“Do you still doubt Europe?”. How the EU came to gain ground in an area where the US 'has a decade ahead'
For many years, European founders of start-ups moved to Silicon Valley because they were convinced that this was the only way they could achieve success, writes the publication Tech Crunch. Things are changing, however.
Slush, an event that took place in Helsinki, brought together the most important start-up founders and investors in Europe for two days.
And the message sent was clear at the entrance, displayed on a banner, writes the Tech Crunch publication: “Still doubting Europe? Go to HEL” (play on words in English, from go to hell – go to hell, on the call sign of Helsinki airport, where the event took place).
The change comes after Silicon Valley companies argued for years that a focus on innovation required start-ups and investors to retreat to San Francisco.
But, the publication notes, those present at the Helsinki event now say the obstacles that have held Europe back from reaching its true potential have been resolved.
Americans are also now more interested in the European market
Investors said the idea that US investors are not interested in the European market is outdated. One of them clearly stated that there is more American capital in the European market than five years ago.
And while the temptation to head to the United States persists, European companies are finding success by resisting pressure from American investors to move to Silicon Valley, the source said.
The publication also gave exact examples.
The founder of vibe-coding platform Lovable, Anton Osika, said the rapid growth of the company, which achieved $200,000,000 in revenue in a single year after launch, was due to the startup staying in Europe.
Taavet Hinrikus, who invested in Skype, founded in Estonia, said that the European market is a decade behind the United States, but startups have entered the mainstream of the business environment in a much clearer way.
Success stories from Europe that have convinced other companies
Another investor said that the share of startups in the GDP of European countries is increasing, and the trend will continue.
The number of European success stories, such as Spotify or Klarna, have boosted the profile of the old continent, giving confidence to company founders not to leave the European market prematurely to go to Silicon Valley.
In addition, they gave employees the skills and financial security to pursue their own ideas.
How the EU helps
Regulatory institutions have recently begun to ease the efforts of startups, writes Tech Crunch,
The EU is moving towards regulatory changes that would allow startups, from next year, to register simultaneously in all member countries. Such decisions also have their challenges, but they represent a step forward.
Obstacles remain, of course. European companies are less inclined than American ones to experiment with and implement technology created by startups.
“But the general tone at the Slush conference was upbeat. Europe seems ready to assert itself, even if it took longer,” the publication added.
