Top start-up hubs reinvent the model for European tech sector needs

In Europe, the development model imposed by startup centers is being reinvented

The following contribution is from John Thornhill, who is the innovation editor of the Financial Times and writes a weekly column on the impact of technology. He is also the founder and editorial director of Sifted, the FT-backed site for European startups, and founder of FT Forums, which hosts monthly meetups for senior executives.

John was previously deputy editor and news editor at the Financial Times in London. He has also been Europe editor, Paris bureau chief, Asia editor, Moscow correspondent and columnist for Lex.

The main startup centers reinvent the model for the needs of the European technology sector, with the United Kingdom leading the FT/Statista/Sifted ranking with the most hubs, followed by Germany and Spain

If we mention startup hubs, most people think of Silicon Valley. Think of startup hubs and you probably think of Y Combinator: the historic American accelerator, whose motto is «make something people want,» has attracted budding entrepreneurs from around the world who, like Apple’s Steve Jobs, They dream of putting “a dent in the universe.”

The main startup centers reinvent the model for the needs of the European technology sector, with the United Kingdom leading the FT/Statista/Sifted ranking with the most hubs, followed by Germany and Spain



Since 2005, Y Combinator has nurtured and funded 4,000 startups with a combined valuation of $600 billion, including Airbnb, Dropbox, and Stripe.

All regions of the world have looked with envy at this model of business dynamism and have tried to copy the West Coast playbook. No one has achieved it in the same way.

But what has emerged, at least in Europe, is a much more diffuse and diverse technology ecosystem, supported by a dispersed network of incubators and accelerators across the region.

By 2021, some 98 cities in 28 countries in Europe had produced a unicorn: a startup with a valuation of at least $1 billion.

To map these emerging startup hubs, the Financial Times – with its research partner, Statista, and the FT’s sister publication, Sifted – has compiled a ranking of Europe’s leading incubators and accelerators.

The inaugural list, covering 125 centers in 21 countries, is published today. Centers included range from offshoots of established universities to fully commercial corporate incubators and accelerators.

London in the lead

Not surprisingly, perhaps, the UK (with London being Europe’s venture capital hub) is home to the largest number of listed companies (24), followed by Germany (16) and Spain (15). But the research also identifies a growing number of promising centers in central and eastern Europe, especially in the Czech Republic, Poland and Romania.

The three highest ranked centers are UnternehmerTUM in Germany, Hexa in France/Belgium and SETsquared in the UK.

Each center was rated by its own alumni, 2,600 in total

In six categories:

– tutorships.

– training development.

– infrastructure; legal assistance.

– business development.

– networks.

– financing.

Independent experts, including angel investors, venture capitalists, entrepreneurs and academics, also added their assessments. And additional scores were awarded, based on the most successful startups that emerged from each hub.

The UnternehmerTUM, part of the Technical University of Munich, scored particularly highly among alumni in terms of networking. “My entire journey and transformation to becoming an entrepreneur was fostered by UTUM,” one wrote. «UTUM is a machine for making unicorns.»

TUM, which calls itself Business University, boasts that its students have created 11 unicorns, known locally as Munichorns, including software company Celonis, flying car startup Lilium and AI-powered video content generator Synthesia.

Many of Europe’s most promising start-up centers are linked to universities

But academic founders have often criticized universities for overly protecting intellectual property and demanding too high an equity stake in any university spinout, suppressing value for other investors.

European startups have also suffered from a lack of growth capital to enable promising companies to achieve global scale.

It is not surprising, perhaps, that the United Kingdom (with London being the center of venture capital in Europe) is home to the largest number of listed companies (24), followed by Germany (16) and Spain (15 ). But the research also identifies a growing number of promising centers in central and eastern Europe, especially in the Czech Republic, Poland and Romania



Venture capital investment. Funding for European technology companies plummets by almost half

Nathan Benaich, general partner at venture capital group Air Street Capital, says European countries need to develop larger funds of growth capital to build promising businesses and encourage enlightened universities to be «long-term greedy, not short-term greedy.» » when it comes to spin-outs.

“It is fair to say that in Europe, until today, we have one or the other, but rarely both,” says Benaich.


The second-place center, Hexa

It describes itself as a startup studio that creates several companies in parallel and as a team. To do this, Hexa takes a 30 percent equity stake in the startups, an extremely high figure by most centers’ standards, although it covers all of the companies’ costs for the first year.

Hexa focuses, in particular, on the creation of enterprise software, fintech and web 3 companies

He has launched 40 companies with a combined valuation of more than $4.5 billion. “Hexa has provided us with valuable product advice in the SaaS [software as a service] industry, as well as a strong network of business angels for fundraising,” commented one participant.

The third-place centre, SETsquared, is an unusual collaborative business incubator run by six British research universities: Bath, Bristol, Cardiff, Exeter, Southampton and Surrey. Since its launch in 2002, SETsquared has supported over 5,000 entrepreneurs, enabling them to raise £4.4 billion in funding.

One participant cited the benefit of multiple meetings with investors and industry partners, which was critical to the success of the business. “The team is truly committed and supportive,” the alumnus wrote.

These three very different approaches to creating startups highlight the diversity of Europe’s tech ecosystem

«There is probably nothing equivalent to Y Combinator in Europe,» says Benaich. “But Y Combinator was founded in a different time. They provided a product that was unique at the time.

In other words, Europe no longer needs to try to emulate Y Combinator. It is creating its own dynamic startup hub model





The new technological frontier: exploring the technology centers of Eastern Europe


The following contribution is from Alia Shkurdoda who is a market analyst at Grid Dynamics focusing on the CEE technology ecosystem, omnichannel commerce and smart manufacturing.

As talent shortages strain resources in traditional tech strongholds like the United States and Western Europe, many companies are looking to outsource at least some of their software development activities.

Over the years, Eastern Europe has positioned itself as a leading global hub for software engineering and technology talent.


Whether outsourcing product development projects, forming partnerships or accelerating innovation through new startups, the region brings exceptional value and technical knowledge.

Eastern Europe’s technology hubs combine motivated professionals, business-friendly conditions and a proven track record of supporting leading multinational companies.

For any organization seeking growth and digital transformation, working with IT professionals from countries such as Poland, Ukraine, Hungary, Romania and the Baltic states opens new horizons full of skills and potential.

Many of Europe’s most promising startup hubs are linked to universities, but academic founders have often criticized universities for overly protecting intellectual property and requiring too high an equity stake in any university spin-out, suppressing value for other investors



In this article, we explore the largest offshore centers in Eastern Europe and the unique advantages they offer for global companies

We examine which countries offer the most developed and mature technology ecosystems for investment and collaboration, as well as strong engineering talent and opportunities to leverage expertise in cutting-edge technologies.

Eastern European technology hubs: benefits for global companies

From agile startups to multinational corporations, forward-thinking companies around the world are turning to Eastern Europe’s burgeoning technology hubs for innovation and strategic growth.

Despite being overlooked in the past, the cities of Central and Eastern Europe (CEE) have now become rich sources of world-class IT talent, experience and potential for long-term success.

