Analysis

August 11, 2020

Why do European companies buy so few startups?

European companies are much less likely than US peers to buy startups. It has big implications for the startup ecosystem and tech sovereignty.


Maija Palmer

6 min read

Photo by David Clarke on Unsplash

“As a VC I strongly encourage most of the startups I work with to look at the US as they are much more likely to get an exit there,” admits Vin Lingathoti, partner at Cambridge Innovation Capital, which invests in disruptive technologies based in Cambridge.

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Chart showing the number of big companies in the US vs Europe
Chart showing the number of startups bought by US vs European companies
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Pie chart showing the nationality of buyer in US startup deals
Pie chart showing the nationality of buyer in European startup deals
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