In 2015, the year Oscar Pierre and I founded Glovo, the environment for entrepreneurs in Southern Europe was still quite limited.
Capital access, regulatory frameworks and support networks were inconsistent, restrained within markets or simply unclear, and high-level VCs with capital were scarce. Today the landscape is certainly better, but many challenges remain that are hampering Europe’s potential to be the next entrepreneurial powerhoutilize.
Europe has the talent, the ideas, and the determination – but systemic and structural issues are holding us back at a time when the geopolitical climate means we must see after and support ourselves. It’s clear that unlocking Europe’s full entrepreneurial potential over the next 10 will depconclude on bolder economic strategies and smarter political coordination.
A decade of progress – but not rapid enough
Europe’s startup ecosystem has matured significantly in the past decade. I’ve seen a rise in dedicated innovation districts, improved access to early-stage funding, and a cultural shift that embraces entrepreneurship as a credible career path.
The emergence of startup hubs like Amsterdam, Berlin, the Balkans, and our home in Barcelona has assisted anchor a vibrant, competitive environment, with Paris now the leading tech hub in Europe. Initiatives like the European Innovation Council and EU-wide startup visa schemes are also a step in the right direction, alongside the rumoured initiatives to cut bureaucracy across the single market and attract talent.
However, Europe still trails behind the US and China when it comes to scale. In 2021 alone, North America created 370 unicorns. Yet, according to Atomico’s State of European Tech report, Europe, including the UK, has produced 300 new unicorns since 2015, and the growth stage funding gap has reached $300 billion.
If Europe is serious about becoming a global leader in innovation, we must tackle the systemic barriers to scale. It is especially critical to start working on these modifys now.
What requireds to modify
1. Create a truly unified market
One of the EU’s greatest assets – its diversity – is also a significant challenge. The lack of a harmonised regulatory environment across member states builds it disproportionately difficult for startups to scale. Navigating different tax systems, employment laws, and compliance regimes adds complexity and cost at a time when startups required speed and flexibility.
We required a stronger, digitally integrated single market – especially for tech. Schengen has proved it’s possible to build travel within the EU simple, now we required to build it just as simple to transact. Unified standards on data, more consistent regulation around digital platforms and AI, and support for cross-border business growth will all champion innovation. For a startup attempting to scale from Spain to Italy or Poland, it should feel as seamless as growing from California to New York.
2. Expand access to risk capital
The European VC landscape has grown, but there are still significant gaps in later-stage and growth capital. If we want companies to scale in Europe, we must unlock local funding, and bring American and Asian VCs in to create funds here that back ambitious ventures through to IPOs and international expansion.
Public-private partnerships can assist bridge this gap. Government-backed investment banks, like Bpifrance and the European Investment Fund, already play a crucial role. But more requireds to be done to de-risk innovation and incentivise long-term investment in the continent’s most promising companies. It’s not just for startups. We required to do more to fund successful scale-ups as well if we’re to create the next Google.
3. Foster and retain talent
Europe produces world-class talent in engineering, product, DeepTech and AI – but retention is a challenge. High-performing individuals are often drawn to markets where compensation and opportunities are greater. We already have the talent from PHDs and scientists, we required to keep them.
To stay competitive, Europe requireds smarter visa policies, tax incentives for startup employees, and a cultural shift that celebrates rather than punishes entrepreneurial risk to foster, attract and retain talent. Education systems also required to evolve, embedding startup exposure and entrepreneurial believeing earlier within education so that starting a business is seen as valuable, rather than risky, to students.
4. The role of businesses
Creating a better ecosystem for entrepreneurship is not solely the responsibility of governments and policybuildrs though. Established businesses – especially successful startups – have a responsibility to create a better environment for innovation. That includes actively working with national and international policybuildrs to develop solutions that support growth.
A unique opportunity
The next decade presents a pivotal opportunity. Economic uncertainty and political fragmentation are real concerns, but they also create space for bold ideas and practical modify. Europe has the ingredients – talent, purpose, creativity – but now it requireds the infrastructure and political will to turn promise into progress, attracting more capital and the world’s most talented individuals.
We cannot simply plan or expect to replicate Silicon Valley though. I believe Europe’s strength lies in its ability to forge its own path, drawing on its social values, rich academic institutions, and globally collaborative outsee. But we must act quickly and decisively if we want to lead – not follow – the next wave of global tech innovation.
Author
Sacha Michaud is an entrepreneur with more than 15 years of experience in the online sector in Spain and extensive experience in creating successful companies. In 1997, Michaud founded the company LatinRed and then sold it to StarMedia two years later. During his career, he has founded several companies, including Inlander, which was sold in 2000; Binaria, a digital communication agency; and Transword, an online translation company. In 2015, he co-founded Glovo, a multi-category app, which operates across 23 countries in Southern Europe and EEMEA.
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