For companies seeking technological capabilities to gain an advantage, collaborating with the region’s thriving innovation ecosystems offers new frontiers for strategic advancement. The benefits of partnering with Eastern European technology companies include:

Talent wealth

The Eastern European region is home to over a million developers. This figure stands in stark contrast to the severe talent shortage, which is acutely felt in traditional technology bastions such as the United States and Western Europe.

In the US alone, there are more than 900,000 unfilled software development jobs, highlighting the persistent trend of demand consistently outstripping available capacity. Meanwhile, Eastern Europe’s tech hubs have cultivated an abundant supply of skilled developers helping international companies close the skills gap.

A black book with the title Software Development in CEE

Software development in Central and Eastern Europe: Closing the technology gap for Western Europe and the US

Why Central and Eastern European countries are a sweet spot for global companies looking for cutting-edge technology at a reasonable price.

Several factors have contributed to CEE’s emergence as an IT benchmark with dense networks of talent ready to take on global projects:

Eastern European countries have a long tradition of excellence in engineering, mathematics and science education. This has resulted in a workforce with strong technical capabilities.

Many multinational companies have opened offices and development centers in Eastern Europe, attracted by the highly skilled workforce and lower development costs. This has created booming IT job markets in the region’s major technology hubs, including Warsaw, Bucharest, Wroclaw, Tallinn and kyiv.


Graduates of Eastern European universities often choose to stay locally rather than emigrate, as jobs and salaries in the technology sector have increased.

Engineering intelligence

Talented software developers are the greatest asset of Eastern European IT centers. Local technology professionals are recognized for their strong technical capabilities and engineering skills.

Eastern European programmers are valued for their expertise in complex languages such as C++ and JavaScript, as well as specific skills such as machine learning and data science.

The region’s engineers are also trained in the latest development stacks and frameworks, such as Ember, Svelte, Laravel, and Spring. With this combination of educational rigor and practical skills, Eastern European developers are globally recognized for being extremely capable of solving complex programming challenges.

For any organization seeking growth and digital transformation, working with IT professionals from countries such as Poland, Ukraine, Hungary, Romania and the Baltic states opens new horizons full of skills and potential



Cost-quality balance

Global demand for skilled software engineers continues to rise, resulting in high labor costs, especially for in-demand specializations.

Outsourcing software development helps businesses reduce their expenses, leading to significant cost optimization. While exact savings vary, offshoring to technology hubs in Europe can reduce project expenses by 40% to 70%.

CEE provides an optimal balance between quality and profitability. The region has a strong pool of technology talent available at competitive hourly rates.


While this is higher than the salary range in low-cost countries such as the Philippines, Eastern European engineers bring proven experience, strong English skills, and cultural compatibility. The combination of these factors is well worth the reasonable premium.


Eastern Europe’s deep talent pool allows technology companies to quickly scale their engineering teams on demand. With easy access to a large pool of experienced developers, companies can expand the capacity of their projects without sacrificing quality.

Outsourcing providers typically have large databases of pre-screened candidates that can be used to build large teams in a matter of weeks. For example, companies can go from 5 developers to 30+ in less than a month if needed for new product launches or specific stages of development activities.

Thanks to government support of the STEM field and the region’s strong technical universities, CEE has a steady pipeline of skilled graduates.

The growing number of technology professionals allows technology companies to quickly meet demand spikes for particular skills or technologies, ensuring fast and efficient project execution while maintaining high quality standards.



Bussines advice

Over the years, Eastern European vendors have built up experience in all major business sectors, developing complex end-to-end solutions for e-commerce, fintech, healthcare and manufacturing. While a decade ago developers in CEE countries simply complemented internal teams, today they become world-class experts who play a vital role in driving business results.

Eastern European suppliers offer invaluable on-the-ground support to address regional challenges, regulations and opportunities.

They know how to optimize software design for their customers and target markets. With world-class technical skills and unparalleled business advisory capabilities, Eastern Europe’s digital leaders are critical partners in achieving success both globally and locally.

Software development market statistics of technological countries: Poland, Ukraine, Romania, Czech Republic, Hungary, Bulgaria, Belarus and Croatia.

Best IT Outsourcing Countries in Eastern Europe

CEE often appears in several rankings of the best software engineers. For example, according to HackerRank, Poland, Hungary, the Czech Republic, Ukraine and Romania secured their place among the top 20 countries in the world in terms of technological skills, surpassing traditional coding giants: India and the United States.

The latest SkillValue ranking placed Moldova, Ukraine, Romania and Poland among the 10 countries with the best developers in the world. It also names Chisinau, kyiv, Bucharest and Iasi as the best cities for technology in Europe.

These Eastern European hotspots have become magnets for technology companies seeking gateways to ecosystems of innovation and expertise in cutting-edge technologies, such as Big Data, cloud computing, robotics and generative artificial intelligence.

From agile startups to multinational corporations, forward-thinking companies around the world are turning to Eastern Europe’s burgeoning technology hubs for innovation and strategic growth



In addition to a solid technological background, Eastern European specialists also demonstrate remarkable learning agility

Coursera’s new Global Skills Report shows that CEE users have strong business skills and students in half of countries achieve competitive or cutting-edge proficiency scores, including Slovakia, Ukraine, Poland, and the Czech Republic.

Eastern European talent also shows one of the best results globally in the technology and data science domains. In technology, students with high scores are found in Slovakia (90%), Ukraine (94%) and Poland (91%).

In addition to a strong technological background, Eastern Europe benefits from widespread fluency in English, a key advantage for global collaboration

According to the EF English Proficiency Index, several Eastern European countries are among the top 35 in the world for English literacy. This competency facilitates effective communication and cross-border partnerships.

World-class engineering talent, combined with strong business proficiency and widespread fluency in English, forms a powerful foundation for the CEE region to compete on the global technology scene.

Given today’s globalized digital landscape, this comprehensive skillset enables the seamless integration of Eastern European talent into teams around the world, facilitating effective collaboration across time zones.

Let’s delve into the peculiarities of ECO as an attractive destination for software outsourcing and explore the key countries driving digital innovation in the region.


Poland is considered the best place in Eastern Europe to start a business. It is ranked number 1 in the IT competitiveness index in terms of employment, business climate and exports of the IT industry.

There are also more than 400 R&D centers operating in the country, many of which were established by Google, IBM, Motorola, Delphi, Fujitsu, Capgemini, ShellAnother and other foreign companies. While Poland has the largest tech talent pool in Eastern Europe (over 400,000 trained tech professionals), competition for tech talent remains fierce.

The reason is that almost 80% of local engineers work for the aforementioned research and development centers, and only 20% for outsourced service companies.

A key factor contributing to this widening economic gap between Europe and the United States is a significant difference in innovation between the two regions: while the United States invests significantly in innovations that will create economic value in the future, investment levels of Europe are significantly lower




Over the past decade, Lithuania has experienced a rapid transformation of the IT sector. It managed to build a successful startup ecosystem that has more than a thousand companies, the largest number in the Baltic region. Lithuania is also home to two renowned unicorns: Vinted, an online marketplace for buying, selling and exchanging new or second-hand items, and Nord Security, one of the world’s leading providers of digital security and privacy solutions.

