{"id":373496,"date":"2025-08-26T02:56:45","date_gmt":"2025-08-26T02:56:45","guid":{"rendered":"https:\/\/www.europesays.com\/de\/373496\/"},"modified":"2025-08-26T02:56:45","modified_gmt":"2025-08-26T02:56:45","slug":"europe-invests-billions-but-where-are-the-scaled-start-ups","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/de\/373496\/","title":{"rendered":"Europe invests billions \u2013 but where are the scaled start-ups?"},"content":{"rendered":"

\"Dr<\/a>Dr Andreas Schmidt, Springboard Health Ventures<\/p>\n

Bildnachweis: Springboard Health Ventures<\/a>.<\/p>\n

European countries, especially Germany, invest billions annually in basic and translational <\/strong>research. The scientific quality is high, the researchers are world-class, and the infrastructure is <\/strong>strong. Yet despite this foundation \u2013 and despite being wealthy, innovation-driven economies \u2013 <\/strong>entrepreneurial output remains limited. Too few research projects evolve into high-growth startups.<\/strong> Even fewer scale sustainably.<\/strong><\/p>\n

Europe suffers from a persistent venture capital gap. The most critical shortage lies in the EUR 5 million to 15 million range \u2013 the early growth stage when companies move beyond proof of concept but are not yet ready for late-stage funding. Below that threshold, start-ups may access grants, translational funds, or early-stage capital from angel investors and initiatives like the High-Tech Gr\u00fcnderfonds (HTGF)<\/a>. Above it, most venture capital firms focus on rounds of EUR 30 million or more, offering better capital efficiency, lower scientific risk, and timelines better aligned with typical fund lifecycles (ten plus two plus two years). The result: a dangerous gap in the most crucial growth phase \u2013 the so-called valley of death.<\/p>\n

Copying silicon valley? It won\u2019t be enough<\/p>\n

In the US, firms like Flagship Pioneering invest from the company- building stage \u2013 despite managing billions \u2013 combining capital with strategic guidance and urgency. In China, large early-stage rounds accelerate company formation and scale. By contrast, European grants and funding programmes tend to prioritise validation and documentation. While this reduces risk, it often slows real progress. Success is measured in compliance and paperwork rather than tangible market outcomes. Europe doesn\u2019t need to copy Silicon Valley \u2013 it needs a model that fits its own strengths, structures, and ambitions.<\/p>\n

Europe\u2019s untapped strength: The \u2018Mittelstand\u2019 and hidden champions<\/p>\n

Germany and Europe possess a unique, underutilised asset: the mittelstand and hidden champions. These family-owned industrial champions were start-ups just a generation or two ago. They represent long-term thinking, deep expertise, and generational capital. Rather than building a \u2018Silicon Valley on the Rhine or Isar,\u2019 we should focus on building bridges \u2013 between the mittelstand and today\u2019s health and deeptech start-ups. This could mean:<\/p>\n