Before it was home to giants like Klarna, and Spotify, Sweden was once the largest global vendor of mobile phones and smartphones for a whole decade starting in 1998. Today it leads the charge in producing more unicorns per capita than any other European city. Its startup ecosystem is currently valued at $62 billion dollars, bringing in $3.2 billion in early-stage funding. Sweden’s reputation as a hotbed for innovation and investment, with its focus on collaboration and mission, is a product and prime example of strategic investment into emerging markets.
Despite high interest rates, rising inflation and increased business competition post-Covid, there has also been a noticeable trend of increasing capital investment in Europe. In the first quarter of 2024, there was a reported 5% year-over-year growth in funding, indicating a robust and expansive environment for startups across the continent.
This resilience and growth underscores the importance of strategic investment. If I could give one piece of advice to investors looking for the next big scaleup or Unicorn, it would be not to underestimate the opportunities in emerging markets outside of the traditional European hubs like London or Paris. Explore diverse founder profiles and niche industries, much like those in Sweden did.
Startups need community to thrive
Investors tend to favour familiar territories, shying away from uncharted regions for the sake of safer bets. This is largely due to the complexities associated with regional laws, government funding mechanisms, and cultural and educational disparities.
I believe in creating opportunities that stimulate innovation. And so, fostering community becomes essential in bridging the gaps between startups and investors. Environments, where established firms and early-stage startups can connect, can serve to overcome such barriers, diminishing fear of the unknown for investors. This sense of community can make it easier to focus on innovation by providing a platform for diverse ideas to converge and thrive, enhancing the overall growth of the tech ecosystem.
At Glovo, we’ve taken proactive steps in this direction by hosting competitions in often-overlooked countries such as Ukraine, Georgia, Morocco, and Kazakhstan. In addition to receiving a cash prize, winners gain access to a community, mentorship, and a residency program at our offices in Barcelona connecting them with relevant players in the startup ecosystem. If there’s one thing I’ve learned from this experience, it’s that community is key to accelerating tech innovation in Europe; it’s up to established tech companies to create an arena for collaboration by sharing industry knowledge and advice.
Embracing a Culture of Collaboration
Collaboration is crucial to championing community and ultimately helping the startup ecosystem to thrive, particularly in places that don’t already have a strong regulatory framework in place.
Startups, unencumbered by traditional processes, hierarchies and technologies, often make perfect partners, allowing Big Tech companies to infuse fresh ideas into their operations. This is essential for pioneering change and growth within the industry. By nurturing both, especially in less-developed regions, we can expect more scale-ups and Unicorns to emerge from previously untapped markets like Sweden.
Read the orginal article: https://www.eu-startups.com/2024/08/how-community-and-collaboration-can-fuel-the-next-generation-of-unicorns/
