Europe is home to 1,000 rapidly growing tech companies, or ‘scaleups’, that have collectively raised €13 billion, according to a new report. The UK leads the way, boasting 40% of these scaleups and 50% of the capital raised. London, in particular, is a hub for technology, with 29% of all European scaleups and 34% of the capital.

Despite the impressive figures, Europe is still lagging behind the US. The amount of capital raised by European scaleups is only 14% of what their US counterparts have achieved. There is also a significant gap in the number of ‘scalers’, or companies that have raised over $100 million. Europe has 36, compared to the US’s 800.

The report suggests the European tech ecosystem needs to be more ambitious. It points out that most European scaleups are content with raising €1-10 million and then selling out, rather than aiming for higher growth. The report also highlights the need for more late-stage funding to help these companies scale.

Interestingly, the report reveals that 44% of scaleups are created in innovation hubs, suggesting that these areas play a crucial role in nurturing tech companies. The report also shows that 14% of scaleups are born global, meaning they have international customers from the start.

Finally, the report finds that the average age of European scaleup founders is 36, debunking the myth that successful startups are typically founded by very young entrepreneurs.

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