Over 4.5 million people working in 830,000 companies in 20 EU startup hubs.
A new Startup Europe report done for the first time in an innovative way extract company data from 20 cities and has put the spotlight on Europe’s vibrant startup scene. The analysis reveals how local startup ecosystems are connected. While some cities are well connected notably Paris and Brussels, London and Berlin there is a lack of connectivity across other cities.
A newly released interactive map (available at www.startuphubs.eu) zooms in on 20 startup ecosystems in 15 EU countries. It identifies:
- 830,000 companies are active across 20 startup hubs, together they employ over 4.5 million people and generating over €420 billion in revenue
- The top 5 cities in terms of revenue generation were London, Berlin, Munich, Rome and Paris. They have generated over €326 billion of revenue and are employing nearly 3.5 million people
- Over 4,000 companies that have received funding through venture capital and large angel rounds, usually known as startups, have collectively generated €5 billion of revenue, employing over 34,000 people. These companies have raised €36 billion of investment from European and international investors
- Over 41,000 “IT software development” and “IT web & information services” businesses which collectively generate €18.4bn revenue, employ 211,785 people and have raised investment of €5.73bn
- Berlin, London, Paris and Stockholm are the most developed and established startup hubs
- Growing startup ecosystems are to be found in Amsterdam, Copenhagen, Dublin, Helsinki, Madrid, Manchester, Munich, Oslo, Rome and Vienna
- Athens, Brussels, Bucharest, Malmo, Tallinn and Warsaw are emerging startup ecosystems. There are particularly strong connections between companies in Brussels and Paris
- The interactive map provides the foundation of a solution that will offer European policy-makers, investors and entrepreneurs more accurate data than any other economy in the world. This will be an enduring competitive advantage for European entrepreneurship and an important element of the digital single market.
The report has been published in advance ofStartup Europe Comes to Universities week. This initiative aims to showcase the commitment of European universities to create a strong culture of entrepreneurship and innovation that is spreading in the university community. And as result transferring it to the society by creating startups and spinoffs with high added value, based on knowledge and technological development.
The report, provides new insights into the scale and nature, strengths and weaknesses of, and the relationships between, Europe’s startup ecosystems. It was carried out by Grant Thornton and Trampoline Systems on behalf of the European Commission. You can download the report from the EU publications website.
In addition to the mapping exercise, interviews with over 200 entrepreneurs, investors, accelerators, co-working spaces, government officials, universities, businesses, network groups and startup influencers and shapers have pinpointed some of the barriers and opportunities that exist within these startup ecosystems. These include:
290,000 of the businesses mapped are less than five years old, underlining the entrepreneurial culture that is being created across Europe. These young businesses employ 1.1 million people, have a combined revenue of €87 billion and have raised nearly €10 billion in investment. ‘The report identifies a number of ways in which the entrepreneurial culture in Europe is changing and the different initiatives in place to support this, for example, Entrepreneur First is a London-based startup accelerator which assists promising UK and Central European tech graduates and those already working in technology firms to design and run their own startup and has helped establish 75 startups in its first four years.
Skills and accessing talent
Cited frequently as the single biggest challenge, or indeed threat, to the individual ecosystems. The headline challenge manifested itself in a number of different ways:
- The need for more technical and higher-level skills in coding, system architecture and programming.
- The lack of entrepreneurial skills with European universities seen to be producing well qualified graduates but lacking the core skills necessary to start and run a business. The result is that while there is a pipeline of good, innovative ideas and propositions for products and services the ability to take these ideas and to commercialise and scale them is often missing.
- A lack of sales and marketing skills was an issue particular to Nordic ecosystems
For a number of stakeholders the presence of a functioning and expanding venture capital market was one of the strongest indicators of an ecosystem’s maturity and strength. Four specific schemes have been cited as good examples that Europe should consider adopting as a whole. These examples were Finland’s Tekes, the UK’s Enterprise Investment Scheme and the Seed Enterprise Investment Scheme, Germany’s High-Tech Gründerfounds and the French Bpifrance.
The Commission will take this analysis and recommendations into account when implementing its Startup and Scaleup initiative outlined in November 2016. In the future the dynamic mapping of Europe’s startup ecosystem will be extended to cover all EU Member States.
Connectivity of ecosystems
The project has revealed about how European cities are connected through international subsidiaries and highlighted below is a matrix of the 5 most-connected cities out of the 20, showing Brussels and Paris as the most connected cities.
Since 2011 The European Commission’s Startup Europe initiative has helped to strengthen the business environment for web and ICT entrepreneurs so that their ideas and business can start and grow. It is part of the Commission’s efforts under the Digital Single Market and Single Market strategies to boost economic growth and create jobs by helping startups. Last year more than 30,000 participants took part in the first Startup Europe Week which reached over 2 million people on social media.
SEC2SV 2017 SCALEUPS CALL IS NOW OPEN!
The time is now. Today Mind the Bridge, in partnership with the European Commission and Startup Europe, announces the opening of the call for the next generation of EU Unicorns to be selected for the third annual SEC2SV (Startup Europe Comes to Silicon Valley), co-organized with EIT Digital, a weeklong mission that brings together the most promising EU scaleups, corporates, investors, and policy makers in September 2017 in Silicon Valley.
The aim of SEC2SV is to welcome the next class of leading European scaleups, i.e. mature startups ready to take off and exploit the opportunities offered by Silicon Valley and the US market. Interested companies from all over Europe should apply via the f6s scaleup form by June 9th 2017, after which a committee of leading US and European investors will select only 15 companies admitted to participate in SEC2SV 2017.
