The EU Commission initiated “EU Startup Monitor” has been launched in Graz, Austria during the annual SME Assembly today and presents comparable data for 21 startup ecosystems in Europe. Startup hubs are growing everywhere and with countless initiatives from both governmental and private players it is a great time to take a closer look at the current state of the European Startup Ecosystem.
The EU Startup Monitor shows that startups are being created all over Europe, with the biggest geographical hubs in London, Berlin, Paris, Copenhagen and Lisbon. The average founder is male (82.8%), holds a university degree (84.8%) and was 35 years old when founding the startup. Startups are commonly founded in teams (on average 2.7 co-founders). The startups can be found in multiple sectors varying from traditional IT/software development (19.1%) to trending green technologies (4.0%). They offer online solutions (only 0.7% offer offline solutions), generate revenues mainly or entirely through business to business markets (71.8%) and on average employ 12.8 people. The results showed a clear ambition to further grow both, the number of employees (7.5 planned hires within the next 12 months) and markets operated in (88% are planning (further) internationalisation). Locations for growth are within the Eurozone (85.0%) and outside (40.0%), with the United States of America and its famous Silicon Valley in the state of California still in the lead (43.4%) as desired spots for expansion but increasing interest in the Asian markets (25.8%).
Concerns about profitability (86.2%) and cashflow (72.3%), which most startups consider to be their biggest challenges, are typically also answered by expansion. Moving to another market means moving towards a bigger base of potential customers, a larger pool of people for recruiting, and often new capital markets to approach for further funding. Another way to overcome challenges and to access new opportunities is through working together as it was reported that 71.1% already engage in cooperations with large corporations (Fortune 500 companies, and/or SMEs). It is to be noted that cooperations between startups and other SMEs are three times as common as cooperation between startups and large corporates (Fortune 500 companies) and for some startup ecosystems (the female share of founders is less than 10.0% (Belgium 9.9%, Czech Republic 9.3, Portugal 5.1%).
“The European Commission has initiated the EU Startup Monitor as a primary research project to provide the necessary evidence for gauging the success of its policies and to be able to adjust its activities if needed. Furthermore, the project intends to showcase the current development of startup ecosystems.” Kristin Schreiber, COSME.
The EU Startup Monitor is the only startup study purely based on primary inputs of active European founders and with 21 countries the most
comprehensive study of the European Startup Ecosystem. It is produced based on an online survey targeted at European Startup Founders
(or senior management executives e.g. CEO, CFO, CTO, etc.) of active startups in all stages and sectors and supported by national startup
ecosystem stakeholders, such as associations, networks and events as well as the European Commission SME Envoys. “Without the support of
the European Startup Ecosystem family, we would never be able to showcase data that is both authentic and meaningful for public and private
interest groups” Lisa Steigertahl, Researcher for the EU Startup Monitor. “Startup Data are very valuable, but difficult to get,
particularly on a European scale. This I why we are particularly happy to work with the European Commission on this snapshot of the
European startup landscape.” Prof. René Mauer co-researcher and research director of the Jean-Baptiste Say Institute for Entrepreneurship
at ESCP Europe, adds.
Contact: Lisa Steigertahl
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