A recent report released by venture capital investor Antler highlights the shortage of technical founders in Europe, which has historically hindered the region’s ability to create and build world-class technology companies. However, the research suggests that increasing numbers of software engineers in Europe are starting their own companies, showing promise for the region’s innovation economy. Antler’s unique approach involves inviting founders to participate in residencies to assess their potential before making investment decisions. The report analyzes 1,000 European founders and around 60,000 aspiring entrepreneurs seeking investment through the program.
The report draws a sharp contrast between Europe and the United States in terms of creating successful tech companies. While 45% of Europe’s largest technology companies have technical founders, the twenty most valuable tech companies in the U.S. were created by founders with backgrounds in computer science, data, and software development. Antler suggests that Europe’s failure to produce a tech giant is partly due to the lack of entrepreneurs with hands-on technical experience, an issue that needs to be addressed to boost innovation and competitiveness in the region.
Antler’s partner Christoph Kink emphasizes the importance of technical founders in the modern technology and innovation ecosystem. According to the report, emerging unicorn companies and successful European businesses in deep-tech, big data, and predictive analytics are more likely to have technical founders. Kink believes that founders with direct technology experience have a competitive edge, especially in the rapidly evolving tech landscape where consumer innovation has already taken place, making deep-tech solutions essential for future growth and success.
The report cites Mistral, Synthesia, and Pigment as examples of European companies with technical founders who have worked at established tech companies like Meta and Google. These founders not only bring technical expertise but also insights into real-world problems that need innovative solutions. With the decrease in opportunity costs for leaving stable jobs and the shift towards deep-tech solutions, more technical founders are venturing into entrepreneurship. Antler has observed a significant increase in alumni from established companies and technical founders among its new cohort of founders, indicating a positive trend in the market.
However, there is a higher percentage of tech-skilled founders from France and Germany compared to the U.K., potentially influenced by Brexit’s impact on talent migration to London. Despite the value of sales and marketing-focused entrepreneurs in growing companies with solid business models, technical founders play a crucial role in developing innovative solutions in AI, analytics, cybersecurity, quantum computing, and biotech. Antler’s research suggests that technical founders with hands-on experience in technology are vital for understanding complex technological problems and creating solutions that meet customer needs, highlighting the significant role they play in driving innovation and growth in the tech industry.
