Despite Europe’s thriving startup ecosystems, fragmentation remains a major obstacle to growth. Regulatory hurdles, market segmentation, and uneven resource distribution limit the scalability and investment potential of European startups. However, a glimmer of hope shines through: increased founder mobility and emerging interconnected regions are paving the way for a more unified landscape. As part of the StepUp StartUps project, we’ve delved into this connectivity and produced the report, “Beyond Fragmentation: The Connectivity of Startup Ecosystems in Europe.”
DEEP Ecosystems is proud to be a key partner in the StepUp StartUps project, a European Commission-funded initiative aimed at reshaping Europe’s startup ecosystem. Together with Barrabes, Leibniz IRS, Startup Europe Regions Network (SERN), and EU Startups, DEEP is spearheading a two-year journey to develop data-driven insights, conduct research, and organize events to inform policy transformation.
The primary objective of StepUp StartUps is to provide a comprehensive understanding of the functioning of national and local startup and scaleup ecosystems across the EU-27 and EFTA countries. This knowledge will inform the development of data-driven policy reports on key issues and challenges facing Europe’s startup ecosystem.
Key Findings
- Fragmented regulations across EU member states hinder cross-border operations and increase compliance costs.
- Smaller markets limit economies of scale and require tailored approaches for each country.
- Uneven venture capital landscapes create funding gaps for startups in less developed regions.
- Bureaucratic hurdles hinder the movement of talented individuals and teams across borders.
Positive Trends
- Founders are increasingly operating across borders, fostering collaboration and innovation.
- Startups with teams, investors, and branches in multiple countries are becoming more common.
- Accelerator programs and cross-border investments are contributing to a more connected ecosystem.
By addressing these challenges and fostering a more connected ecosystem, Europe can unlock its full potential as a global leader in innovation and entrepreneurship. The recommendations outlined in this report provide a roadmap for policymakers and stakeholders to create a more supportive and inclusive environment for startups across the continent.
We invite you to participate in discussions that will shape the future of EU innovation. By joining our network, you can contribute to the development of supportive policies and initiatives for startups and innovators across Europe. DEEP is a group of industry leaders who inspire us to explore new trends and policy needs. Join our network to collaborate on data, exchange insights, connect with key players, and share your own perspectives.
The project is funded by the tender of the European Commission on “European Start-ups 2.0 – Taking Europe’s start-up economy to the next level through data-driven insights, research and events” with number CNECT/2022/OP/0133. Views and opinions expressed are however those of the authors only and do not necessarily reflect those of the European Union, European Commission or the Council of Europe. Neither the European Union nor the granting authority can be held responsible for them.