The findings of the 2021 Startup Heatmap Europe report show a continued strong growth of European ecosystems despite international competition and the effects of Brexit and the COVID-19 pandemic. However, Europe suffers from a worsening funding gap in the seed stage and unrealized potentials of internationalization.
Positive Overall Performance:
- Overall funding grows by 14% to 46.3bn € in 2020
- Record high of 5.9bn € government funding balances COVID-19 shock
- Slow but steady growth: Europe now has 6 “unicorn ecosystems” with total investments of more than 1bn € / year
- Fierce competition: 27% of founders start their company abroad
- Brexit pushes London down, while Berlin takes the lead in founder popularity
- Virtualization of events generates 50-160% growth rates in meetups in top hubs.
- Discrimination against women entrepreneurs amounted to
3bn € in 2020
- 58% of startup communities shrank due to the pandemic
- Internationalization rate of startups falls below 50%