Europe produces more startups than ever, but true global players remain scarce, according to an analysis by Mustafa Torun, senior data scientist at Invest-NL. European companies are increasingly successful in securing their initial funding rounds but fall behind when it comes to attracting growth capital.
Torun analysed Dealroom data on companies founded between 2010 and 2025, divided into three stages: launch to first investment, early funding to Series A, and validation to growth financing. The results show a clear gap compared with the US. European startups secure Series A and Series B rounds less frequently and later than their American counterparts. Even well-funded European startups are less likely to scale.
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The lag is explained by a combination of fragmented markets and a shortage of later-stage capital. European growth rounds are smaller, progress is slower, and the momentum needed for global expansion is often lacking. In contrast, US investors operate in deeper markets that support follow-on investments more quickly and at larger scale.
Torun emphasises that the issue is not the number or quality of startups, but their scalability. Europe has talent and innovation, but the ecosystem provides insufficient support to take startups from early-stage to global player. The so-called 'scaleup gap' remains a structural bottleneck for the European entrepreneurial landscape.
Source: MT/Sprout