The country has achieved inspiring milestones considering it has a relatively low population. National ICT exports have more than doubled in the last ten years, from 674k to 1.4 million.

Lithuania aims to further strengthen its technology sector through ongoing initiatives such as offering startup visas, streamlining bureaucratic processes, and expanding the country’s technological capabilities and infrastructure.

Czech Republic

The Czech Republic’s extensive history in manufacturing and production has laid the foundation for the flourishing technology ecosystem. Thanks to the contribution of the automotive and lens development sectors, and their impact in establishing an enduring culture of innovation and research, the nation has acquired vast technical expertise that is now leveraged within the IT industry.

In addition to that, government-backed initiatives have played a critical role in catalyzing the growth of the technology sector.

Strategic investment in R&D projects, supportive policies and collaborations between academia and industry have propelled the Czech Republic’s tech ecosystem into a dynamic space, attracting both local startups and multinational tech giants.

With its historic industrial prowess and contemporary digital innovation, the Czech Republic is positioning itself as a promising destination for IT skills.

ICT exports already represent 2% of Czech GDP. And the startup ecosystem is expanding rapidly, with more than 900 new tech companies launched, one of the highest numbers among Eastern European nations.


With high-quality infrastructure, strong government incentives and a favorable geographical position right in the heart of Europe, Slovakia has all the key ingredients to succeed as an outsourcing hub. Sharing borders with Austria, the Czech Republic and Poland allows Slovak technology companies to access several lucrative IT markets.

Slovakia has a growing startup landscape packed with digital innovation and investment potential. The ecosystem is centered on vibrant communities of young entrepreneurs in Bratislava and other regional centers, such as Zilina and Kosice.

Incubators, accelerators, and coworking spaces provide launch pads for startups, especially those focused on research and development. Key sectors gaining traction also include healthcare, climate technology, fintech, creative industries and mobility.

Improving the performance of European startups by fostering their success could create significant wealth and more than double the current market capitalization of startups




Since 2000, Romania has managed to ensure 15% annual growth of the IT sector. The emphasis on STEM education allowed the nation to produce a large number of high-quality technology professionals.

The combination of skilled talent and business-friendly policies has made Romania an attractive destination for international technology companies looking to expand in Europe. Several multinational corporations, including HP, IBM, Microsoft, Amazon and Oracle, have already invested in Romanian technology centers by opening their R&D centers throughout the country.


Moldova’s IT industry is export-oriented and 80% of the sector’s capacity is dedicated to outsourcing services.

Free economic zones established by the government across the country helped attract many tech startups to the market. These zones offer tax incentives, simplified regulations and other benefits that allow Moldova to pave its way to becoming a competitive player in software development services.

With affordable rates and a strong pool of talent and technical capabilities, particularly in languages such as Java, .NET and Ruby, Moldova has laid the foundation to become a major force in the field of international software development.


Despite the Russian invasion, Ukraine remains a thriving technology hub and one of the most promising software development hotspots in Eastern Europe. Ukrainian technology clusters unite more than 3,000 technology companies specializing in e-commerce, financial technology, education, healthcare and telecommunications. The country is also home to several world-famous unicorns, including GitLab, Grammarly,, and Genesis.

Many global technology giants, such as Samsung, Oracle, Microsoft and recently Google, have opened their R&D offices in various cities across the country to harness the potential of an impressive talent pool of 285,000 engineers.

This strong investment from major international companies demonstrates Ukraine’s capabilities and cements its status as a leading destination for outsourced IT services and a breeding ground for technological innovations.


Estonia is a hotbed of startups, often called “Europe’s Silicon Valley.” The number of innovative companies in the country is six times higher than the European average. It is home to more than 400 startups like Wise, Bolt, Veriff, Estateguru and others.

This vibrant scene is fueled by a combination of grassroots entrepreneurial energy and supportive government initiatives. Ease of business registration, competitive tax rates and initiatives such as e-Residency further establish an attractive technology ecosystem.

Despite fairly high average salaries (around 2.5 thousand euros), Estonia is a highly sought-after outsourcing country that offers high-level services.


Hungary offers attractive operating conditions including geographic proximity to Western Europe, competitive wage rates, and government incentives such as tax credits for shared services centers. Although still emerging on the global stage, the country possesses key elements such as language skills, infrastructure and cost efficiency that facilitate its continued growth as an attractive outsourcing hub.

The technology industry represents a 10% share of Hungary’s GDP. Approximately 63% of IT revenue comes from the R&D sector. Multinational companies such as Morgan Stanley, British Telecom and IBM have opened dedicated service centers in Hungarian cities to leverage the country’s technical expertise in data management and engineering, infrastructure and operations, framework development and production.

As the impact economy grows, so does the number of new companies focused on impact, those that aim to achieve positive and measurable changes in social and environmental issues




Business-friendly legislation, a low cost of living, technology-driven universities and a thriving startup scene – all these factors have generated significant growth in Latvia’s IT industry.

Over the last decade, the number of technology companies operating in the country has increased by almost 50%. Furthermore, exports from the IT services sector currently reach around €850 million per year, double what they were just five years ago.

With its combination of favorable business conditions, skilled developers and a flourishing entrepreneurial spirit, Latvia has laid the foundation for further IT advancement.

Software development, computer programming and cloud computing are expected to see continued foreign investment and job growth in the coming years.

Top Eastern European hubs for startups

The best technology centers for startups in the world are the United States, the United Kingdom, Israel and Canada. These countries have established mature ecosystems that attract international investments and provide access to talent, resources and infrastructure, driving budding technology companies to grow and develop.

However, in recent years Eastern Europe has also started to pave its way to becoming a decent player in the startup world.

The region demonstrates relentless momentum in terms of technology and innovation. Along with increased government funding, a skilled tech workforce, and growing entrepreneurial activity, the ECO has now cultivated an environment where startups can thrive and expand globally.

Estonian video calling app Skype and money transfer service TransferWise, online presentation app Prezi from Hungary, cybersecurity tool Avast from the Czech Republic, ESET from Slovakia and Grammarly from Ukraine – all of them are startups world-renowned artists born in Eastern Europe.

Eastern Europe has taken active steps to accelerate the development of its startup ecosystem by opening incubators and accelerators to support new companies. As a result, the geography of the region’s business scene is becoming increasingly decentralized: new technology companies are opening not only in the main capitals, but are spreading across the territories of each Eastern European country.

For example, in Poland, technology companies are launching in cities such as Warsaw, Krakow, Wrocław, Poznań and Gdańsk.

Romania has seen a wave of technological entrepreneurship in centers such as Bucharest, Cluj-Napoca, Iasi and Timișoara. Budapest has long been Hungary’s IT capital, but new funds are also coming to companies in Debrecen, Szeged and Pécs.

