Europe’s Tech Startup Dilemma – and Why We Built BXVentures

Europe is rich in science, talent, and ambition but that isn’t enough.

A recent report from the European Commission outlines why the continent continues to underperform in startup creation and scale-up.

At BXVentures, we agree with the diagnosis. In fact, it’s why we exist.

1. The European funding gap is real

Startup funding in Europe dropped from $101 billion in 2021 to $45 billion in 2024. The decline is sharp and telling. Entrepreneurs too often seek funding in the U.S. or Asia, where the capital is more available and risk appetite higher.

2. Bureaucracy slows innovation

Startups navigating Europe’s fragmented regulatory landscape face unnecessary friction. For early-stage deeptech, this friction can be a dealbreaker. What works in the lab may never make it to market if the pathway is too complex.

3. Institutional investors are missing in action

European pension funds allocate just 0.01% of their capital to venture. This lack of institutional engagement leaves a funding void at the riskiest and most innovative stage of company building.

Where BXVentures fits in

BXVentures is a startup studio born from this problem. We identify breakthrough technologies in labs and turn them into companies. We fund these ventures through the riskiest stage, until they’re proven in real-world, industrial environments.

Because we launch multiple startups, we’ve developed real operational expertise in navigating grants, subsidies, and regulatory complexity. The studio model allows us to handle bureaucracy efficiently, lowering the barrier to entry for each individual venture.

Conclusion:

Europe has the brains and the science. What it needs is the machinery to turn them into companies. That’s what we’re building at BXVentures.

‍