Europe’s tech scene is maturing rapidly and is flourishing like never before. This is evident by the steady increase in the number of tech startups and funds being pumped into these companies. Europe is a great diversity of over 40 countries with varying cultures and regulations.
This scenario has both advantages and disadvantages for startups in the ecosystem. Though these barriers might make it tough for startups to expand to other countries within Europe, this diversity has contributed to great innovation and potential.
In the current era, Europe is embracing entrepreneurship and there are many advantages associated with the same. The continent is home to top academic and research institutions, a talented workforce, highly talented expats, and government support. This makes investors come forward and invest in European startups. Eventually, there is quick growth in the economy and an immense number of job opportunities.
Also, many companies are focusing on becoming unicorns and this requires high skill, capital, and talent. If there are many unicorns in a region, then it is clear that the business ecosystem over there has these elements in abundance. A Dealroom report ranks the top 7 European countries that are thriving tech ecosystems based on the number of unicorns in these countries, the value created by these firms, and the capital investment achieved by them.
Despite the complexities of Brexit, United Kingdom dominates the tech ecosystem. With London being one of the main cities, the UK is the headquarters of a plethora of tech unicorns. Acoording to the report, which considers the total value of unicorn and potential future unicorns from 2013 to 2019 so far, United Kingdom is valued at €210 billion now. This has been possible with potential unicorns such as Deliveroo raising massive investments. Notably, this was €318 billion back in 2013, showing that there has been a decline.
Germany is a great country for tech startups and is home for hundreds of them, especially circulated in its capital Berlin. Post-Brexit, it is a common scenario to see a surge in the number of startups in Germany after Britain leaving the EU. However, it retains the second spot in this list with €63 billion value right now. There are many reasons for the country to be a great tech startup destination. These include the simpler process of obtaining an international work visa, the cultural diversity of startup founders, and more.
The tech ecosystem in Sweden is quite successful and popular names such as Spotify and Klarna say it aloud. This country is making waves in the tech startup ecosystem across the world. As per the report, Sweden is valued at €48 billion in 2019 so far and this is heavily driven by Spotify. Furthermore, the government is eyeing to lower the corporation tax by 2021 to boost business activity in the country.
The Netherlands is catching the eyes of investors as the country is home to numerous accelerators hosting interesting programs targeted at startups. The Dutch tech startup ecosystem is driven by expertise and technical knowledge from experts and early-stage funding. In the Netherlands, there are tech startup hubs in Amsterdam, Rotterdam, Delft, Utrecht, and Eindhoven. Collectively, the Netherlands has is in the fourth place in Europe with €44 billion in terms of value, which is mostly led by Adyen.
France is one of the recently emerging tech startup hubs in Europe. It’s capital Paris is the host of one of the largest startup campuses, Station F. Startups such as BlaBlaCar show that the country is emerging successful in the tech startup landscape in Europe. And, this growth is fueled by interesting government incentives targeted at the tech sector. Currently, France is at the fifth spot in Europe with a value of €24 billion.
In Spain, Madrid and Barcelona are notable spots in the tech startup landscape. Barcelona is considered one of the smartest cities in the world and has successful tech startups across industries. Spain occupies the sixth spot in Europe by ecosystem value since 2013 with €11 billion. The country has advantages such as a good educational system resulting in highly talented entrepreneurs boosting the startup scenario.
Finland is among the list of European countries with high value in the tech startup ecosystem. The country is home to companies such as Rovio that has brought a transformation in the world of gaming. Finland is home to several highly successful tech companies and has received substantial foreign investment. The report lists Finland at the seventh position with €11 billion value in 2019 so far.
Here’s an infographic for simpler understanding.
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