Meanwhile, Estonia’s startup scene has expanded beyond Tallinn to include Tartu, Pärnu and Narva. While kyiv, the capital of Ukraine, is ranked number 3 among the most promising tech cities in Eastern Europe, it is not the only software development hotspot. The country’s tech ecosystem also includes Lviv, Dnipro, Kharkiv and Odessa.

Source: Grid Dynamics

Graph 1


Tech startup ecosystem in Central and Eastern Europe


Driven by a combination of strong government support, educational rigor and a burgeoning entrepreneurial spirit, CEE countries have cultivated vibrant, cross-sector technology hubs.

On top of that, a combination of deep STEM foundations and practical skills has created a workforce of agile innovators, while decades of global IT outsourcing helped them hone their problem-solving skills.

Looking ahead, ECO is poised to continue its rapid rise as a global technology power. The region has proven its capabilities and is now a top destination for companies looking to leverage IT expertise.

Grid Dynamics has long recognized the region’s engineering potential, its innovation ecosystems and its cultural compatibility with Western business norms. Our company has opened several offices in Poland, Ukraine, Romania, Moldova and Serbia. We believe these countries have the critical ingredients to enable fruitful global partnerships.

Our engineering centers at CEE provide us with additional resources to meet the needs of organizations of any size, whether established businesses, commercial companies or budding startups, no matter where they are located. Our customers have the option to choose the engagement model that best suits their requirements, including team outreach, dedicated teams, pod teams and remote development offices.




Reinventing the European economy from within

The following contribution corresponds to Karel Dörner and Max Flötotto who are senior partners in McKinsey’s Munich office, of which Tobias Henz is a partner; also from Massimo Giordano who is a senior partner in the Milan office.

How Europe’s startup ecosystems can learn from each other to drive and scale entrepreneurship

It may be unnecessary to say that innovation is the heart of entrepreneurship. However, what might need a stronger message is that entrepreneurship is becoming a pillar of a strong and competitive economy.

The legacies of centuries-old institutions should not be discounted, but 21st-century startups have changed the rules of the game. As a result of their growth and innovation potential, startups also have significant potential to improve a region’s economy by adding jobs and market capitalization.

Together with the university cities of Oxford and Cambridge, London is part of the so-called Golden Triangle of qualified talent. London is home to four of the world’s top 40 universities and offers unparalleled access to world-class talent and research



Emerging companies and the innovations on which they are based are the engines of modern economies

A clear example of this is the historic growth of US-based technology champions, which grew enormously between 2000 and 2021 and reinforced the US’s global leadership position.

In the last ten years alone, the US GDP has grown from around $16 trillion to $26 trillion. This pace allowed the United States to not only close its 12 percent deficit compared to Europe (including Norway, the United Kingdom and Switzerland) in 2012, but also reach a 20 percent lead over Europe in 2022.

Launch More Startups and Scale More Startups have been critical components of economic growth in the United States over the past ten years (Exhibit 1).

Appendix 1

The economic gap between Europe and the United States has increased in recent years.

A key factor contributing to this widening economic gap between Europe and the United States is a significant difference in innovation between the two regions: while the United States invests significantly in innovations that will create economic value in the future, Europe’s investment levels are significantly lower, as observed in terms of R&D spending (Exhibit 2).

Appendix 2

Compared to the United States, Europe lags in R&D activity

Europe’s economic competitiveness and sovereignty depend on its ability to build a prosperous emerging ecosystem

A clear indicator of America’s commitment to and investment in innovation is the number and scale of startups that put the United States well ahead of most European markets (Chart 3).

Annex 3

European countries differ in their ability to enable the founding and growth of startups

If Europe wants to close the gap with the United States, it must nurture its own startup ecosystem. The good news is that in 29 countries there are already markets in Europe that are performing extraordinarily well.

Estonia, Switzerland, Sweden and Germany are not only performing well ahead of their European peers in key fundamentals of innovation, but they are also outperforming the United States in the areas of financing, patent applications, R&D spending. D and STEM graduates in post-secondary education. education: some of the characteristics of a successful startup (Exhibit 4).

A global survey conducted by Boston Consulting Group shows that London remains the first choice for tech workers willing to move to a city in a different country. The city’s multiculturalism and diverse knowledge of markets, languages and cultures are ideal for companies seeking to scale globally



Annex 4

European pockets of success: individual countries manage to foster human capital.

Assuming that European countries could learn from best practices already found in different parts of the region and improve their performance in multiple areas of startup success, we expect them to significantly increase the number of startups founded and successfully scaled.

This effect would result in the incorporation of up to 200,000 new companies, as well as the creation of up to 8.1 million jobs throughout the region. Furthermore, improving the performance of European startups by fostering their success could create significant wealth and more than double the current market capitalization of startups, raising the combined value from $2.3 trillion to $5.6 trillion. Dollars. This would also result in a total market capitalization of up to 3.5 times the current value of Germany’s DAX (Exhibit 5).



 Annex 5

There is significant economic potential in Europe’s startup ecosystem relative to its status quo.

Local successes offer a set of best practices for European markets

By looking at pockets of success within Europe – individual countries that have managed to excel in their entrepreneurship – our analysis has distilled ten key priorities that comprise a set of best practices within a given business ecosystem.

European countries can significantly improve the success of their individual startup ecosystem by following best practices that have been key drivers of selected successes seen across Europe.

These practices address core areas of the startup ecosystem, including research and development, talent, regulation, capital investment (both quantity and source), and leadership and accountability.

They encompass measures to enhance human capital, increase the availability of critical financial capital, and drive the technological backbone of the ecosystem, while laying the foundation for successful entrepreneurship.

If applied individually, these practices could propel each and every startup ecosystem to new levels. To implement them, the commitment of local stakeholders, including entrepreneurs, investors and local authorities, will be key.

Together, these practices foster successful company formation and scaling and can propel individual startup ecosystems to a new level.

  1. Build the national talent portfolio. Several initiatives could increase the number of potential entrepreneurs, including startup incubators and entrepreneurship curricula at universities. Oxford University Innovation and Cambridge Enterprise in the UK are examples of institutions that foster entrepreneurship and help equip innovative-minded people with the skills needed to start companies.
  2. Pave the way for international talent. Attract international talent by offering fast, unbureaucratic visa processes for international talent along with founder- and employee-friendly ESOP regulations, including reduced taxes (capital gains) and stock options, for example, as provided by the Estonia startup visa .
  3. Promote the development of the best technology. By ensuring sufficient R&D spending, markets can make critical investments in technology development. By designing competitive access to funds, countries can promote regional innovation and business centers focused on selected technologies or sectors, such as the “Trust Valley” artificial intelligence center in Switzerland.
  4. Encourage investment. Tax incentives, such as those offered by SEIS and EIS in the UK, can boost both early and late-stage private venture capital investments, giving startups the capital they need to launch and, crucially, climb.
  5. Expand the set of financing sources. Allow institutional funding sources, such as pension funds or universities, to commit venture capital investments to increase the availability of domestic capital, as enacted by Swedish pension fund regulations.
  6. Show a clear political commitment. Local authorities can boost the country’s startup ecosystem by showing clear commitment and accountability from the government/senior policymakers to fuel the trust of ecosystem stakeholders.
  7. Establish leaders. Supporting emerging champions to grow successfully will create role models that replenish the ecosystem with investments and expertise, comparable to the Swedish founder community.
  8. Define a vision. Set clear priorities and define a vision with concrete objectives, regular performance monitoring and initiatives tailored to identified problems, as presented by La French Tech in France.
  9. Create responsibility and ownership. Require clear ownership for the execution of the startup ecosystem strategy and an “account management” system to support emerging champions, similar to the La French Tech initiative in France.
  10. Reduce bureaucratic obstacles. Facilitating the process of starting a business through digitization and fast, simple and low-cost administrative processes, such as e-business registration in Estonia, lowers the threshold and cost for entrepreneurship.

