During the 2018 edition of SEC2SV European Innovation Day, we organized a Workshop on GDPR/Data Privacy.
48 participants from the US and Europe joined a three-hour hands-on session to share experience and develop a common understanding in two interrelated areas: where we are in global privacy regulation and what technology companies can do to respond to the growing awareness for data protection as well as to the diverging legislative approaches from regulators in Europe, the United States and other markets.
Our research shows that 67% of the European scaleups are located around one or maximum two cities per country. That means that the innovation economy in Europe is heavily concentrated in about 50 main hubs, while all the other cities and municipalities – that have been the backbone of the European economy traditionally – face the risk to be increasingly marginalized.
Italy moves too slow and it needs to accelerate significantly.
This was the main diagnosis emerging from our last year report.
One year later, the scenario has not changed. Italy still ranks 11th in the European Scaleup Europe ranking. And the gap from the top has become even wider. Moving slow in the world of technology equates at not moving at all. And, if you are late, it is difficult to catch up with the opponents that are ahead of you if you don’t start running.
As established companies look to remain competitive and extend their life cycle, acquisition becomes a more viable and attractive strategy. Not the only one1, but surely the fastest route in a world when time is the most valuable resource. M&A deals are a boon for startups as well. No exit, no party, as we’re used to saying. While launching a thriving self-supporting business is still the end-goal for any startup, a buyout from a large company can render that problem irrelevant—or at least less urgent. And return the capital to investors, hopefully with a decent multiplier, thus, M&As are a key component of the startup economy.
Europe is a major actor in Silicon Valley. More than any other region in the world, Europe enjoys strong ties to the Bay Area through people, capital, and business. This report serves as our effort to combine the various research we have done working in and around the European Innovation ecosystem in Silicon Valley in each of its facets, i.e. corporates, startups, investors and institutions. Our data show that Europe plays a strong role in Silicon Valley.
Finland is home of 219 scaleups, about 4% of the total amount that we tracked in Europe. They cumulatively raised $1.9B in funding since inception, which is 2.3% of the total capital raised by European scaleups to date. The Finnish ecosystem is in the ninth position of the European Scaleup Country Index, between the Netherlands and Denmark. If absolute numbers suggest that Finland is really far from UK, Germany, France, and Sweden, the conversation changes in relative terms. Starting this year we introduced two indicators to better understand the efficiency of a scaleup economy as it relates to the size of the country in question.
EU Corporate Innovation Outposts in Israel is a preliminary study with the goal of validating data and finding out who’s who in the Israeli ecosystem. We are following the approach set in the previous year with our Silicon Valley Innovation Outpost Report, which has the same goal but for a different region. Create a forum for these innovative corporate players to meet each other and to share their objectives with the local entrepreneurial community.