To build a truly self-sustaining tech ecosystem, Europe must adopt policies that reduce its reliance on US funding and growth channels. Marietje Schaake’s recent call (Opinion, November 8) for a distinct European tech model highlights the urgency of going beyond start-up incubation to cultivate an environment where globally dominant players can thrive.
Though Europe generates more start-ups than the US, many of its most promising companies are lured across the Atlantic by a more supportive financial and regulatory landscape.
Nowhere is this more prevalent than the video gaming sector, which has struggled with shrinking investment, restrictive funding and a talent exodus to the US — drawn by greater investment prospects.
The recent surge in US tech stocks following Donald Trump’s electoral victory illustrates how swiftly capital aligns with administrations prioritising their homegrown companies. Europe, however, remains constrained by a conservative regulatory framework, particularly in large-scale funding access, impeding the potential of its tech sector.
To reverse this trend, Europe must focus on building a strong funding ecosystem that nurtures homegrown talent and supports scaling within its borders. Preventing stories like that of Sweden’s Klarna recently seeking US capital markets to sustain growth requires systematic changes in the European entrepreneurial landscape. By creating scale-up clusters that encourage collaboration and serve as hubs of capital, Europe can provide fertile ground for sustained growth. Coupled with incentives such as tax breaks and grants for founders and domestic investors, this approach would help curb the talent drain and empower European companies to thrive globally without relocating.
For Europe to secure its future as a competitive tech ecosystem, it must shift from dependency on foreign giants to cultivating its own. Without structural reforms to mobilise capital and incentivise growth, Europe’s best tech businesses will continue to seek support abroad, restricting Europe’s potential as a global leader in vibrant industries such as video gaming where historically we have led the way.
Paul Sulyok
CEO, Green Man Gaming
London NW3, UK
