Young Universities for the Future of Europe (YUFE) is an Alliance emerging from a European Commission initiative to provide examples of what a European University should look like. YUFE has been active since 2019 and currently consists of nine young universities in Europe and two non-academic partners. They have a strong interest in promoting education that is student-centred and oriented towards solving practical societal challenges, embracing multiculturalism as a key trait of the European Union. The Alliance has a series of instruments to promote entrepreneurship and innovation: almost imporantly, Challenge Teams that seeks to develop solutions to societal issues and Yufethon, an online competition of innovative ideas. Moreover, the Inno4YUFE project promotes innovation , and YUFERING fosters research and knowledge transfer with business and civil society. YUFE has received positive feedback about its challenge-based approach, the involvement of citizens as additional stakeholders besides businesses and governments, and the wide promotion of innovation and entrepreneurship.