According to a research project conducted by Dealroom and Dealflow.eu, around one in ten European startups that have received VC investment are also supported by an EU equity funding grant. While the full report is expected to be published later this year, the authors presented some preliminary figures in Warsaw last week.
In financial terms, the 10% share means that EU-backed start-ups have raised €70 billion in VC funding since 2010, which is around 11% of all funding in Europe (in this case the EU, Switzerland, Norway, the United Kingdom and Israel). ). With a total company value of around 400 billion euros (excluding Arm), they now account for 13% of the company value for the entire continent.
As expected, most EU-funded start-ups operate in what the report calls physical technology, i.e. %.
The report's preliminary findings also show that EU support increases the likelihood of success of further rounds of financing. From Series A to Series D, EU-funded physical technology startups have a “close rate” that is 1-3 percentage points higher than the rest of the industry.
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Marcin Hejka, co-founder and general partner of OTB Ventures, spoke at the presentation event on the topic of the fragmentation of the European technology ecosystem, pointing out that it is not necessarily about regulation or the size of the single market.
“The problem is at the level of technology consumption,” he said. “Europe as a continent is a late adopter, especially on the corporate side. […] But if the willingness is there [at a corporate] To buy from a startup, they look for startups from their own countries – and that's a problem.
“If you are a German startup, it is no problem for you to sell to German companies. But if you are a startup from Romania, Slovakia or any other country [smaller] Country, it will be an arduous effort.”
In theory, EU funding mechanisms should solve this problem, among others, but most EU-funded startups are still based in Western Europe, with France, Germany and the UK topping the list.
The full report will be available in December – you can pre-download it now.
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