A staggering increase in investment for EU start-ups between 2013 and 2014 has indicated that the market is growing at a fervent rate.
I’ve decided to look in to this phenomenon – which parts of the region are strongest, what has brought about the increase and the future for start-ups in Europe.
According to a report from the European Commission, the start-up ‘ecosystem’ in Berlin, Bucharest, Brussels, Helsinki, London, Madrid, Manchester, Munich, Paris and Stockholm saw a 174% increase in investment between 2013 and 2014.
The impressive growth has been caused, in the opinion of one commentator, by passion. Mic Wright at The Next Web has noted that a sense of enthusiasm and dedication to start-up culture permeates throughout Europe, from Amsterdam to Waterford, Ireland.
The enthusiasm of key players within the European start-up sector can be said to be a catalyst for the growth recorded by the EU commission.
When looking at the service developed by the European Commission that is used to map the start-up ecosystem, http://www.startuphubs.eu/, it becomes apparent that the UK capital is a runaway centre for start-up investment. In recent years, the city has become stronger economically and Europe’s other central cities are playing catch-up.
According to the start-up map, London has seen over €8 billion of investment poured in to its start-ups, with Berlin in a distant second receiving over €3 billion in funding.
Such high levels of investment imply that the UK’s capital is the current home of start-up investment – this isn’t a permanent standing however. Europe is slowly recovering from some of the deepest economic crises it has ever seen – growth will follow soon after stability.
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.