Why EU Inc. Could Be a Boon to Startups — or Another Flop

As Europe searches for ways to strengthen its competitiveness, one problem keeps resurfacing: Its companies struggle to scale. The European Union has an opportunity to change that, if it’s prepared to act boldly.

While the continent generates about as many early-stage startups as the US, far fewer grow into large, cross-border businesses. US firms receive nearly five times more venture funding than their EU equivalents­ — or $1.2 trillion more since 2020 across the whole funding life cycle, with the largest gap at later stages.