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Europe’s leaders are developing a strategy to create technology giants

Europe’s leaders are developing a strategy to create technology giants

A group of 200 startup founders, investors, associations and members of the government has issued a proclamation and supports recommendations to create the next wave of tech giants in Europe. French President Emmanuel Macron also stood behind the idea at the Scale-Up Europe in Paris. “To achieve all this, I will pursue their ambition to create 10 technology companies worth at least € 100 billion by 2030,” said Macron.

The companies, investors and associations that signed the proclamation include Alan , Axel Springer, Bpifrance, Darktrace, Deutsche Startups, Doctolib, Eurazeo, Flixbus, France Digitale, Glovo, La French Tech, N26, OVHcloud, Shift Technology, Stripe, UiPath and Wise

In order to achieve the ambitious goal mentioned by the French President, Scale-Up Europe has drawn up a roadmap and a report. Although the project is supported by both private actors and public institutions, it can also be seen as a form of lobbying for the European Commission and European governments

The recommendations contain some key issues. The first is funding. According to the group, Europe is lagging behind, especially in late-stage investment. The largest venture capital funds operating here are not as large as in the United States or China

The French government is working to establish late-stage funds and investments in French public technology companies. “In terms of funding, we have seen the success of the Tibi initiative in France. We believe that we should follow this model at European level as well,” a source close to Macron told Techcruch.

This means that Europe should consider using public funding as a multiplier effect of venture capital funds. The European Investment Fund is already pouring a lot of money into VC funds. However, Scale-Up Europe proposes that private funds be associated, risk-sharing and public investment banks should be brought together for enhanced cooperation

The second issue is the management of foreign talent. Some countries already have technology worker visas. According to the group, this should be standardized throughout the European Union, with a certain level of portability of social rights.

A few years ago, an open letter entitled “Non-option” also pointed to contradictions regarding stock option schemes. Today’s report reiterates that some governments should adopt more favorable rules on stock options.

The third issue revolves around deep technology startups. According to the report, Europe is not doing enough to support more low-tech startups and investors. Recommendations include standardizing the patent transfer framework. These systems are important if we want to turn a research project into a company. According to the report, the European Innovation Council could also play a greater role in setting the high-tech agenda

Scale-Up Europe then highlights some recommendations for improving the relationship between large companies and startups. These are mainly tax incentives, R&D tax incentives and other tax incentives.

Finally, the group of investors, founders and government members behind Scale-Up Europe considers that a European tech mission should be set up to: it works a bit like La French Tech in France. This tech mission could remove regulatory barriers, promote start-ups and provide support in many other areas.

Overall, these recommendations focus mainly on facilitating the creation and growth of start-ups in Europe. Investors and startup employees with stock options can also be pleased to see that it will be easier to make money quickly. It will be interesting to see if the European Commission makes use of some of the recommendations that have just been made, as these are workable recommendations.

However, building a technology giant is a complex task. Technology giants tend to control much of the technology area, including cloud storage, pay, analytics, advertising and artificial intelligence.

Many European startups currently have access to APIs, frameworks and is based on platforms made in the United States or China. Scale-Up Europe says Techcrunch sees no point on this front. Increasing the size of European startups is not a gold rush. It is a long process that requires continuous investment, starting at the bottom and moving up from technology business opportunities.

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