Europe is quickly becoming a hotbed for innovation. The continent’s startup community is growing at an extremely fast pace, thanks to several factors, ranging from the rise of digital technology in the business world to new government-backed programs that support startups. With more money flowing into European startups and more funding options available than ever before, it’s no wonder entrepreneurs are flocking to the area.
It might be surprising to some, but Europe is home to several of today’s most promising startups in the region, doubling in the last decade. With this growth in startup activity, many new problems have arisen with which European startups are striving to solve.
The advent of covid has enabled the startup ecosystem in Europe to solve old problems in a new and innovative way and to use digital technology to address them.
We are at a time when it’s probably the most opportune time for an entrepreneur to start a business, for a few different reasons & undoubtedly it is true that we are seeing so many opportunities that have intensified in 2021 and it will exceed in the year 2022.
How is Europe changing the World?
- There were 30 times more Zoom calls in the year 2021.
- Within a year, e-commerce has accelerated five to ten times.
- Ninety percent of all students in the world today have some level of experience with the internet.
- Opportunities are plentiful across all sectors and across all regions of the globe.
- Low-interest rates prevail. Capital is eagerly pouring into new ventures.
In addition, SPACs [special-purpose acquisition companies] also gained popularity in 2020. There has been a surge in interest, but it isn’t new. As a result, investors are more confident about investing. This is a viable exit option for entrepreneurs. This completes one part of the cycle. The options for capital, funding and exit make it an appealing scenario.
The seeds of innovative ideas are being sown :
- AI & Machine Learning are making a difference :
Many AI startups are operating in Europe, where technology is at the forefront of their work. In today’s world, one in 12 businesses incorporates AI and Machine Learning into their value proposition, regardless of whether it’s recruitment, pharma or real estate. AI is increasingly becoming a lucrative business for both Big Tech and early start-ups in the EU.
- Sustainable entrepreneurship: Green startups are on the rise:
A recent report from the World Economic Forum (WEF) outlines sustainable business opportunities worth $10 trillion. Identifying three key market areas that could yield tremendous opportunities and millions of jobs, the WEF urges businesses to move away from the common “extract, use, dispose” model.
- The advent of medical imaging startups intends to revolutionize the European diagnostic imaging market:
According to estimates, the European diagnostic imaging market grew in 2020, and is expected to grow further by 2025. Growing geriatric populations, an increase in the prevalence of chronic diseases, increased adoption of imaging devices used in medical evaluations, and technological advancements in imaging methods are the main factors driving the diagnostic imaging market in Europe.
As more people age, chronic diseases are predicted to become more prevalent, creating a high demand for medical imaging devices.
- Germany launches €10bn ‘Future Fund’ for startups.
The “fund for future technologies” will allocate a total of €10 billion toward startups by 2030 to attract at least 20 billion euros in private investment.
Over the past decade, Europe has built a thriving, dynamic, and robust startup ecosystem that attracted €40bn+ in 2020 — sixfold the investment of 2010 — and spawned global scale-ups including 70+ unicorns, creating more than 2 million jobs.
The pace of innovation in Europe is increasing and plenty of exciting new things are brewing. On the whole, it’s pretty optimistic. Acceleration is in full swing.
Although Europe’s startup ecosystem has long been known for its software companies, today’s European startups are exploring different sectors across the board—from energy technology to sustainability services to cloud computing solutions.
How is it causing the innovative boom?
1) Europe is proving adequate support & it’s not just Silicon Valley that can produce successful companies when it comes to technology.
2) The European government has become more supportive of entrepreneurs by providing funding for small businesses and reducing regulations for startups in comparison to the U.S..
3) Europe has a high number of influential female founders.
4) The European education system emphasizes creativity and innovation, which helps students develop strategies they can adapt to after graduation.
The global startup ecosystem is thriving with innovation from startups in Europe. In the coming years, we can expect to see more startups emerging and growing faster than ever before in Europe despite any pandemic.