A three-part “pan-European” strategy can remove barriers to startup success and promote a stronger ecosystem

In a simpler picture, a more competitive Europe would emerge as a direct result of individual countries “simply” adopting these best practices and finding that their startup ecosystems have begun to reflect the successes of the countries that are already leading the pack.

Of course, the landscape in Europe is far from simple, and the complexities of a region that is unified in many ways but highly diverse in others can be barriers to overall success.

To this end, we offer three high-level strategies, largely rooted in cross-border communication and regulation, that seek a level of “pan-European” harmony that facilitates the growth of startup ecosystems while recognizing and maintaining uniqueness. of individual companies. markets.

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Promote scale through defragmentation in regulations and resources

Reducing fragmentation through harmonized cross-border regulations and pooling of resources can boost business creation and expansion across Europe.

To drive harmonization and position Europe as an attractive talent market, there are two key levers: first, boost the European single market by developing a single European corporate rulebook as a “regime number 28” for high-quality companies. growth, including driving the harmonization of rules for taxes, business regulation, labor standards and administrative processes; Second, Europe should redouble its efforts on favorable labor regulations to attract and retain highly skilled talent, for example by creating world-class ESOP regulations, similar to those in the Baltic countries.

Furthermore, pooling resources, especially pooling public funds for innovation through competitive grant allocation, can support the creation and expansion of international technology supercentres.

This may be further boosted by an easing of regulations for institutional investors, especially pension funds.


Create a level playing field across Europe

Providing a safe space for European startups to grow before competing in the global market will support young companies in their plans to scale alongside large corporations and compete internationally.

To establish such a support and protection system, large corporations should deploy themselves more as support structures than as competitors.

Within this model, for example, they would offer startups access to their networks. Furthermore, to reduce the burden of high fragmentation and competition within Europe, regulating competition with international players will be key to offering a safe space for European startups in developing a global presence.

Finally, to support such changes and drive the cross-border scaling effort, a single point of contact at the transnational level is needed. This position would also help create clear accountability and maintain open communication in the evolution of the European startup ecosystem.

Take the rhythm

Speed is important for the success of a startup. Instead of passively focusing on preventative consumer protection from new technologies, Europe should focus on a solutions-oriented regulatory approach to help European startups shape critical technologies and boost the region’s innovative footprint.

This is in line with the implementation of an accelerated approval process for technological innovation similar to the European Medicines Agency’s fast track. Taking a proactive approach to disruptive technologies will be key to Europe’s success as an engine of innovation.

Taken together, we see significant potential that can be unlocked in Europe, both by improving the performance of individual startup ecosystems and by addressing the systemic obstacles characteristic of the region.

Members of the European startup ecosystem can learn a lot from each other and then implement models, initiatives and regulations that make it even easier to launch and grow successful startups.

Close collaboration of national and regional stakeholders, including entrepreneurs, investors, policymakers, government officials and non-governmental organizations, could help lay the foundation for this success. Now is the time to learn from each other and break down existing borders, finally allowing European startups to thrive internationally.





London is second only to Silicon Valley as the world’s best startup hub


The following contribution is from Bobby Hellard who is ITPro’s Reviews Editor and has worked at CloudPro and ChannelPro since 2018. During his time at ITPro, Bobby has covered stories for major technology companies including Apple, Microsoft, Amazon and Facebook , and regularly attends industry-leading events. such as AWS Re:Invent and Google Cloud Next.

Bobby primarily covers hardware reviews, but you’ll also recognize him as the face of many of our laptop and smartphone video reviews.

The capital tied with New York in the global ranking of Startup Genome

London is second only to Silicon Valley as the best place for startups to thrive, according to a definitive ranking of international tech hubs.

At Climate Aligned they are developing the first artificial intelligence platform designed to integrate data on sustainability, ESG and climate factors applicable to debt investment decisions in a single application



Investment in UK tech sector hits record £13.5bn in 2021

The UK capital tied with New York in Startup Genome’s 2021 Global Startup Ecosystem Report. London was also well ahead of the next highest European city on the list, Paris, which ranked 12th.

The Global Startup Ecosystem report ranks the 140 leading tech hubs around the world and estimated the value of London’s startup ecosystem at more than $142 billion.

Despite a turbulent year, the UK capital, along with the other four cities (Silicon Valley, New York, Beijing and Boston) maintained their positions at the top of the rankings.

The report was published for London Tech Week and the annual event saw plenty of positive news about the UK startup ecosystem. In terms of investment, the sector was reported to have generated more in the first six months of 2021 than in all of 2020. In turn, the country is experiencing a greater availability of technology-related jobs, with London being home to the largest number.

Fintech was identified as a particular strength for London, with unicorn startups such as Revolut and Wise making the headlines, but there was also plenty of praise for startups that had made the most of the pandemic, such as virtual events platform Hopin.






Next, the contribution of Startup Genome, which is the world’s leading innovation ecosystem development organization, and has worked with more than 160 economic and innovation ministries and public/private agencies in more than 55 countries. It works to catalyze startup success and ecosystem growth and ensure that all cities and countries capture their fair share of the new economy.

It has evidence-based research, advisory and ecosystem scaling programs that draw on global experience with the world’s largest AI-curated startup dataset and proprietary instruments developed from more than a decade of primary research.

Orbio Earth, a German climate technology startup. They are building the leading methane intelligence platform for the energy and financial sector



London’s tech scene: a world-class ecosystem competing on a global scale

Technology hubs are emerging around the world, as the industry and demand for talent continues to grow and the way we work evolves towards a more seamless hybrid experience. But few cities can boast of having all the necessary ingredients to become world-class technology centers.

London is one of the few that can do it. The city’s tech sector continues to go from strength to strength and London is now one of the world’s leading tech hubs.

In 2021, the enterprise value of London startups, through initial public offerings or acquisitions, soared to a record $88 billion.

Although 2021 was an unparalleled year for startup investment around the world, London stands out. London-based companies raked in £25.5 billion ($33.3 billion) and 20 new unicorns were created here in 2021. Additionally, in March 2022, the UK tech scene was valued at $1 trillion, a milestone shared with the United States. United States and China.

This growth further cements London’s position as a mature global technology hub with a unique combination of factors that foster innovation.

