A primary-of-its-kind report compiled by Dealroom, with Dealflow.eu and EU-Startups, reveals {that a} €12 billion funding made up of EU grants and Framework Programmes resembling Horizon, has helped generate €520 billion in complete firm worth.
Based on the findings, European Union Framework Programmes have offered €12 billion in direct funding to startups. These startups secured an extra €70 billion in enterprise capital funding, with the supported firms now collectively valued at €520 billion. This represents 10% of all venture-backed startups in Europe.
Yoram Wijngaarde, founder and CEO of Dealroom stated “This knowledge is each thrilling and necessary to have the ability to share, for the very first time. This report exhibits that public funding can de-risk early innovation and pave the best way for personal capital, with extremely profitable outcomes. €12 billion funding of EU funding has helped catalyse firms now value €520 billion. And past pure worth creation the success of worldwide necessary firms like BioNTech and ARM are main strategic wins for Europe in key know-how areas. On condition that startups symbolize simply 5% of Framework Programme funding however ship such clear, traceable and promising returns, there’s a robust case for rising their allocation in future programmes.”
The Innovation Radar Bridge undertaking report combines EU knowledge with Dealroom’s international startup intelligence, analysing over 13,600 EU-backed startups. This report marks the primary complete evaluation of EU startup assist programmes’ affect on progress and innovation.
Over the previous 40 years, EU analysis and innovation initiatives have allotted vital funding via programmes together with the Seventh Framework Programme, Horizon 2020, and Horizon Europe. Of the full €225 billion deployed via these three programmes, roughly €12 billion (5%) went on to startups.
Notable success tales embrace BioNTech, which developed a Covid vaccine, and ARM, a pacesetter in cellular chip know-how. Whereas ARM benefited from an earlier Nineties Framework Programme and isn’t included within the €400 billion valuation of present startups, together with it brings the full worth creation to €520 billion.
As a lot as 74% of EU-backed startups manufacture bodily merchandise, largely in frontier tech areas, in contrast with 25% within the complete European ecosystem. EU assist additionally performs a key position in sectors together with SpaceTech, Semiconductors, ClimateTech, and Robotics.
These EU-backed startups even have a considerably larger commencement charge between VC rounds, in contrast with European VC-backed startups that didn’t obtain any EU funding. These findings present the necessary position that EU programmes play, typically on the early stage, in de-risking the expansion journeys of European tech champions.
Key observations from the report embrace:
- Solely 5% of EU innovation funding is allotted to startups, regardless of their important position in Europe’s future and international innovation.
- During the last three EU framework programmes, 13,600 startups have acquired funding, totaling €12 billion from the EU and €70 billion from non-public VC, already value €520 billion.
- EU-backed startups, significantly in DeepTech sectors like AI, Robotics, and ClimateTech, have larger commencement charges and present promising outcomes, although most stay in early phases requiring additional funding to scale.
- The complexity and variety of present EU funding programmes create challenges for startups to entry the assist out there.
- EU funding has offered a profitable launchpad for startup at early phases, and may be thought of fruitful searching floor for personal traders to again in additional rounds
Suggestions to the European Fee embrace:
- Increase Startup Funding
- Improve the funding allocation to startups in Horizon Europe’s successor programme (FP10) to capitalise on their measurable financial and societal affect.
- Streamline Assist Mechanisms
- Promote Visibility
- Scale up EU startup summits and pitch days to attach EU-backed startups with non-public traders and corporates.
- Leverage Digital Platforms
- Scaleup current instruments resembling Dealfllow.eu and Innovation Radar with actual time startup insights and matchmaking to empower stakeholders.
Upcoming Occasions:
Insights from the report might be introduced at VentureBridge on 7 March at The Social Hub in Barcelona. Click on right here to learn the complete report.
