects their ability to roll out new solutions. Lenders often see companies offering solutions for small businesses as risky due to high customer acquisition costs and growth speed, making raising capital challenging and time-consuming. Innovation funds are important in filling startup funding gaps and supporting EU startups to mature.
Forty percent of applicants listed AI as a primary focus for their solution and a further 23% as a secondary focus, making it the most common among applicants. A further 10% of applicants referenced data-driven solutions, automation, and AI tools as a part of their solution but not as a focus area for their application. The embeddedness of AI in applications, even when it’s not highlighted, indicates the broader role it plays as an enabler and underlying driver of innovation and, more specifically, its applicability across diverse use cases.
Across all applications, the average applicant firm was 4.74 years old. Cybersecurity applicants were on average 5.6 years old, suggesting that this field is more established, and companies have had more time to grow, gain traction, and establish themselves and their solutions in the market.
