DSA Fundfest: 8th of October <\/h2>
Funded or got funded last quarter? Register now for your free and exclusive spot at FundFest! One of the Zeki report’s most notable findings is the recent plateau in deep-tech startup formation across Europe and North America. Since 2020, new deep-tech company formation has slowed significantly, with only 13 new companies formed in 2023 compared to the peak of 566 in 2017. Despite government investments, such as the U.S. Inflation Reduction Act and Europe’s various national tech frameworks, the expected boom in new startups has not materialized.<\/p>\n\n\n\n On average, it takes 11 years for a North American deep-tech company to grow into a large company, compared to 20 years for a European startup.<\/p>\n<\/blockquote>\n\n\n\n However, while the rate of new company formation is similar in both regions, there is a stark difference in their scaling ability. The U.S. is leading the race, with startups scaling twice as fast as their European counterparts. On average, it takes 11 years for a North American deep-tech company to grow into a large company (250+ employees), compared to 20 years for a European startup.<\/p>\n\n\n\n The U.S. dominance in scaling is mainly due to its companies\u2019 access to capital and more enormous appetite for risk. American startups benefit from early funding, a more aggressive venture capital landscape, and a greater likelihood of acquisition by larger companies once they achieve free cash flow. This quick scaling minimizes the number of small deep-tech companies in the U.S., with only 52% of companies classified as \u201csmall.\u201d In contrast, Europe has a higher concentration of small companies, which sometimes struggle to transition to larger enterprises due to limited access to capital and a more cautious approach to acquisitions.<\/p>\n\n\n\n Over the past decade, the U.S. and Europe have attracted a net influx of global talent. European companies have attracted more advanced-skilled talent overall (14,937) than North American companies (13,659). However, this success comes with a caveat. European startups hold a more significant concentration of advanced-skilled talent, often involved in genuine innovation, but may also work for \u201czombie startups\u201d that rely on government grants for survival.<\/p>\n\n\n\n The U.S. has a more diverse approach to talent acquisition, drawing talent from multiple regions, with India being a key source. Despite a decline in the hiring of European nationals in recent years, American companies continue to pull in top talent globally, which feeds into their deep-tech solid ecosystem. Moreover, North America\u2019s growing reliance on lower-cost, early-career hires signals a shift in hiring preferences as companies seek to free up funds for core engineering talent and rising capital expenditure costs, especially in AI-related fields.<\/p>\n\n\n\n Engineering biology companies have outnumbered those in all other sectors, including AI, in both Europe and North America. The report notes 1,783 engineering biology companies in its data, compared to 1,724 in AI. However, these companies face challenges in reaching scale. Even as the number of small companies increases, it typically takes 15 years for these firms to grow into large enterprises.<\/p>\n\n\n\n Infusing AI talent into engineering biology could alter the landscape, leading to hybrid companies with new business models. Europe, especially France, is gaining recognition for fostering small and medium-sized engineering biology companies through solid research facilities and collaborative ecosystems. The French Health Innovation Plan 2030, which focuses on biotherapies and medical technologies, has positioned the country as one to watch in the engineering biology sector.<\/p>\n\n\n\n What also stands out in the report is the sharp decline in talent attraction in sectors around green energy:<\/p>\n\n\n\n A key takeaway from the report is the limited impact of government-led industrial policies on deep-tech company formation and scaling. Despite significant funding initiatives across Europe and the U.S., including the Chips Act and various European digital strategies, the expected wave of new deep-tech companies has not materialized. The deep-tech talent market appears more influenced by capital availability, market consolidation, and corporate risk appetite than government intervention.<\/p>\n\n\n\n Germany\u2019s situation underscores this point. Despite being the third-largest economy globally, it has a relatively low number of deep-tech companies, mainly due to lower venture capitalist investment. The German government\u2019s recent decision to spend \u20ac30 billion on startups is only beginning to show results, suggesting that large-scale policy initiatives take time to impact the market.