Europe is striving to match Silicon Valley’s success in nurturing tech startups, yet struggles with a lack of funding. Despite being home to some of the world’s top universities and research centres, Europe’s potential for startup growth is hampered by insufficient venture capital. While American startups attract an average of £1.3m in initial funding, European counterparts often receive less than half that amount.
In addition, European startups face an uphill battle in scaling up due to fragmented markets, diverse cultures, and various languages. Silicon Valley benefits from a large, unified market, a common language, and a culture of risk-taking.
The European Commission has recognised these challenges, launching an action plan to bolster venture capital markets and ease regulations. It aims to create a single market for venture capital funds, enabling them to operate across the EU.
Despite these issues, Europe has seen some success stories, including Spotify and Skype. These companies serve as inspiration for aspiring European entrepreneurs, demonstrating that global success is possible despite the hurdles.
The key to Europe’s future success lies in creating a supportive ecosystem, including more funding, a unified market, and a culture that encourages risk-taking and innovation.
Go to source article: http://www.theguardian.com/media-network/media-network-blog/2014/feb/17/europe-silicon-valley-tech-startups-funding