The problem runs deeper than business climate - it’s cultural.
Across most of Europe (not all - the Baltic states have produced quite a few unicorns) there’s a pervasive attitude that technology is… icky. Struggling to come up with a better way of putting it, but at best entrepreneurship in tech is met with blank incomprehension, and at worst sneering contempt. People use it, unthinkingly, but to be interested in it, to invest in it, seems to fall into the category of “we must have world peace before we spend money on space exploration”.
Yes, this is hand-wavy, but in my experience as a tech entrepreneur in Europe, if you want investment, you talk to the Americans. If you want a growth market, you target the Americans. If you don’t want to be justifying your price tag 20 times a day… you get the picture.
Of course there exist incubators, funds, and so-forth, but the money on the table is a pittance compared to the U.S., and again, the culture here is like “why don’t you get a real job, train as a lawyer, a doctor, or a banker, and stop playing video games?” when you’re running a profitable technical startup.
> Across most of Europe (not all - the Baltic states have produced quite a few unicorns) there’s a pervasive attitude that technology is… icky. Struggling to come up with a better way of putting it, but at best entrepreneurship in tech is met with blank incomprehension, and at worst sneering contempt. People use it, unthinkingly, but to be interested in it, to invest in it, seems to fall into the category of “we must have world peace before we spend money on space exploration”.
Generalising a whole continent with such nonsense is... bold. Any data to back this up? Surveys? Anything? There are tons of people in tech, and tech startups all around various European countries. Most don't become unicorns, or get bought out by American giants. But that doesn't mean that people generally find them "icky".
Or did you only talk to 80+ year olds in some rural areas in Belarus?
> but in my experience as a tech entrepreneur in Europe, if you want investment, you talk to the Americans
Yeah, but that’s not so much cultural but rather the US capital markets are fueled by foreign demand of USD.
The same inflated capital markets with mid-level investors with few pocket existed in every historical financial hegemony, like the British and the Dutch before then.
I do agree on the points, but I think the root cause it's more connected to the use of the resources available. US has lots of resources and is willing to "bet" most of them on risky things. One implication is that they don't use them for other things - like trying to improve the life quality of their population.
Now, if I look at the evolution of tech, nowadays there is so much already possible with open source solutions (think 2000s - did you have an open source office solution? communication platforms? mobile os? etc.) that I think developing new solutions not relying on American companies will be orders of magnitude easier. Will it be efficient economically? Probably not. But if it is required it will work.
Because of the Bretton Woods system and the subsequent Nixon shock. The combination of these meant the USA can print much more money than anyone else, give it to whoever it likes (it always ends up at shareholders), and the resulting inflation is the whole world's problem. Because the USA prints so much money that ends up at shareholders and some at bondholders, the rest of the world buys US shares instead of the rest of the world's shares. The US ownership class basically ends up with so much money and not enough things to do with it, and some of it gets put in these risky technology bets. Other side effects include low wages, since US owners don't have to pay workers to make good products as much as they do in other parts of the world, preferring to just siphon off the endless free money stream, and high non-financial asset prices (e.g. houses), since there are so many wealthy owners to sell to instead of workers.
And the Bretton Woods system is basically a side effect of the fact that Europe had World War 2 and the USA didn't.
Across most of Europe (not all - the Baltic states have produced quite a few unicorns) there’s a pervasive attitude that technology is… icky. Struggling to come up with a better way of putting it, but at best entrepreneurship in tech is met with blank incomprehension, and at worst sneering contempt. People use it, unthinkingly, but to be interested in it, to invest in it, seems to fall into the category of “we must have world peace before we spend money on space exploration”.
Yes, this is hand-wavy, but in my experience as a tech entrepreneur in Europe, if you want investment, you talk to the Americans. If you want a growth market, you target the Americans. If you don’t want to be justifying your price tag 20 times a day… you get the picture.
Of course there exist incubators, funds, and so-forth, but the money on the table is a pittance compared to the U.S., and again, the culture here is like “why don’t you get a real job, train as a lawyer, a doctor, or a banker, and stop playing video games?” when you’re running a profitable technical startup.