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European Start-up Hotspots: An Analysis based on VC-backed Companies

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Abstract

Through the perspective of VC-backed companies, this report describes the main locations of start-up activity in Europe, i.e. start-up hotspots. It aims at providing evidence on start-up activity in Europe and at describing the European VC activity over the last two decades. The study reports the following: • Europe receives 15% of global VC investments. After the dot.com hype, VC activity in Europe decreased and has never come close to the levels from 2000. VC funds have also moved away from seed to later stage of funding. • 28% of all European VC-backed companies are based in one of the 20 cities. Paris, London and Berlin lead the ranking of cities with the highest number of VC-backed companies in Europe. • The location of a start-up is likely to be one of the major factors influencing the amount of money it receives from VC funds and the number of funding rounds it goes through. • Majority of European VC-backed companies are up to 8 years old and have up to 100 employees. • The majority of VC-backed firms in Europe belong to the Business, Consumer and Retail industries.

Suggested Citation

  • Daniel Nepelski & Giuseppe Piroli & Giuditta De Prato, 2016. "European Start-up Hotspots: An Analysis based on VC-backed Companies," JRC Working Papers JRC101215, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:iptwpa:jrc101215
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC101215
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    1. Daniel Nepelski & Giuditta De Prato, 2015. "Corporate control, location and complexity of ICT R&D: A network analysis at the city level," Urban Studies, Urban Studies Journal Limited, vol. 52(4), pages 721-737, March.
    2. Garry A. Gabison, 2015. "Venture Capital Principles in the European ICT Ecosystem: How can they help ICT innovation?," JRC Working Papers JRC98783, Joint Research Centre (Seville site).
    3. Daniel Nepelski & Giuditta de Prato, 2014. "Key Findings and Implications of the European ICT Poles of Excellence Project," JRC Working Papers JRC85408, Joint Research Centre (Seville site).
    4. Christian Wichmann Matthiessen & Annette Winkel Schwarz & Søren Find, 2002. "The Top-level Global Research System, 1997-99: Centres, Networks and Nodality. An Analysis Based on Bibliometric Indicators," Urban Studies, Urban Studies Journal Limited, vol. 39(5-6), pages 903-927, May.
    5. Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," The Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July.
    6. Paul Gompers & Josh Lerner, 2001. "The Venture Capital Revolution," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 145-168, Spring.
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    1. Kraemer-Eis, Helmut & Botsari, Antonia & Gvetadze, Salome & Lang, Frank & Torfs, Wouter, 2017. "European Small Business Finance Outlook: December 2017," EIF Working Paper Series 2017/46, European Investment Fund (EIF).
    2. Kraemer-Eis, Helmut & Botsari, Antonia & Gvetadze, Salome & Lang, Frank & Torfs, Wouter, 2019. "European Small Business Finance Outlook: December 2019," EIF Working Paper Series 2019/61, European Investment Fund (EIF).
    3. Kraemer-Eis, Helmut & Botsari, Antonia & Gvetadze, Salome & Lang, Frank & Torfs, Wouter, 2018. "European Small Business Finance Outlook: June 2018," EIF Working Paper Series 2018/50, European Investment Fund (EIF).
    4. Kraemer-Eis, Helmut & Botsari, Antonia & Gvetadze, Salome & Lang, Frank & Torfs, Wouter, 2018. "European Small Business Finance Outlook: December 2018," EIF Working Paper Series 2018/53, European Investment Fund (EIF).
    5. Kraemer-Eis, Helmut & Botsari, Antonia & Gvetadze, Salome & Lang, Frank & Torfs, Wouter, 2019. "European Small Business Finance Outlook: June 2019," EIF Working Paper Series 2019/57, European Investment Fund (EIF).
    6. Daniel Nepelski & Marc Bogdanowicz & Federico Biagi & Paul Desruelle & Giuditta De Prato & Garry Gabison & Giuseppe Piroli & Annarosa Pesole & Nikolaus Thumm & Vincent Van Roy, 2017. "7 ways to boost digital innovation and entrepreneurship in Europe. Key messages from the European innovation policies for the digital shift project," JRC Working Papers JRC104899, Joint Research Centre (Seville site).

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    More about this item

    Keywords

    venture capital; start-ups; entrepreneurship;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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