<\/p>\n","protected":false},"excerpt":{"rendered":" The race to attract top talent in deep tech is intensifying between Europe and North America. While government investment in Europe has spurred some growth in the sector, U.S. companies continue to scale faster, attracting a larger pool of advanced-skilled talent. The deep-tech sector now faces new challenges, from talent scarcity to the pressure of […]<\/p>\n","protected":false},"author":1568,"featured_media":506186,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[83950],"tags":[33291,5246,2886,43309],"location":[70256,76794],"article_type":[60595],"serie":[],"archives":[],"internal_archives":[],"reboot-archive":[79717],"class_list":["post-488654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chip","tag-deep-tech","tag-europe","tag-startups-en","tag-united-states","location-eu","location-united-states","article_type-analysis","reboot-archive-chip"],"blocksy_meta":[],"acf":{"subtitle":"Despite similar numbers of new startups, U.S. companies scale twice as fast as their European counterparts in the ongoing deep-tech talent war.","text_display_homepage":false},"author_meta":{"display_name":"Bart Brouwers","author_link":"https:\/\/ioplus.nl\/archive\/author\/brewbart\/"},"featured_img":"https:\/\/ioplus.nl\/archive\/wp-content\/uploads\/2024\/09\/brewbart_a_picture_of_the_War_for_Talent_between_Europe_and_the_3bf16b69-1341-4fc7-b377-a9fb8e1b835a.png","coauthors":[],"tax_additional":{"categories":{"linked":["CHIP+<\/a>"],"unlinked":["CHIP+<\/span>"]},"tags":{"linked":["deep tech<\/a>","Europe<\/a>","startups<\/a>","United States<\/a>"],"unlinked":["deep tech<\/span>","Europe<\/span>","startups<\/span>","United States<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 2 years ago","modified":"Updated 2 years ago"},"absolute_dates":{"created":"Posted on October 1, 2024","modified":"Updated on October 1, 2024"},"absolute_dates_time":{"created":"Posted on October 1, 2024 3:00 pm","modified":"Updated on October 1, 2024 3:00 pm"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/488654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/users\/1568"}],"replies":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/comments?post=488654"}],"version-history":[{"count":0,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/488654\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media\/506186"}],"wp:attachment":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media?parent=488654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/categories?post=488654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/tags?post=488654"},{"taxonomy":"location","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/location?post=488654"},{"taxonomy":"article_type","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/article_type?post=488654"},{"taxonomy":"serie","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/serie?post=488654"},{"taxonomy":"archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/archives?post=488654"},{"taxonomy":"internal_archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/internal_archives?post=488654"},{"taxonomy":"reboot-archive","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/reboot-archive?post=488654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
October will see the third edition of FundFest hosted by the Dutch Startup Association<\/a> (DSA). DSA launched FundFest\u2014each quarter, startups and scaleups that received funding during that period and investors come together. For the third edition, DSA and Innovation Origins team up to host simultaneous events in both Amsterdam and Eindhoven. We invite all startups that secured funding in the past quarter, as well as the investors who made those investments, to participate!
\ud83d\uddd3\ufe0f October 8th, 2024 | 5-7 p.m.<\/strong>
\ud83d\udccdCarbyon: High Tech Campus 32, Eindhoven\u00a0<\/strong>
\ud83e\udd1d\ud83c\udffd Investors and\/or companies who secured funding in Q3 in NL\u00a0<\/strong>
\ud83c\udfab<\/strong> <\/strong><\/a>https:\/\/www.eventbrite.nl\/e\/tickets-fundfest-2024-q3-eindhoven-venue-1026897346607<\/strong><\/a><\/p><\/div>\n\n\n\nStartup growth stagnation and scaling disparity<\/h2>\n\n\n\n
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![\"\u00a9](\"https:\/\/archive.ioplus.nl\/wp-content\/uploads\/2024\/09\/Screenshot-2024-09-29-at-10.30.08-1004x606.png\")
Talent supply and demand: Europe\u2019s mixed blessing<\/h2>\n\n\n\n
![\"\u00a9](\"https:\/\/archive.ioplus.nl\/wp-content\/uploads\/2024\/09\/Screenshot-2024-09-29-at-10.41.30-1004x753.png\")
Engineering biology leads but struggles to scale<\/h2>\n\n\n\n
Government policy vs. market realities<\/h2>\n\n\n\n