WHAT DOES IT TAKE? EUROPE STEPPING UP TO GLOBAL TECH LEADERSHIP
Klaus Hommels Roxanne Varza Gerard de Graaf Megumi Ikeda Saul Klein Peteris Zilgalvis Founder Director Director Partner Co-founder Head of Unit
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Page / 5 EuropeanStartups.co PLATFORM LAUNCH Alignment between public & private sector can be Europe’s superpower.
Page / 6 EuropeanStartups.co PLATFORM LAUNCH Save the dates.
Friday 19 June Friday 26 June 12:00 CET (1.5hrs) 12:00 CET (to be confirmed)
How can Europe step up to Product tour & workshop: global tech leadership? data-driven policy making
Panelists: Webinar Klaus Hommels, Saul Klein, Roxanne Varza, Megumi Ikeda Who’s it for? Policy makers, broader tech community, Who’s it for? data wonks Policy makers and broader tech community
Presented by Sifted & Dealroom Presented by Sifted & Dealroom
Page / 7 EuropeanStartups.co NAVIGATING CRISIS GOV’T ROLE LONG TERM CAN EUROPE COMPETE? HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP? Three major trends unfolding.
✔ Digital adoption has accelerated
✔ Remote working has levelled the playing field in the war for talent
✔ Technological sovereignty has become a hot topic
Page / 9 EuropeanStartups.co NAVIGATING CRISIS HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP? Survey in partnership with 32 venture capital firms.
Page / 11 EuropeanStartups.co HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?
Survey results: a teaser.
40% of startups expects 2020 revenues to be at least 25% under plans
43% of startups have frozen hiring, another 28% have slowed hiring
Many turning to (Government-backed) bank loans and applying for grants
“Working from anywhere" is here to stay
And much more… full results will be released soon
Source: survey by LocalGlobe, Latitude, Dealroom and Sifted in partnership with 32 VCs.
Page / 12 EuropeanStartups.co HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?
France has responded most decisively.
Country Covid-19 response Amount per startup with >€1M funding
France €5.2B €3.0M per Bpifrance Guarantees, accelerated tax credits, direct loans 1,700+ startups
Germany €2B €2.0M per BMWi / KfW / regional banks Fund-of-funds, direct loans 1,000+ startups
UK £1.25B €0.5M per BBB, Innovate UK, EIS Co-investing and direct loans 2,700+ startups
Sweden SEK3B €0.5M per Saminvest, Almo, Vinnova Direct investing, guarantees, tax credits 600+ startups
Netherlands €100M €0.2M per RVO, BOM, InvestNL Direct loans 450+ startups
EU €300M €40K per EIF, EIB, EIC, Horizon Europe Fund-of-funds triggering investments of up to €1.2B 8,000+ startups
Israel $180M €0.2M per Israel Innovation Authority Direct loans 900+ startups
USA -- -- Small Business Admin
Note: preliminary Dealroom analysis.
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France is also leading by VC investment growth so far this year.
Cumulative venture capital investment amount from January to May
2019 2020 % change Jan-May Jan-May
France $2.3B $2.7B
Sweden $0.8B $0.9B
United Kingdom $5.7B $5.3B
United States $61B $52B
Netherlands $0.4B $0.3B
Germany $2.8B $2.0B
Israel $2.2B $1.6B
Page / 14 EuropeanStartups.co GOVERNMENT ROLE LONG TERM HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?
European VC has become less dependent on government funding.
VC funds raised in Europe by source
» Funding from private institutions & individuals
20% 27% 26% 19% 34% 35% 22% 33% 37% 35% » Government funding € 1.1B € 1.8B € 1.4B € 1.6B € 1.4B € 1.5B € 2.4B € 2.6B € 2.5B € 3.0B
Source: InvestEurope.
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Europe has a lot of catching up to do.
Salesforce ($160B)
Netflix ($180B) Tesla ($160B)
Facebook ($650B) » United States Amazon ($1.2T) Google ($1.0T) €1.2T invested since 1995 €3.6T market cap (top 10)
European startup ecosystem picking up steam » Asia €400B invested since 1995 €1.5T market cap (top 10)
5% 16% » Europe €190B invested since 1995 4% €0.3T market cap (top 10)
Global venture capital invested
Page / 17 EuropeanStartups.co HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?
Since 2005, Europe has shown it can create big tech companies too.
2x $242B
$118B
(1)
Valuation as 16th of June 2020. 1. Europe’s most valuable VC backed starts founded since 2005 and the top most valuable USA VC backed companies from the same period.
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Europe is very dependent on Silicon Valley tech. Does technical sovereignty matter?
Market share in core domains
Source: Benedict Evans’ Jan 2020 presentation Standing on the Shoulders of Giants (data from companies and Zenith). Source for B2B: “In-depth: B2B e-Commerce 2019” by ecommercedb.com
Page / 19 EuropeanStartups.co HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP? We can’t force a “European Google”. But we can make Europe the best home for the next super founder like Sergey Brin or Elon Musk.
Most valuable U.S. tech companies founded by immigrants
$982B
55% of America's billion-dollar startups have an immigrant founder (Forbes)
Could these founders have become as successful anywhere else than the USA?
If Europe can create several decacorns, it can create $100B+ companies too
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Europe is a global powerhouse in frontier tech.
Research impact: quality & influence measured as field-weighted citation impact
Source: UK BEIS report on International Comparison of the UK Research Base, 2019; Scopus, via Rani Saad. Note: field-weighted citation impact (FWCI) is a measure of how much impact a set of publications have had. It compares the total citations received by a researcher’s publications to the average number of citations received by all other similar publications from the same research field in the same year.
Page / 21 EuropeanStartups.co HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP? Panel: how can Europe step up to global tech leadership?
Klaus Hommels Roxanne Varza Gerard de Graaf Megumi Ikeda Saul Klein Peteris Zilgalvis Founder Director Director Partner Co-founder Head of Unit
Friday 19TH June 12pm CEST / 11am BST
Introduction by Yoram Wijngaarde, Dealroom.co Moderated by Michael Stothard, Sifted.eu
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