What prevents Europe from developing innovative business: expert opinions
November 1, "Megamind" together with experts talked about this topic in relation to Russia. But it turns out, in the very Europe where Peter I “cut the window”, the venture business has serious problems. Perhaps the most harmless of them is the lag of Europe from the United States.
France and Germany were the first to think about how to rectify the situation: at the end of October they announced plans to increase investments in European technology start-ups. The flow of investment is planned to increase both from the state and from private investors.
The state-owned banks of these two countries and the EU are investing 75 million euros in the fund of the French venture capital company Partech Ventures . By early 2016, the fund should be 400 million euros, said representatives of Partech Ventures. The company will distribute these funds among startups that need a leap in development. However, this jump is necessary for the entire EU venture capital industry.
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French telecommunications giant Orange and the advertising group Publicis said at the same time that they were creating a fund that plans to invest 500 million euros in French and German startups. “In an innovative economy, capital becomes a decisive factor. To accelerate development, you need to invest more money, ”said French President Francois Hollande.
The current situation is called the EU officials the main challenge in the development of the European economy. In Europe, venture capital is fragmented among a multitude of not very large funds, which makes it difficult to innovate and expand technology companies. Startups complain that they cannot attract enough investment in Europe to develop. Therefore, they are forced to seek funds outside the European Union. Of course, the first thing they do is turn to American investors, which is opposed by France, Germany and EU officials.
“How is it that we cannot find money in Europe?”, The general director of the Home24 Berlin startup Philippe Kreib lamented during a panel discussion at the French-German conference in Paris.
The European venture investment market is growing, there are many investment funds, but they are quite small. In addition, the difference in regulation in the EU countries makes it difficult to invest in foreign countries, even if it is a neighbor in the European Union, EU officials believe.
“Venture capital wants a bigger market and the laws are more honorable, not a mountain of restrictions and a pile of obligations,” quoted Vedomosti as the vice-president of the European Commission for the development of digital technologies, Andrus Ansip.
Despite the growth of venture capital investments in Europe, the EU is inferior to the United States both in terms of growth and in absolute figures. In the first three quarters of 2015, European start-ups attracted $ 7.43 billion in venture capital, which is 17% more than in the same period a year earlier, according to Dow Jones VentureSource . But in the USA, venture capitalists invested $ 39.54 billion in startups over the same period, which is 39% more than last year.
During the European summit, officials said they were going to unify industry standards and establish certification of data protection in the clouds. This will help small companies grow faster, hopes France's Secretary of State for Digital Technologies Axel Lemer.
Returning to the conversation about the problems of innovative business in our country, we can compare the key features of the Russian Federation and the EU:
- In Russia there is little money, but in Europe they are simply laid out in too many “pockets”.
- In Europe, too many regulators and contradictory laws in the venture capital industry. In Russia, such laws are not enough.
- Start-up support institutions are actively developing both in Europe and in Russia.
The head of the Internet Development Institute ( IRI ), German Klimenko, has a different opinion: “Europe is hampered by the same nuance as Russia: there is money, but there are no startups.”
This is how Alexey Lankin, Director of HotelTonight Service in Eastern Europe, reasons :
Lyubov Simonova, Director of Almaz Capital in Russia:
Victor Osyka, Almaz Capital 'Associate:
France and Germany were the first to think about how to rectify the situation: at the end of October they announced plans to increase investments in European technology start-ups. The flow of investment is planned to increase both from the state and from private investors.
The state-owned banks of these two countries and the EU are investing 75 million euros in the fund of the French venture capital company Partech Ventures . By early 2016, the fund should be 400 million euros, said representatives of Partech Ventures. The company will distribute these funds among startups that need a leap in development. However, this jump is necessary for the entire EU venture capital industry.
')
French telecommunications giant Orange and the advertising group Publicis said at the same time that they were creating a fund that plans to invest 500 million euros in French and German startups. “In an innovative economy, capital becomes a decisive factor. To accelerate development, you need to invest more money, ”said French President Francois Hollande.
The current situation is called the EU officials the main challenge in the development of the European economy. In Europe, venture capital is fragmented among a multitude of not very large funds, which makes it difficult to innovate and expand technology companies. Startups complain that they cannot attract enough investment in Europe to develop. Therefore, they are forced to seek funds outside the European Union. Of course, the first thing they do is turn to American investors, which is opposed by France, Germany and EU officials.
“How is it that we cannot find money in Europe?”, The general director of the Home24 Berlin startup Philippe Kreib lamented during a panel discussion at the French-German conference in Paris.
The European venture investment market is growing, there are many investment funds, but they are quite small. In addition, the difference in regulation in the EU countries makes it difficult to invest in foreign countries, even if it is a neighbor in the European Union, EU officials believe.
“Venture capital wants a bigger market and the laws are more honorable, not a mountain of restrictions and a pile of obligations,” quoted Vedomosti as the vice-president of the European Commission for the development of digital technologies, Andrus Ansip.
Despite the growth of venture capital investments in Europe, the EU is inferior to the United States both in terms of growth and in absolute figures. In the first three quarters of 2015, European start-ups attracted $ 7.43 billion in venture capital, which is 17% more than in the same period a year earlier, according to Dow Jones VentureSource . But in the USA, venture capitalists invested $ 39.54 billion in startups over the same period, which is 39% more than last year.
During the European summit, officials said they were going to unify industry standards and establish certification of data protection in the clouds. This will help small companies grow faster, hopes France's Secretary of State for Digital Technologies Axel Lemer.
Returning to the conversation about the problems of innovative business in our country, we can compare the key features of the Russian Federation and the EU:
- In Russia there is little money, but in Europe they are simply laid out in too many “pockets”.
- In Europe, too many regulators and contradictory laws in the venture capital industry. In Russia, such laws are not enough.
- Start-up support institutions are actively developing both in Europe and in Russia.
The head of the Internet Development Institute ( IRI ), German Klimenko, has a different opinion: “Europe is hampered by the same nuance as Russia: there is money, but there are no startups.”
This is how Alexey Lankin, Director of HotelTonight Service in Eastern Europe, reasons :
If we talk about Berlin, then I count more on bank loans or FFF, and not on venture funds and angels. That money is the first problem. And the second is the lack of good startups. The question of what comes first, the chicken or the egg, the availability of money or quality products is the answer to this and that.
And the problem with ambition. Everyone wants to be the first guys in the village, but they are afraid to become one of the best in the world. The goals are modest, the timing of the implementation of ideas is long. It is easier to release an application for those who live in New York and New Orleans than a product that immediately suits the residents of York in England and Orleans in France.
Lyubov Simonova, Director of Almaz Capital in Russia:
What I see is that there is no shortage of venture funds in Europe. The nearest event, which will be right here the other day ( Slush ), from year to year shows both the presence of venture investors and the presence of companies for investment. This is one of the major European events. About 460 investors and 1200 companies registered for this year.
In addition, we cooperate with several European funds and also look at companies from different incubators and accelerators, including in Poland, Bulgaria - this again from very operational.
Victor Osyka, Almaz Capital 'Associate:
The EU lacks a huge and multiply connected network of IT giants that make many mergers and acquisitions. This is the strength of the United States. Own startups are usually organized by people from large IT companies. In this respect, the EU is 20 years behind.
Indian or Asian developers tend to get to Hollywood for "geeks" - in Silicon Valley. And the European Union has not even become Bollywood. Perhaps the UK is more attractive to developers from Eastern Europe, the Middle East or Russia.
Source: https://habr.com/ru/post/296070/
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