It’s downright amazing how the European tech industry has grown over the years. As of right now, it has 60 unicorn startups and counting. The number has doubled over the span of the last three years. But what lies at the core of their success?
The Right Environment to Grow
It takes effort to plant a tree. The analogy perfectly describes what’s necessary to take any startup from point A to point B. No matter the funding or the fantastic people behind it, everyone starts at square one in the world of entrepreneurship. Sure enough, a seedling can become a mighty tree as time goes on, but in the beginning, it will take some tender love and care to get it there.
Translate this into the hustle and bustle of startups, and it becomes clear that you’re going to need not only a great team but also the right mindset and financial backing, along with an environment in which a seed of entrepreneurship can flourish and grow. Many startups are finding that a good team, right mindset, financial backing, and supportive environment is all they need to prosper in Europe, as long as their products and services are up to par.
Europe Has Great Talent
The latest statistics suggest Europe prides itself by producing a sizable number of educated individuals across a wide variety of different fields. Even though it’s smaller than the US, it produces roughly two times more sought-after educated professionals.
In addition to that, the sheer number of STEM graduates widens the pool of possible talent a startup could tap into. Need a Java coder who’s proficient in using a specific library you’ll need to execute the project? Chances are you’ll find one here. Need a machine learning and big data specialist? One could be waiting right around the corner.
At the same time, it won’t take long to teach someone the proper cybersecurity fundamentals around here as the young generations tend to already be familiar with the subject. Most of the tech-savvy population knows the importance and the benefits of a VPN (check this trusted vpn software), antivirus software, and solutions for protecting sensitive company data, all of which a startup will find more than useful. Startups, in general, tend to be the desired prey, as newly opened businesses often do not yet have all the security tools in place. That is why it is essential to hire employees that are knowledgeable in cybersecurity. This way, you can be reassured that your employees always use antivirus software and a VPN for their computers, phones, and other gadgets.
Either way, do keep in mind that employers will have to pay higher wages in most European countries (after all, the standard of living is quite high). But this will, in turn, attract the best talent. The great thing is, if you combine a stimulating environment with pay that’s high enough, you’re left with a happy employee that won’t be looking for greener pastures any time soon.
An Environment That Demands Excellence
Upon encountering a seal that says, “made in Germany”, most of us tend to foster high expectations that the product will be of great quality. And, for the most part, that would indeed be the correct assumption to make. By extension, a similar thing holds true for central Europe; people who work there produce great products and demand suitable compensation in return.
Case in point, European businesses approach matters with a global mindset. Around these parts, the spirit of ambition is alive and well, and the people are inclined to over-deliver. In other words, they tend to take pride in the quality of their work; when push comes to shove, this is what they believe will propel them over the competition.
To top it off, the under-funded underdogs of the European startup scene are motivated to push the envelope even more as they claw their way to the top. This alone can be the sole differentiating factor that tips the scales in the end.
A Fostering Community
It’s easier to find success if people are willing to mentor you. In Europe, it’s not uncommon to see high-ranking company officers start their own companies after having absorbed the knowledge from their previous workplace. As it turns out, this approach is much faster and more efficient than having to learn it all on your own.
Apart from that, in Europe, you’re bound to run into like-minded entrepreneurial individuals around every corner. For startups, not only is this healthy in terms of knowledge gained; the value also lies in establishing and nurturing supportive relationships that will encourage you on your path, whatever field or industry you’re in.
You see, a mentor can be anyone, a peer or colleague, or even a seeming competitor you’ve befriended along the way.
Looking at the span of the last 5 years, the money investments flowing into European startups have more than doubled. In 2016, they received around $16bn in funding, while in 2020, the number stood at $41bn.
In the past, however, this was not the case. In essence, this means that startups were forced to learn how to work with limited funding. As such, they’ve become masters at making the most out of whatever is available and attained complete control over how they choose to spend their resources. And this is a valuable skill regardless of what kind of startup you’re running.
Another thing to keep in mind is that European startups are very attractive to investors because of their valuation. In concrete terms, for the same amount of capital, an investor can get a larger slice of the shareholder pie in Europe compared to what they would get in the US.
All this combined makes the narrative clear; we live in the golden era for European tech. As the survival rate of European tech startups keeps improving year after year, things are only going to get better and better.