The European Startup Monitor (ESM) represents more than 2,300 startups with more than 31,000 employees in all 28 European (13 in-depth analysis) member states and further important countries.
Startups are defined by 3 characteristics:
1. startups are younger than 10 years;
2. startups feature (highly) innovative technologies and/or business models;
3. startups have or strive for a significant employee and/or sales growth (definition of startups, page 15).
Objective of the first ESM: to present the development and significance of startups and to understand the European founders, to identify and compare country-specific and common challenges that startup ecosystems face in Europe and to foster communication between European entrepreneurs.
Some Facts from the 1st ESM:
- European startups are job engineers: European startups create at least 12.9 jobs (including founder/s) after 2.5 years. Moreover, the average start-up plans to add 6.8 more jobs within next 12 months.
- Focus on high-tech: Most startups in the European Startup Monitor form part of the digital economy.
- Startups are innovation drivers: Almost 2/3 of the startups in the European Startup Monitor rate their products and/or services as novel across the European or global market.
- Startups are founded in teams: Most European founders are between 25 - 34 years old. 14.7% of the startup founders in the ESM are female.
- International markets: More than half of all startups already serve international markets, with 8 out of 10 startups planning further internationalisation in the next 12 months.
- European startups are international: 11.9% of startup founders and 31.6%of their employees are from countries other than the location of the startup.
- ESM startups have raised € 2.5 million: ESM startups have raised on average € 2.5 million in external capital. As part of the growth process, startups plan to raise an additional € 3.3 million in external capital on average.
- Satisfied & Positive atmosphere: More than 90% of startup founders are satisfied with their present business situation: 72% assume positive business development over the next 6 months.
- Important challenges: Sales/customer acquisition, raising capital and product development are the most important current challenges for European startups.
- Bureaucracy & regulations: Political expectations: European founders hope for more financial support and improvements in political regulations and bureaucracy.
- Room for improvement: The European startup environment is rated as satisfying, but there is room for improvement and there re significant differences between countries.
Read the full report here