There’s Lots to Overcome This year’s report is another strong indication of the upward trend in European tech. There is much to celebrate, but the report also highlights some obvious challenges we need to address if we are to continue the progress of the past decade. Prioritise diversity and Europe’s diversity and inclusion in any meaningful way in recent years. inclusion challenges are stark. Just 4% of VC The result: Europe has lost untold funds go to female or mixed gender talent and value due to these issues. teams in Europe. The level of funding to This is not somebody else’s problem. It other underrepresented groups is even is our problem. Why are we not taking lower. Those numbers have not budged more positive action? Mobilise hidden talent pools There are at least 15 cities across most cases. By contrast, Stockholm, Europe that have more than 50,000 which has around 80,000 professional professional developers but have seen developers, has attracted almost $5B less than $1B in total capital investment over that period. How can we get all of since 2013 and less than $500M in those cities to punch at that level? 10x pension fund Pension funds have committed just European VC is now competitive with commitments to European $2.4B to European VCs in aggregate US VC and European private equity. VC since 2013, equating to less than $500M How can we educate and create the per year. This equates to just 0.01% of right incentives and allocation models total European pension fund assets to entice more pension funds to under management of around $4 support a European VC ecosystem? trillion. All of that despite the fact that Build density through Europe’s ecosystem is unique in its flows across borders and 28% of interconnectivity geographic diversity. In response to Europe’s founders and employees have this, the region’s interconnected hubs also moved across hubs. How can we are achieving density in a uniquely strengthen this interconnectivity even European way. More than a third of all further? investments by European VC already Lose the inferiority complex There is no better proof that European never deviated from its long-term vision tech companies can compete on the despite untold distractions. And they global stage than Spotify. It is hard to still ended up as the global category think of a company anywhere that has leader and a trusted consumer brand had to fight fiercer competition from the world over. What can we learn from the world’s largest tech companies and Daniel and his team? 139 In Partnership with & www.thestateofeuropeantech.com