Let’s delve into some of the main reasons why London is an ideal place for businesses to grow.

These include:

– access to investment.

– the existing technological ecosystem.

– a well-established history of innovation.

– a highly qualified workforce.

– a consumer market open to new experiences and technologies.

London’s tech gold rush

Access to investment is one of the main drivers of London’s tech boom. In particular, late-stage investment is increasing. Mega rounds (rounds over $100 million) are becoming the norm, with London set to triple its growth in 2021.

Fintech company Revolut, clean energy provider Octopus and online events platform Hopin have all raised significant rounds of funding over the past year.

More and more private equity firms have opened offices in London to be closer to their UK and EU client base.

US-based Sequoia and Expa are examples of venture capital firms attracted by the city’s potential. Startups benefit from the proximity of a large number of venture capital funds looking to invest in the next potential unicorn or “corn of the future.”


The London ecosystem also benefits from UK government incentives for technology and the presence of accelerators.

An example of a government-led initiative is Innovation Funding, available to UK-based companies, which provides funding for research, testing and collaboration with other organisations. Innovate UK awarded grants worth £3.1 billion ($3.9 billion) during 2020-21 and had an award rate of 21% during the same year.

In the latest edition of the US News Best Countries Index, the United Kingdom ranked 8th, with particularly high scores in areas that are relevant to technology and business, including agility, connectivity with the rest of the world, the educated population, entrepreneurship, quality of digital infrastructure and legal framework.

Eileen Burbidge, partner at London venture capital firm Passion Capital, says: «It’s fantastic to see that London tech companies are attracting large volumes of capital at all stages of the funding process as a sign that our tech ecosystem is truly flourishing and our entrepreneurs are in second place. none.»

Back Market, a market for refurbished electronic products born in France that has raised more than a billion dollars since its creation, promotes a circular economy, reduces electronic waste and saves energy, resources and rare materials



Strength in fast-growing sectors

The city’s strengths as a technology hub make it an ideal location for startups in fast-growing sectors, including Fintech, Cleantech, Edtech and Proptech.

As the impact economy grows, so does the number of impact-focused startups – those that aim to make positive, measurable changes to social and environmental issues.

Investment in UK impact startups increased nine-fold in the period between 2014 and 2019, with cleantech and climate companies attracting the most funding.

A magnet for skills

Together with the nearby university cities of Oxford and Cambridge, both less than two hours from the capital, London is part of the so-called Golden Triangle of qualified talent. London is home to four of the world’s top 40 universities and offers unparalleled access to world-class talent and research.

London is also the most attractive city for digital talent. A global survey by Boston Consulting Group shows that London remains the first choice for tech workers willing to relocate to a city in a different country. The city’s multiculturalism and diverse knowledge of markets, languages and cultures are ideal for companies looking to scale globally.

Tech savvy, conscious consumers and excellent market access

Many of London’s technological strengths would be of little relevance were it not for its tech-savvy and conscious consumer market. London is a testing laboratory for many innovative ideas and industries, from music and entertainment to fashion and retail. Londoners are open to new experiences and welcome the integration of technology into everyday products and services.

A growing strength on the consumer side is that people in the UK are becoming more conscious of how they spend their money and prefer companies, services and products that are sustainable and ethical.


An Accenture study found that a third of UK adults expect brands to report on the environmental impact of their businesses

Additionally, London offers excellent access to global markets. As well as having easy access to UK and European consumers, startups in London can benefit from dedicated support and connections in the city’s cosmopolitan ecosystem when looking to scale to international markets. For example, Tech Nation, a UK growth platform for technology companies and leaders, and Startup Genome conducted an Asian market expansion study.

The data-driven analysis of Asian ecosystems aimed to help UK-based companies assess the best ecosystem for geographic market expansion.

It found that Singapore was the most favorable location, thanks to its connectivity and excellent soft landing support, and that the UK extensions are also well positioned to access Seoul, Tokyo, Melbourne and Sydney.

For tech startups and investors, London has a lot to offer

London is a global epicenter of technology. Its rapid and strong growth in the sector, particularly during the challenging landscape of the COVID-19 pandemic, is a testament to the city’s ability to adapt, innovate and reinvent itself.

When combined with the amount of excellent talent and strength in fast-growing sectors, London’s tech ecosystem will only improve.





22 Climate Tech Startups to Watch: According to Investors

The following contribution corresponds to Alessandro Ravanetti who is a writer and editor based in Barcelona. He helps startups with their content strategy, curates Techstars’ fintech newsletter Startup Digest, serves as an independent expert for EU projects, and advises aspiring changemakers with Bridge for Billions.

In the dynamic European climate technology landscape, a wave of excitement is building around pioneering startups that are blazing new trails towards sustainability.

These companies are not only pushing the boundaries of technology, but are also driven by the mission to address the challenges of climate change, propelling us towards a more sustainable future.

For those interested in staying up to date with the latest innovations, the question arises: amidst the wide range of over 30,000 climate tech startups active in this space, which one really stands out? To answer this, we turned to those in a privileged position: the prominent investors and venture capitalists who are most active in this space.

With all those conversations with founders and their teams, the due diligence done on the most promising startups, and in some cases also the investments made, they are certainly, therefore, more informed than most of us about what is happening in the market.

Here, we have sought the insights of those specializing in climate technology investments, from the energy transition and the circular economy to sustainable and food production, but also climate finance technology and the blue economy.

Specifically, we asked them which European climate tech startups they are particularly excited about and what sets these companies apart, whether it’s their technology, their mission, or their potential impact.

But enough with this introduction, now it’s time to focus our attention on your ideas!

In the processing industry, especially in older plants, asset integrity is crucial. Poor asset integrity can lead to inefficient energy consumption, and asset failure causes safety threats and environmental pollution



Irena Spazzapan, CEO of Systemiq Capital

Systemiq Capital is a London-based venture capital fund that invests in early-stage climate technology startups.

One interesting place where we see untapped (or at least less recognized) potential is the data center. We’ve looked at companies developing custom, low-power ASICs for big data applications and companies that are rethinking public cloud load balancing to account for hour-to-hour variations in the carbon intensity of hub power sources. specific dates. Two companies that we think are doing really interesting things are Corintis and ONiO.

Corintis, spun off from EPFL in Lausanne, is developing a new approach to cooling high-power processor cores. Data centers are one of the world’s largest users of energy and water due to the unfortunate tendency of silicon-based semiconductors to become very hot and incinerate if not aggressively cooled. More effective and precise cooling is one of the few strategies that exist to moderate the resource intensity of this hugely important market.


If Corintis focuses on the highest-end chips that power public cloud and AI models, ONiO focuses on the opposite end of the spectrum.


Oslo-based company ONiO has developed microcontrollers that consume so little power that they can collect everything they need from their environment, running indefinitely without needing to change or charge batteries.

These are not the CPUs of your phone or Xbox. These are the chips that control your TV remote, or the wireless keyboard, or the sensors in fire extinguishers and in the agricultural fields that enable our digital lives.

