Does Europe Build Real Innovation?

Highlighting Europe's Impact on the Startup Ecosystem with EUROPE BUILDS 🎙️

When we founded BORRN, we were deeply rooted in the European startup ecosystem, yet constantly aware of the contrasts with the US system, which was historically seen as the benchmark for tech innovation and venture success. This awareness sparked a broader curiosity:

Is Europe merely following in the footsteps of Silicon Valley, or is it carving out its own path of unique and impactful innovations?

Europe’s startup ecosystem is no longer just an underdog story.

Recent years have seen a significant surge in entrepreneurial activities across the continent, with a marked increase in the number and diversity of startups. This growth is supported by the increase in EU funding and the growing venture capital interest. Moreover, layoffs at 311 tech companies have spurred a wave of technical talents to pivot towards entrepreneurship, enriching the startup ecosystem with new founders.

Despite these advances, a comparative analysis with the US reveals persistent gaps, particularly in scaling businesses beyond early stages. European seed-stage startups have historically secured less capital than their US counterparts, although this disparity has decreased over time, e.g. by 2021, seed funding in Europe averaged around $2.5 million, nearly matching the US average of $2.7 million. However, as startups progress to Series A and beyond, funding disparities begin to emerge, underscoring a critical challenge for Europe: scaling. European Series A companies, on average, raise about two-thirds of the amounts raised by US startups. While the gap narrows by Series B, it is evident that growth funding remains a bottleneck. Moreover, the entrepreneurial cultures in the US and Europe differ significantly. The US benefits from a unified approach to storytelling and startup promotion, which has historically given its enterprises a competitive edge in securing capital and scaling globally.

Europe, with its diverse languages and cultural nuances, faces unique challenges in crafting universally compelling narratives.

Launching EUROPE BUILDS🎙️: Α Bold New Narrative for Europe

Intrigued by these complex challenges, BORRN is launching EUROPE BUILDS, a podcast dedicated to diving deep into the real stories behind Europe’s startups.

More than just a celebration of entrepreneurial success, we aim to explore the intricate nuances of European innovation through the personal journeys of its founders. Each episode tackles, among others, these tough topics —scaling challenges, funding disparities, diverse entrepreneurial culture, and the art of storytelling—through candid conversations with those who live these realities every day.

These discussions deeply resonate with us as we work alongside founders every day, helping them navigate the complexities of launching and scaling businesses in such a diverse environment. By sharing these stories, we aim to provide a more comprehensive and authentic picture of what entrepreneurship really looks like across Europe, encouraging a reevaluation of the global innovation map. Europe is not just a participant but an equal player in global tech and business innovation.

Guiding us through these conversations are co-hosts Mathilda Nathan, our CEO with a 12-year tenure in the European startup ecosystem, and Niko Efstathiou, a seasoned journalist and communicator with over a decade of experience in Europe and the US. Together, they bring a rich blend of operational expertise and narrative flair, promising to unearth insightful stories and lessons from the forefront of European innovation.

Spotlight on Fundraising: Our First Guest

Our first episode features Alex Loizou, a computer scientist turned entrepreneur who founded TROUVA in 2013, a leading platform for discovering and shopping independent boutiques and brands across Europe. In this episode, Alex shares essential insights into the complexities of securing capital. We discuss successful and unsuccessful strategies, the nuances of fundraising in the US as a European founder, and key decision-making criteria such as when to raise funds, how much to seek, and from whom. This episode is a deep dive into the strategic and honest approach to building enduring relationships with investors, essential for any startup’s growth.

Conclusion: A Call to Action

EUROPE BUILDS goes beyond surface-level success stories to explore the gritty, authentic experiences of Europe’s top founders. We dissect the complexities of the EU startup ecosystem, from seed to scale, discussing the unfiltered realities and strategic insights necessary for success. We're providing a platform where founders can share their journeys, learn from each other, and inspire a new generation of entrepreneurs.

We believe that these narratives are not just inspiring but essential.

📆 Catch the Premiere of EUROPE BUILDS on the 24th of September on Spotify & Apple Podcasts

Stay tuned for a series that promises to redefine the contours of global innovation, one founder's story at a time.

*Sources:
Europe has never produced a tech giant because it lacks ‘technical’ founders, report finds, ANTLER (link)
Is It Still Cheaper To Invest In European Versus US Startups?, CRUNCHBASE (link)
Cultural Differences Explain The Business Chasm Between The U.S. And Europe, Forbes (link)