European entrepreneurs no longer blush in the face of Silicon Valley
Brexit or not, the European start-up ecosystem is on the way to becoming a major player in Tech on a global scale, according to the report “The State of European Tech 2016: the future is being reinvented in Europe»Realized by the investment fund Atomico, and presented on the occasion of the conference Slush, which begins this Wednesday, November 30 in Helsinki.
As part of this study, nearly 1,500 entrepreneurs, investors, tech employees, and influencers in Europe were surveyed. It appears that the latter are confident about the potential of Tech in the old continent, at 88%. Asked about the question, nearly 8 out of 10 respondents believe that the Brexit vote has had no effect on their business to date. 82% of British entrepreneurs agree.
Beyond the economic climate, which is rather conducive to the development of Tech champions, the ecosystem also has sizeable assets to highlight, say the authors of the study.
5 of the 10 best IT schools are European
Europe’s first strong point compared to the rest of the world: its particularly renowned schools and training institutes. 5 of the 10 best computer science schools are indeed European, like ETH in Zurich, Oxford and Imperial College in London. In addition, three-quarters of survey respondents believe that European engineers are well or even very well trained.
Unsurprisingly, these talents are sought after, including outside European borders, and nearly a third of ecosystem members surveyed perceive a talent shortage. The authors of the study have yet identified 4.7 million developers in Europe at present, against 4.1 million in the United States.
Beyond technical profiles, the MBAs of the best European business schools are also training more and more future tech executives. For example, 1 in 5 graduates of the 2015 MBA class from London Business School found a job in the digital sector. This is 25% more compared to the previous promotion.
Access to finance has remained stable for 12 months
Another advantage of Europe, if we look at what is happening in the United States, access to financing has remained stable or even eased over the past twelve months, for 71% of investors. An equal proportion of entrepreneurs share this opinion.
More specifically, entrepreneurs and investors believe that access to finance early-stage remained broadly the same, while 31% of them believe that access to finance later stage has been easier for a year. We regret that the study does not give details by country on this subject.
Another finding of the study, in terms of financing countries such as France, Sweden or Spain are starting to compete with the United Kingdom and Germany, which historically concentrated more than half of the investments made in Europe.
A desire to get closer geographically to talents
Proof of the attractiveness of Europe in terms of business creation, more than half (58%) of the entrepreneurs surveyed believe they are in the right place to set up their business. If they had to create a new business, 16% of them would go to live in another European country, 12% would dream of settling in Silicon Valley, and 8% elsewhere in the United States.
Among the reasons given to justify this desire to emigrate to be an entrepreneur, respondents firstly cite access to talent (at 71%), the quality of the ecosystem (at 69%), and higher operational costs. low (at 51%). Access to capital is cited by only 44% of respondents.
Finally, in terms of geographic distribution, the United Kingdom, Germany, and France lead the most attractive countries for tech talent looking for professional opportunities, all profiles. Unsurprisingly, the Tech communities in the capitals of these three countries are particularly dynamic: + 20% of active members recorded in London between 2015 and 2016, + 33% in Paris or even + 49% in Berlin.
** Methodology: A questionnaire was also conducted with nearly 1,500 entrepreneurs, investors, tech employees and European influencers between September and October 2016. The report was also drawn up using information provided by partners such as Linkedin , Meetup, etc.