2018 Mythbusting Europe is irrelevant as its share of public tech market cap versus the US and China is small Busted: If you choose to look at all the data, then yes, the market cap of public European tech companies make up just 8% compared to the market caps of US and Chinese tech companies. However, given that most the US companies’ market cap is Busted: If you choose to look at all the data, then yes, the market cap of public European tech companies make up just 8% compared to the market caps of US and Chinese tech companies. However, given that most the US taken up by just five companies (Alphabet, Amazon, Apple, Facebook and Microsoft) companies’ market cap is taken up by just ve companies (Alphabet, Amazon, Apple, Facebook and Microsoft) and and most of them are over 20 years old, it is much better to look at the market caps most of them are over 20 years old, it is much better to look at the market caps of those public tech companies of those public tech companies founded after 2006 if you want to understand the founded after 2006 if you want to understand the direction of future travel. Once you do that, then Europe begins direction of future travel. Once you do that, then Europe begins to punch a lot harder. to punch a lot harder. Share of total market cap of public Internet & 68% Software companies by region p 60 a c t LEGEND e 47% k r All public tech companies ma l a t 40 All public tech companies founded since 2006 o t 33% f o % 23% 21% 20 8% 0 China Europe US Note: Share of total public Internet & software market cap by region and cohort. % distribution based on share of total value of US, China and Europe. Total may not sum to 100% due to rounding. S&P Global Market Intelligence All the best European founders want to move to Silicon Valley It's often said that European founders 'all want to move to the Valley'. This is not what the data shows. Only 6% of The overwhelming majority of European founders do European founders would choose to found and build their company in Silicon Valley if given the chance to start not feel the allure of moving to Silicon Valley over again. If you were to start over, where would you I would stay where we are now 63.9% choose to found and build your company? A different European city 19.3% LEGEND % of founders Silicon Valley/Bay Area 6.2% Somewhere else (e.g. Asia) 3.7% Other (please specify) 3.6% A different US city (not Silicon Valley/Bay 3.0% Area) 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 % of respondents Note: Founder respondents only 143 In Partnership with & www.thestateofeuropeantech.com