With their chips, a little movement, some weak indoor light, or just background RF radiation may be enough to banish the AA battery for good.


Melina Sánchez Montañés, Principal Investor and VP Impact of AENU

AENU is an impact fund that invests in early-stage climate technology and social impact companies based in Europe.



I am particularly excited about the impact and commercial potential of Agreena, the number one regenerative agriculture platform in Europe, which is part of our portfolio at AENU.

About 45% of the Earth’s land is used for agriculture. Most agricultural land has lost up to 30% of its carbon due to unsustainable land management practices, resulting in higher costs and lower yields for farmers. To address these challenges, regenerative agriculture has become one of the biggest biodiversity levers to achieve global net zero emissions goals, with a potential impact of 1.8-3 Gt CO2e/year, while ensuring sustainability. long-term finance for farmers.

Agreena is dedicated to enabling farmers to transition from traditional to regenerative agriculture. They do this by monitoring, reporting, verifying (MRV) and issuing soil carbon credits and providing fintech products that help overcome the transition risk of switching to regenerative agriculture.

These two levers provide a powerful economic incentive for farmers to unlock millions of hectares under management around the world with gigaton-scale carbon sequestration potential.



 Yair Reem, partner at Extantia Capital

Extantia Capital is a Berlin-based venture capital firm putting climate first and accelerating the path to a decarbonized world.

I am very excited about Reverion, a spin-off company from the Technical University of Munich and one of our portfolio companies. Reverion displaces fossil fuels by unlocking the full potential of biogas as a clean, renewable and reliable source of baseload electricity.

Its technology is twice as efficient as the current one. It has a high degree of flexibility, which opens up a wide range of applications that until now were not economically viable. The global deployment of its solution will avoid emissions of hundreds of megatons of CO2 per year.

NatureMetrics is solving the problem of how to adequately measure and protect biodiversity, which is key to solving climate change. The company has the largest eDNA database in the world and launched the first digital biodiversity monitoring product during COP15



Another portfolio company I want to mention is MAGNOTHERM. Based in Darmstadt, Germany, it is a young and exciting company reinventing the refrigerator. And how often do we get the opportunity to reinvent something that’s been around for 200 years?

The impressive team behind MAGNOTHERM, co-led by Timur Sirman and Maximilian Fries, has developed magnetic cooling technology that increases energy efficiency by 40% while eliminating the use of harmful gaseous refrigerants. Its technology has no global warming potential, is non-toxic and does not use explosive compounds.


Samia Qader, Senior Director at Climate VC

Climate VC is a UK-based EIS fund and syndicate investing in pre-seed and seed climate technology companies.

I pick two of our portfolio companies that I’m particularly excited about: Preoptima and Climate Aligned.

Preoptima is the world’s first early-stage decarbonization platform for real-time carbon mitigation and management in buildings. The built environment produces a staggering 37% of global emissions today, and the EU is requiring all member states to regulate embodied carbon within the next three years!

By offering a unique, iterative approach to low-carbon building design, Preoptima delivers carbon reductions of up to 40% and has the potential to avoid hundreds of megatons of carbon emissions on a global scale.

The company is led by thought leaders in the embodied carbon space, with 70 years of collective experience in the built environment and over 100 scientific publications in the area of reducing carbon emissions from buildings, placing it uniquely positioned to address this issue. They have already secured pilots with some of the corporate design and engineering heavyweights.


Another company I want to mention is Climate Aligned.

They are developing the first artificial intelligence platform designed to integrate data on sustainability, ESG and climate factors applicable to debt investment decisions in a single application. Its product will enable institutional investors to find new opportunities that accelerate financing aligned with climate and emissions goals, addressing one of the biggest obstacles to accelerating the green transition.

The impact is enormous: S&P assessed that investment in green bonds (the company’s initial target market) was approximately 500 tCO2e for every $1 million invested average avoided emissions intensity across all geographies and types of green bonds.

The team is led by two founders who have experience in climate bonds, as well as deep experience in machine learning, having previously founded a successful machine learning company.


Romain Díaz, founder and CEO of Satgana

Satgana is a Luxembourg-based climate technology venture capital firm investing in the future of the Earth.

A biased response is an example from our portfolio: Orbio Earth, a German climate technology startup. They are building the leading methane intelligence platform for the energy and financial sector.

We led their €600,000 pre-seed investment last year, and since then they have joined Y Combinator, developed unique technology, and experienced impressive traction.

We’re particularly excited about what they’re building, particularly given the fact that reducing methane leaks is seen as one of the most immediate fruits in the climate mitigation effort, equivalent to taking all cars off the roads globally. .

A less biased answer is Back Market, a refurbished electronics marketplace born in France that has raised more than $1 billion since its creation. Its solution promotes a circular economy, reduces electronic waste and saves energy, resources and rare materials.

More broadly, we are constantly looking for mission-driven founders who create technology solutions whose business model inherently correlates business development with positive impact for the planet at scale.

This is true across industries that need to undergo profound change to achieve our sustainability goals, such as transportation (e.g. electric mobility, sustainable aviation fuels, etc.), food (e.g. reducing food waste , alternative proteins, etc.), agriculture (e.g. regenerative agriculture), buildings (e.g. alternatives to cement) and energy (clean energy solutions, methane reduction, etc.).

Max Ter Horst, managing partner of Rockstart Energy

Rockstart Energy is an Amsterdam-based venture capital fund that invests in early-stage startups focused on driving the energy transition. Two companies that stand out at the moment are Fast and Senergetics.

Fast-TrekFast Trek is one of the companies in our portfolio that we are excited about. With what they have built, they can reduce interior congestion, pollution, road erosion and long-distance travel costs.

The business differentiates itself from traditional optimized routing solutions by looking at the network as a whole, finding new routes and ways to save on total trips made.

The core team, which has a proven business track record, is already in close discussions with major global logistics and consulting companies.


Another interesting startup we spoke to is Senergetics

In the processing industry, especially in older plants, asset integrity is crucial. Poor asset integrity can lead to inefficient energy consumption, and asset failure causes safety threats and environmental pollution.

This Dutch company is developing a cutting-edge photonic sensing technology company that specializes in providing continuous, non-intrusive monitoring services for companies operating in process industries. One year after participating in High Tech XL, this entrepreneurial and technological team shows potential.

Carlos Fisch, Partner of Seaya Andromeda

Seaya Andromeda is a climate technology venture capital fund

Based in Madrid that addresses global climate challenges through technology.

The company I want to mention here is called Enode. It is a Norwegian startup that addresses one of the key problems we currently face in climate technology: connectivity. Historically there have been significant investments in both hardware and software.

However, with this rapid pace of penetration, there is a huge need to create a connectivity layer that allows us to benefit from ecosystems in various industries, such as home energy, in this case.

Enode is at the center of this problem, creating APIs to facilitate this connectivity and building a digital infrastructure that enables a zero-carbon energy system.


Christian Jølck, partner and co-founder of 2150

2150 is a venture capital firm that backs technology companies that aim to shape the sustainable cities of the future.

