A Decade of European Startup Founders
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Opening Remarks
Over the past decade, the European tech landscape has transformed dramatically, now boasting a combined valuation of over $3 trillion.
In this report, we dive into the evolution of Europe’s startup landscape, uncovering the factors that have fueled fundraising success across diverse regional hubs.
It highlights how diverse teams—with a mix of skills, strong academic backgrounds, and varied demographics—consistently outperform more homogeneous groups.
Our findings further show that teams with finance and consulting expertise have a distinct edge in attracting capital. This pattern, notably different from Silicon Valley's tech-heavy founder profiles, reflects Europe's historical strength in professional services and the relative scarcity of large tech companies producing the next generation of entrepreneurs.
In this report, we dive into the evolution of Europe’s startup landscape, uncovering the factors that have fueled fundraising success across diverse regional hubs.
It highlights how diverse teams—with a mix of skills, strong academic backgrounds, and varied demographics—consistently outperform more homogeneous groups.
Our findings further show that teams with finance and consulting expertise have a distinct edge in attracting capital. This pattern, notably different from Silicon Valley's tech-heavy founder profiles, reflects Europe's historical strength in professional services and the relative scarcity of large tech companies producing the next generation of entrepreneurs.
As we analyze the past decade's journey in this report, one thing becomes clear: European tech is forging its own path to success. The challenge ahead lies not only in building more successful startups but in creating the next generation of tech companies capable of
producing tomorrow's founders—a crucial step in the
ecosystem's maturation.
“The report reveals the factors that have driven fundraising success across various European hubs over the past decade.”
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Key Takeaways
Team Composition matters
Teams with mixed-skill set raise significantly more funding, with top performers securing 43% more than the baseline.
Team size & education influence fundraising success
Teams with PhD founders raise 66% more, while teams with four co-founders secure 244% more funding.
Mixed & diverse teams raise the most
Mixed-gender teams raise 25% more than all-male teams, while teams with at least one international co-founder secure 44% more funding than local-only teams.
Ex-Consultants attract the most funding
Former McKinsey consultants have secured over $14.3 billion in funding—264% higher than the overall median.
Advanced degrees worth their weight
At the top, PhD founders raise €34.1M outperforming their peers by 66% in the top funding bracket.
MBA holders follow closely, securing €30.0M, a 46% premium over the baseline.
By contrast, Bachelor's degree founders face a significant gap, raising €15.2M (-26%) while founders without formal degrees struggle the most, raising just €13.9M (-32%).
Alumni from UK universities lead in startup creation in Europe
Alumni from UK universities lead in founding companies, with Cambridge, Imperial College London, Oxford, UCL, and LSE making up the top
Alumni from Cambridge, INSEAD, and Oxford lead in total funding raised, with Cambridge founders securing a total of $11.2B, followed by INSEAD at $7.6B and Oxford at $7.3B
Four’s a charm: optimal team size for maximum fundraising
Top teams with four co-founders raise a staggering 244% more capital than the baseline.
Funding generally increases as team size grows,
peaking at four members before it begins to decline with larger teams.
Solo founders face the steepest funding disadvantage, raising 42% less than the baseline.
Solo founders face the steepest funding disadvantage, raising 42% less than the baseline.
Experience pays: serial founders raise more
A serial founder team, defined as having at
least one founder with previous company
founding experience, raises more compared
to teams of first-time founders.
Serial founder teams raise 45% ($7.8M) more
compared to first-time founding teams, and 23%
more than the baseline.
On the other hand, first-time founders raise 15%
less than the baseline.
International teams outperform in fundraising
In the context of this analysis, an international
founder is defined as one from a different country
than their company’s HQ.
Teams with at least one international founder raise more funding than fully local teams. At the top 10% mark, international teams raise $9.5M (53%) more.
The data suggests that international teams often achieve higher funding outcomes, appealing to both founders and VCs.
Teams with at least one international founder raise more funding than fully local teams. At the top 10% mark, international teams raise $9.5M (53%) more.
The data suggests that international teams often achieve higher funding outcomes, appealing to both founders and VCs.
Mixed-gender founding teams rise the most
The data reveals a significant funding gap
between all-male and all-female teams.
All-male teams raise 179% more ($21.5M) than all-
female teams ($7.7M).
However, mixed-gender teams outperform all-male teams, raising 25% more ($26.9M vs $21.5M),
indicating that gender diversity can boost
fundraising success.
As the European ecosystem matures, we will see shifts in the factors that attract investment, influenced by a new wave of founders.
Conclusion
The report highlights some of the key factors that have influenced startup funding in Europe the past decade. It’s worth noting, however, that this is based on past data.
Europe’s startup scene has changed and evolved
over the past decade, with many top companies
producing a new generation of experienced repeat
founders and operators.
As the ecosystem matures, we expect to see shifts in the factors that attract investment. These changes will be influenced by a new wave of founders with proven track records, stronger networks, and a heightened understanding of scaling not just in Europe but globally.
As the ecosystem matures, we expect to see shifts in the factors that attract investment. These changes will be influenced by a new wave of founders with proven track records, stronger networks, and a heightened understanding of scaling not just in Europe but globally.
Download the report to learn more about European founder trends.
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