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Revolution in Innovation: Leading European Investors are from the Public Sector

The European technological ecosystem is undergoing a transformation led by public organizations focused on technology funding. A new study by the European Patent Organisation (EPO) highlights the crucial role these investors play in supporting startups, in contrast to the situation in the US, where private investors dominate.

The study introduces the Technology Investor Score (TIS), showing that 88% of European investors have portfolios rich in patents. The top five investors in Europe in the technology sector are public organizations such as the European Innovation Council (EIC), Innovate UK, the Eurostars SME Programme, Bpifrance, and the European Institute of Innovation and Technology (EIT).

Among private investors in the top 100 most central positions, 62% focus on early-stage funding, while only 22% specialize in late-stage funding, highlighting the limited capital available in Europe for scaling up technologies and bringing inventions to market. In contrast, in the US, private investors account for 98 of the top 100 most central investors in the co-investor network, with more than half specializing in late-stage companies, reflecting stronger private sector support for scaling high-tech companies.

The findings underscore Europe’s commitment to creating a vibrant startup ecosystem, with nearly €392 billion invested in technology from 2000 to 2023 in leading countries such as the United Kingdom, France, and Germany.

EPO President António Campinos emphasized that bridging the investment gap is crucial for transforming European innovations into global successes, while the report and EPOs improved tools are key to supporting startups.

Tool for Startups Helps Find Investors

The comprehensive mapping of technology investors provided in this study is part of the EPO’s broader efforts to support small and medium-sized enterprises (SMEs) and startups in Europe. As a complement to the study, the free online EPO Deep Tech Finder tool has been updated, enabling startups to easily find and filter the most suitable investors from more than 10,000 European startups, spin-offs, and universities with patent applications at the EPO.

For more information, visit the EPO website where you can find the study.