Compared to the US: How bad is the entrepreneurial environment in Europe?

Based on the same reliable business philosophy, what makes an American start-up more valuable than a start-up in Europe? Europe is becoming the Promised land, and several cradles of entrepreneurial activity and entrepreneurial potential are taking shape on the continent, but start-ups are often hampered by a lack of entrepreneurial investment or forced to move to the United States to continue their trajectory. This has plagued Croatian entrepreneur Yang Ilek (Jilek). Ad-net, head of the Internet advertising network-advertising network, has been disappointed and dissatisfied with the transatlantic gap in development opportunities for start-ups over the years. For those who do not realize the extent of the gap, he suggests the analogy: it's like a car race between the United States and Europe, with the same distance and stages. American cars get one-and-a-second amount of petrol (which has a larger funding scale) and can use highways. EU cars must use country roads (a market in the United States is relative to many markets in the EU). In addition, highways also have better road-guidance systems (with the help of VCs, regulatory frameworks), and those lucky EU start-ups are up to the third leg (acquired), while American start-ups can go to the four, fifth stages, and some even complete the game (IPO). "An entrepreneurial idea in Europe wants to compete on a global scale with the same American entrepreneurial vision, and they need the same amount of money." The fact is that European start-ups are averaging 50% less money than American start-ups. Yiliekede said. And this is the key to long-term financing. Sweden, which boasts one of Europe's most luxurious seeds and a-round financing, is a classic example. Streaming media music service platform Spotify, sandbox game "My World" (Minecraft) developer Mojang and popular hand tour "Candy smash Legend" (Candy Crush Saga) developer King of Digital entertainment Company (King Digital Entertainment) originated in Sweden. "American start-ups can be tested and transformed, and they can even make mistakes," he said. But European start-ups, with a 50% less capital, are unable to take the same level of risk. They have to be ' safe ', it takes more time and resources, and if they make a mistake, it's probably over for them. "The real frustration comes from the fact that Europe is making a big appeal to native entrepreneurs who are highly gifted," he said. Yiliekede, who started his first job as project manager at the first Croatian Internet advertising company, then came out of the business and launched the Croatian pogodak.hr. "In Croatia, as in every other country in the world, we have a hard-working, intelligent, innovative young entrepreneur who has an excellent entrepreneurial vision and uses very little money to build their projects, but when heWhen they needed further financing in Croatia, they were ' blocked against the wall '. So they packed up and left Croatia, most of whom would go to a start-up accelerator and if they arrived in the United States, they could achieve their goals. But many people are facing difficulties in their plans to travel to the United States. "Croatia has spawned a number of promising start-up projects, including the Rimac Motor Company (Rimac Automobili), which produces electric supercar, and the World startup competition in 2014 Competition is the top farm intelligent Cloud management software provider Agrivi, farm Cloud management service provider Farmeron and maternal and infant intelligent wearable products manufacturer Bellabeat. Now, these companies have moved to the United States. An important differentiation advantage of the American market is the fragmentation of the EU market. In Europe, a company that wants to use its local staff to cover the entire EU needs to set up 28 offices, and it faces a different tax regime and regulations. The venture capital industry in continental Europe is also fragmented. VCs can only help local start-ups, while those in the US are different, supporting a range of start-ups in a unification American market. In order to scale up properly and compete with other start-ups, the valuations of European start-ups need to be improved, but starting in smaller domestic markets means much less sentiment and income, and it is much more difficult to scale up across the EU market. "In Croatia, we don't have any local VC funds," Yiliekede said, "the closest thing to us is the-RSG capital of the Slovenian VC Fund." They are above the EU average in terms of the amount of money they invest in seed and a-round financing. But they can only cover a few of the most interesting projects that eventually move to the United States. "In order to get funding, I have to convince venture capitalists that I am capable of translating entrepreneurial ideas into reality," he said. To do this, they have to believe me, believe me, they must understand me, understand me, they have to spend time with me, and if I am not their next-door neighbour, then this is very difficult to do. "Another potentially bigger problem for Europe is the lack of an IPO for internet companies in Europe," he said. With little data to analyze, investors have become completely more risk averse. Instead, the US has more investment analysts, has more experience in technology investment and is more focused on performance growth. They are more aware of the risks associated with investing in technology companies and are pricing the risk accordingly. Yiliekede asked: "Which European IPO would be the most successful?" If I go to England or go to Germany, will the result be the same? No, because every EU country has a completely different regulatory environment. The European IPO market is also a fragmented market. "To find a solution,There is a need to unleash the potential of the entire EU market so that start-ups can scale up across the European market, gain better revenue and gather more popularity and reduce the risk to risk investors, who will raise the valuations of these start-ups. This is almost too extravagant a requirement, but Yiliekede is not willing to accept this status quo. He recently set up www.1000startups.eu and is inviting startups from all over Europe to enroll in the project. Through a concerted effort, the project aims to get the signatories to identify three key responses to the development of European start-ups. If it attracts 1,000 start-ups, the next step is to talk to the EU and lobby the EU to take action. "It will be an independent initiative by European start-ups that want to have a chance in Europe," he said. We have to try. The worst thing that can happen is that we fail and nothing changes. In this case, I will also start packing. ”