Do you believe the next generation of tech giants will be European?

Updated: Sep 7, 2021

Scale-up Europe does, and we agree with that.

We believe that now, more than ever, is the time to make a change in the direction of Europe. Especially now, in these Covid times, it has bluntly shown how essential digitalization and smooth online information flows are.

It pushed us from the comfort zone, where the majority of traditional companies were recent. Instead of working at the office, sticking to proven standards and scale on the existing products, we had to adapt and be efficient.

Covid experience showed us how crucial it is to be agile, creative, and swift in unexpected and significant changes. It also showed Europe vulnerability and dependence on the U.S. and China technology solutions and platforms.

What is Scale-up Europe?

It is an initiative started by French President Emmanuel Macron to accelerate the rise of global tech leaders born in Europe, building on four key drivers: talent, investment, startup-corporate collaboration, and deep tech.

It is backed up by a diverse group of 200 startup founders, investors, associations and government members who have supported a manifesto and a set of recommendations to create the next wave of tech giants in Europe.

Companies, investors and associations that signed the manifesto include Alan, Axel Springer, Bpifrance, Darktrace, Deutsche Startups, Doctolib, Eurazeo, Flixbus, France Digitale, Glovo, La French Tech

, N26, OVHcloud, Shift Technology, Stripe, UiPath and Wise.

Scale Up Europe is a call to join forces around startups: to reinforce Europe's sovereignty, develop the prosperity of our economies and societies, and achieve the objectives of social cohesion and climate transition that are at the heart of the European project.

The initiative's target is that Europe can reach the next level and have set an ambition for the continent to become home to 10 technology companies, each valued at more than €100 billion by 2030.

Which are those four key drivers?

Investment & funds 🡪 In particular, the group thinks Europe is still lagging for late-stage investments. The most considerable V.C. funds aren't as significant as the biggest V.C. funds in the U.S. or China.

It also highlights some discrepancies with stock option schemes. Today's report states once again that some governments should adopt more favourable rules with stock options.

Deep tech 🡪 The third topic revolves around deep tech startups. According to the report, Europe isn't doing enough to foster more deep tech startups and investors. Recommendations include standardizing patent transfer frameworks. Those schemes are essential if you want to turn a research project into a company.

Startup-corporate collaboration 🡪 Scale-Up Europe then highlights some recommendations to improve relationships between big corporations and startups. These are mostly tax breaks, R&D tax benefits and other fiscal incentives.

In conclusion, scaling European startups isn't a gold rush. Instead, it's a long process that requires continuous investments that start from the bottom of the tech stack and moves upward. If Europe wants to catch up with the U.S. and China, Europe must build on their strengths and support home-grown innovation. Thus, Scale-Up Europe is another crucial step towards achieving European digital sovereignty. One crucial brick in building this goal is also the Next Round 2021, for which you can apply here: APPLY NOW

If you want to know more about the Scale-up Europe manifesto, check the link here:

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