He chose two European companies from our portfolio that are really interesting: NatureMetrics and 1komma5.

NatureMetrics is solving the problem of how to properly measure and protect biodiversity, which is key to solving climate change. The company has the largest eDNA database in the world and launched the first digital biodiversity monitoring product during COP15.

With a presence in more than 100 countries and 500 customers, NatureMetrics is growing rapidly with leading large multinational companies. The company is located on the outskirts of London and its founder, Kat Bruce, is a global leader in biodiversity.

1komma51komma5 is the fastest growing housing decarbonisation platform in Europe that has helped facilitate the energy transition in several European countries. What sets them apart is the exceptional team led by Philipp Schröder and supported by other very credible investors.

Secondly, their approach is different because they believe in having their own installers and streamlining the process of decarbonizing your home from start to finish. This venture could, over time, decarbonize millions of homes, resulting in a gigaton impact.

Pauline Wink, General Partner at 4impact

4impact is a venture capital fund based in The Hague that invests in European tech4good companies.

I’m particularly excited about our recent portfolio company, InfoTiles, a Norway-based water management company that uses data to detect drinking water leaks and optimize wastewater management.

This is a huge invisible problem that can literally mean the difference between life and death. «No water, no life.

Neither blue nor green,” said legendary oceanographer, deep-sea explorer and field researcher Dr. Sylvia Earle.

It will not be possible to live within the limits of the Earth if we do not protect the water and life that covers 71% of the Earth’s surface! Water is, as we all know, a key element in human existence and civilization. However, up to 23% of water is lost in the infrastructure of EU countries. We take water for granted because it is there and it is not (yet) expensive. However, this complacency belies the urgency of the situation.

Recently, at the UN water summit, experts raised the alarm about a looming global water crisis.

It is projected that by the end of this decade, the demand for freshwater will exceed its supply by a staggering 40%. I had firsthand experience with this problem when I visited a lake recently, and it was at its lowest level in two decades.

This is already a problem and we need to reduce our water use and improve infrastructure to mitigate these challenges.

The team that has created InfoTiles has a unique experience in hydrology that combines with its technological knowledge to offer a proposition that offers significant financial savings to its clients but also saves massive amounts of the most precious resource: water!


Carlos Esteban, Partner at Faber

Faber is a Lisbon-based venture capital fund that invests in early-stage teams innovating at the intersection of science and technology to drive digital transformation and climate action.

We are excited about all of the companies in our portfolio. But here we would like to highlight 1s1 Energy.

1s1-Energy1s1 Energy is a Portuguese and American materials science company developing new, more efficient chemistry for fuel cells and electrolysis membranes for the production and utilization of green hydrogen.

There is a lot of interest in hydrogen to replace fossil fuels and reduce CO2 emissions. Green hydrogen produced in electrolyzers using water and electricity from renewable energy could be used, for example, to decarbonize heavy road transport, shipping and steel production, among other industries.

The energy stored in the form of hydrogen can be used in clean combustion or to produce electricity in a fuel cell. However, current electrolyzers and fuel cells have poor efficiency and durability, which could limit their adoption.

1s1 has a very strong patent portfolio and, in initial testing, electrodes and membranes made from its materials have the potential to be more durable and efficient.

They will develop and manufacture their line of electrolyzers. Still, its materials could also be licensed to other companies, for example, for the improvement of fuel cells for different applications. Ultimately, better electrolyzers and fuel cells will produce and use hydrogen more efficiently and economically, accelerating its adoption rate and facilitating a green transition.


Daniel Skavén Ruben, Solvable Union

Solvable Syndicate is made up of a group of investors backing early-stage startups advancing a sustainable and nutritious food system.

There are so many climate tech startups one could name. Big, small. There’s a lot going on. But if I can only select one or two, I say NitroCapt and Meadow.

NitroCapt produces fossil-free fertilizers for a move towards sustainable agriculture

Considering that synthetic nitrogen fertilizers emit more than 2 gigatonnes of carbon emissions per year, it is quite easy to understand that we urgently need solutions to decarbonize agriculture. NitroCapt and other companies in the sector (Nium, NetZeroNitrogen, etc.) are working to address this issue.

The second company I want to mention is Meadow

Plastics have a huge impact on emissions, and Meadow is replacing single-use plastic containers (used, for example, in personal care, home care and food) with aluminum cans used as refill cartridges infinitely recyclable.

For full disclosure, I am an angel investor in Meadow and an advisor to NitroCapt.

Henry Hamilton, chief investment officer at Mercia Ventures

Mercia Ventures is a UK-based venture capital fund that invests from early stages to scale-up and partners with entrepreneurs for the long term.

Energy networks are behind schedule, plagued by limitations from variable loads and curtailment challenges, while the chorus and economic arguments are getting louder for more low-carbon energy sources.

While the number of renewable energy assets has increased dramatically, connecting these assets to distribution networks and managing loads efficiently is a challenge.

Two early-stage startups, Axle Energy and Electron, are meeting this challenge with their industry-leading software solutions.

Axle Energy, founded by a former Bulb Energy colleague, connects electric vehicles and home energy devices with flexible electricity markets, helping to reduce costs (by more than 25%) and CO2 emissions for its customers. It uses machine learning to enable energy providers and hardware manufacturers to monetize the flexibility of energy assets while improving grid stability.

Axle’s software can shift energy use to where it is cheaper and greener and is set to unlock a huge market opportunity – potentially over 11GW of flexible capacity for the UK energy system by 2030.

InfoTiles, a Norway-based water management company that uses data to detect drinking water leaks and optimize wastewater management. This is a huge invisible problem that can literally mean the difference between life and death. «No water, no life



electron Electron’s multi-market platform, ElectronConnect, enables distributed energy resources to exchange flexibility and provide flexibility services in local energy markets through its workflow solution, thereby enabling congested network capacity to be economically allocated.

Flexibility is key to unlocking renewable generation and will provide 24/7 access to zero-marginal-cost, zero-carbon energy.

Electron co-founders Jojo Hubbard and Paul Ellis are leaders in their field and are driving the conversation around energy innovation in the UK and beyond.

Maximilian Schwarz, founder and general partner of Nucleus CapitalMaximilian-Schwarz

Nucleus Capital is a Berlin-based venture capital fund providing early capital to purpose-driven entrepreneurs solving systemic challenges for planetary health.

Here are two companies from our portfolio that I want to highlight: Ucaneo and Repath.

Ucaneo mimics the ability of the human lung to remove CO2 directly from ambient air

The company combines biocatalysts, electrochemistry and materials science to develop a biomemetic direct air capture technology. The final product will be deployed in modular, container-sized units to remove CO2 anywhere in the world in an energy-efficient manner.

Repath has a SaaS solution designed to help energy companies manage physical climate risks for specific energy asset vulnerabilities and meet their reporting needs, as well as empower P.E. and infrastructure investors to transparently manage risks and make more profitable investments.

Its approach is science-based and its reduced regional model encompasses more than 400 climate simulations to quantify risk factors globally.


Esta información ha sido elaborada por NUESTRA REDACCIÓN