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 reminiscent of Horizon, has helped generate €520 billion in whole firm worth.
In accordance with the findings, European Union Framework Programmes have offered €12 billion in direct funding to startups. These startups secured a further €70 billion in enterprise capital funding, with the supported corporations 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 reveals 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 corporations now price €520 billion. And past pure worth creation the success of worldwide necessary corporations like BioNTech and ARM are main strategic wins for Europe in key know-how areas. Provided 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 challenge report combines EU knowledge with Dealroom’s world startup intelligence, analysing over 13,600 EU-backed startups. This report marks the primary complete evaluation of EU startup help programmes’ affect on progress and innovation.
Over the previous 40 years, EU analysis and innovation initiatives have allotted important funding by way of programmes together with the Seventh Framework Programme, Horizon 2020, and Horizon Europe. Of the entire €225 billion deployed by way of these three programmes, roughly €12 billion (5%) went on to startups.
Notable success tales embody BioNTech, which developed a Covid vaccine, and ARM, a pacesetter in cell 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 entire 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 whole European ecosystem. EU help additionally performs a key position in sectors together with SpaceTech, Semiconductors, ClimateTech, and Robotics.
These EU-backed startups even have a considerably larger commencement fee 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 embody:
Solely 5% of EU innovation funding is allotted to startups, regardless of their essential position in Europe’s future and world innovation.
Over the past three EU framework programmes, 13,600 startups have acquired funding, totaling €12 billion from the EU and €70 billion from non-public VC, already price €520 billion.
EU-backed startups, notably 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 help 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 embody:
Broaden 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 Help 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 reminiscent of Dealfllow.eu and Innovation Radar with actual time startup insights and matchmaking to empower stakeholders.
Upcoming Occasions:
Insights from the report will likely be offered at VentureBridge on 7 March at The Social Hub in Barcelona