Interested scaleups must meet the following minimum eligibility requirements:
- be a European Union-based company
- have an average annualized growth in employees or turnover greater than 20% per annum over a three-year period (with more than 10 employees at the beginning of the 3 year period)
- desire to expand to the U.S. market or already have a presence there.
- be innovative
The selection will be curated with the support of several Silicon Valley-based partner organizations.
In 2015 and 2016, 28 European companies representing 23 countries were selected to participate in the SEC2SV mission. Cumulatively, these businesses generated more than $100 million in revenue and had over 2,000 employees. Among them were German high-growth companies Shopgate and Entrade, the UK’s Realeyes and Versarien, Spain’s Job and Talent and Kanteron, Mosaicoon and Shopfully from Italy, France’s TVTY, Belgian Awingu among many more.
“SEC2SV brought together amazing scaleups and gave a unique glimpse into the near future. I was honored to be part of this group and I can’t wait to see the next!” commented Andrea Anderheggen, founder and CEO of Shopgate (after an exit with Sofort to Klarna) who participated in the 2015 cohort.
“A Varied program. Meeting at senior level. And very applicable. Great experience!” commented Walter Van Uytven, Founder/Ceo Awingu who participated in the 2016 cohort.
During SEC2SV 2017, scaleups will have the opportunity to present at European Innovation Day (the opening conference, with 60+ speakers and 800+ attendees) and participate in a tailored program involving mentoring, networking, and meetings with key stakeholders – a dedicated 3-day Scaleup Summit that will involve in-depth roundtables with 30+ Silicon Valley experts on the topics of growth, talent, legal, funding, M&A, policy, and communications. The SEC2SV participants will also be invited to exclusive receptions (EU consulates in San Francisco), and meetings at Silicon Valley institutions (Apple, Airbnb, Andreessen and Horowitz, Facebook, GE Digital, Google Ventures Microsoft, Silicon Valley Bank, K&L Gates, to mention some names from prior editions).
In 2015 and 2016, key SEC2SV participants included Estonian President Toomas Hendrik Ilves, European for Budget and Human Resources, Günther H. Oettinger, European Commissioner for Internal Market, Industry, Entrepreneurship and SMEs Elżbieta Bieńkowska, EU commissioner, Draper Fisher Jurvetson Partner Tim Draper, US Presidential Ambassador for Global Entrepreneurship Julie Hanna, Wilson Sonsini Goodrich & Rosati Chairman Larry Sonsini, UK Chief Technology Officer Liam Maxwell, Betsy Masiello, Head of public Policy, Uber, Henry Chesbrough, the Father of Open Innovation among others.
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Search begins to find Europe’s 25 Corporate Startup Stars of 2017
Search begins to find Europe’s 25 Corporate Startup Stars of 2017
March, 22nd – The hunt is on to find Europe’s 25 Corporate Startup Stars of 2017 with nominations opening on Wednesday 22nd March. The ranking, run by advisory firm Mind the Bridge and innovation foundation Nesta, will recognise Europe’s top “startup-friendly” corporates. The scheme takes place under the European Commission’s Startup Europe Partnership initiative.
Judges will award companies that have gone the extra mile to establish mutually-beneficial partnerships with startups – whether through favorable procurement terms, partnerships, accelerators, direct investment, mentoring, intrapreneurship schemes, competitions or other dedicated internal programmes. Nominations will be judged by an expert panel that is chaired by Sherry Coutu, author of The Scale-up Report and angel investor.
In 2016 Cisco was crowned as the most startup friendly corporate in Europe at the Startup Europe Summit in Berlin as a result of its unique approach to partnerships and investments through its Cisco Entrepreneurs in Residence (Cisco EIR) corporate venturing programme. Runners up included Rabobank and Unilever.
Nominations close on Wednesday 12th April 2017 with the 25 stars and final ranking revealed in Autumn. Startups, scale-ups, startup supporting organisations, mentors, and those who have witnessed examples of good corporate-startup collaboration will be asked to nominate the corporates that are offering the most effective support. Self-nominations are not considered, but corporates are encouraged to ask their startup network to nominate them. Last year nominations were crowdsourced in a similar way and over 100 nominations were received.
Andrus Ansip, Vice-President for the Digital Single Market, European Commission, says: “Cooperation between corporates and startups speeds up new business models and innovation. It is a key action to strengthen our ecosystem. Europe’s 25 Corporate Startup Stars is an inspiring European step forward. Celebrate successes, embrace failures; let’s speed up the learning curve on a bigger scale.”
Alberto Onetti, Chairman of Mind the Bridge, comments: “Starting new innovative businesses is not enough. We need European startups that are able to scale up in Europe. Corporations are front and central in this process. They can provide business opportunities as well as capital and exits. SEP 25 Corporate Startup Stars is aimed at showcasing best practices and role model how the corporate-startup collaboration might benefit both sides.”
Chris Haley, Head of Startups and New Technology Research at Nesta, comments: “Collaboration between corporates and startups, if done right, can bring tremendous benefit to both. Startups can access invaluable resources and market insight which can help them scale, whilst for established companies, such collaborations offer an important mode of innovation – as well as subtler benefits like cultural change. However, it is hard to get it right. We believe that the organisations doing this well should be recognised as trailblazers, and hope that they inspire others to follow suit.”
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