Turning point
Europeans have no less appetite to start a tech company than their U.S. or Chinese counterparts. Europe hosts 35,000 early-stage startups, more than any other global region, the Commission said last year. But founders run into trouble when they want to serve a bigger market, raise more capital, or poach the best talent.
Then they face 27 regimes for setting up shop, 27 capital markets and 27 ways of employing and rewarding talent. Going elsewhere is often the easier option.
Over the past decade, more than €700 billion in tech market value has left Europe, as European companies were acquired by non-European ones or chose to list elsewhere, according to research from McKinsey and Swedish investment group EQT shared exclusively with POLITICO.
European startup founders’ demands to Brussels have been consistent: Eliminate the barriers.
“For years now, France Digitale has been calling for better market access, financing and talent pipelines for European startups,” said Maya Noël, CEO of France Digitale, a French startup lobby. “What has changed is that now Brussels is finally listening.”
Earlier efforts focused on aligning the policies of EU countries on topics such as how to issue visas for tech talent or reward them with stock options. It relied on country-led initiatives, such as the Europe Startups Nations Alliance, which never gained mainstream attention.
