We recently reviewed for our readers the “The State of European Tech, The most comprehensive data-driven analysis of European technology” by stateofeuropeantech.com. The looked at the data and also interviewed over 12,000 founders across Europe.
According to the study, 3 Countries (United Kingdom, Germany and France) surpassed $10B cumulative capital invested since 2015 and we are on track to surpass $110B capital invested in Europe since 2015.
There are 20 countries with a VC-backed tech company reaching a $B+ valuation, and we list them here: Sweden, Netherlands, Switzerland, Denmark, Ireland, Finland, Russia, Spain, Austria, Belgium, Czech Republic, Estonia, Luxembourg, Poland, Portugal, Romania and Ukraine.
1 record investments by pension funds ($902M) in European VC in 2018 and $50B funds raised by European VCs from 2015-2019 H1.
Interesting facts about the founders, is that 50% of them were first-time founders and 81% lived comfortably/met basic expenses with extra left over. This might be the key finding and factor for entrepreneurial success of some countries. We could say that, surplus is essential for the entrepreneurial drive but not the factor for the success.
Looking at the gender of founders, the study found out that male founders are overwhelming represented – 80%. They say $92 in every $100 invested in Europe went to founding teams that are all men and for every woman executive, there are 12 men executives. This might mean something for some or different things for others. We would not want to suggest that there is less opportunity for women founders because this would be a false conclusion based on these data. This could very well point into the direction of the difference in free personal choices. Man are more willing to choose the path of entrepreneurship than women. Unfortunately, the authors of the study, clearly under ideological intoxication, interpret the figures as an “Europe’s diversity problem”.
Some psychological insights were also discovered by the study. It appears that “many founders want help. As many as 57% of founders who have raised external capital said they would appreciate receiving support from the board or by investors to help manage the pressure of being a founder. This is also very understandable considering the fact half of them are first-time founders and feel the need for support.
Another insight is quite positive. The study found that Europe’s professional developer pool continues to be deeper than in the US (6.1M v 4.3M), while at the later stages European companies are closing the gap with the US on the use of stock options to incentivise talent.
And finally, about 40% of founders are admitting the EU digital and tech policies are unknown to them and they are in need of more transparency and predictability, as any entrepreneur anywhere in the world.