Dealroom-欧洲能成为最具企业家精神的大陆吗？（英文）-2020.10-45页_6mb

Summary of "Can Europe Be the Most Entrepreneurial Continent?"

Core Content

This document explores the current state and future potential of entrepreneurship in Europe, focusing on venture capital investment, startup growth, and the ecosystem's development. It compares Europe's entrepreneurial landscape with that of the United States and highlights the need for strategic investment and policy support to enhance Europe's position as a leading entrepreneurial region.

Main Points

1. Journey So Far: Europe Ditching Its Old Image

• Europe is shifting from its traditional image and becoming more entrepreneurial.
• Venture capital investment in Europe has increased significantly since 2005.
• Europe has created 205 unicorns, many of which are venture-backed.
• European startups have raised substantial amounts of capital, with a notable share of global seed-stage investments.

2. Present: Entrepreneurship, Jobs, Skills, Innovation

• Startups are a major contributor to job creation and are the fastest-growing job engine.
• Europe has a growing number of deep tech startups, which are seen as a key driver of future innovation.
• Despite progress, Europe still lags behind the US and Israel in terms of venture capital investment per capita.
• There is a trend of AI professors leaving academia for Big Tech companies, indicating a brain drain issue.

3. Future: What's Needed Most in the Next Five Years

• European startups need significantly more capital than what is currently being invested.
• Government support and policy incentives are crucial for attracting and retaining talent and fostering innovation.
• Additional investor groups, including sovereign wealth funds and corporations, play a key role in supporting European startups.
• Europe has various programs and institutions in place to provide financial and non-financial support to startups.

Key Information

Venture Capital Investment

• Since 1995, $1.2 trillion has been invested in venture capital globally, with $10 trillion in value from VC-backed companies.
• Europe has raised $1.2 trillion in VC investment since 1995, but the value of VC-backed companies in Europe is still lower than in the US.
• In 2019-2020, 38% of global seed-stage capital was raised by European startups.

Unicorns and Deep Tech

• Europe has created 205 unicorns, many of which are venture-backed.
• European deep tech companies have a combined value of $150 billion.
• Examples of successful European deep tech startups include Graphcore, Roivant Sciences, DeepMind, Lillium, Babylon Health, Celonis, Biontech, Collabra, Dataiku, and Blue Prism.

Government and Institutional Support

• Europe has various institutions and programs supporting startups, such as:
  • Fund of Funds: Bpifrance (€6.5B), EIF (€12B), EIC Accelerator (€3.0B)
  • Grants: Innovate UK, Bpifrance, BMWi EXIST, ZIM, Vinnova, Horizon Europe
  • Equity co-investing: Bpifrance, KfW, HTGF, Coparion, Almi, InvestNL, EIB
  • Debt co-investing: KfW Group ERP Start-up Loans, InvestNL
  • R&D tax credits: UK, France, Sweden, EU, Israel
  • Investor tax relief: UK (EIS/SEIS) provides £2bn in tax relief

Comparison with the US

• The US spends more on IT and corporate R&D, with Big Tech companies dominating these areas.
• The US has a more developed venture capital ecosystem, with significant support for startups through programs like the Small Business Administration (SBA) and SBIC.

Pandemic Impact

• European venture capital seems to have been less affected by the pandemic.
• Companies like Klarna, Northvolt, Revolut, Cazoo, and Mirakl have shown resilience and continued growth.

Investment Trends

• Venture capital investment in Europe has grown to €618 billion in combined value.
• The share of global venture capital investment in Europe is stable at around 15%.
• European VCs are raising record amounts of new funds, with notable examples including:
  • Speedinvest raised €190M in February 2020
  • Index Ventures raised $2B in April 2020
  • Highland Europe raised €463M in June 2018

Country-Specific Support

• France has been the most decisive in responding to the pandemic with €5.2B in support.
• Germany and Sweden have also implemented significant support measures.
• The UK has a well-established support system, including BBB, Innovate UK, and EIS.
• The EU has multiple programs, including EIF, EIB, and Horizon Europe, but the per capita funding is still lower than in the US and Israel.

Conclusion

Europe has made significant strides in fostering entrepreneurship, with a growing number of startups and unicorns, and a robust venture capital ecosystem. However, to become the most entrepreneurial continent, Europe needs to increase investment, improve support mechanisms, and encourage a more balanced approach between deep tech and commercial applications. The current initiatives by governments and institutions are promising, but more needs to be done to close the gap with the US and Israel in terms of innovation and investment.