Europe’s startup scene has recently seen tremendous growth, with several countries serving as hubs of entrepreneurial activity. Estonia, Iceland, Sweden, Switzerland, and United Kingdom all play critical roles in creating vibrant startup ecosystems that support startup activity.
The European startup ecosystem’s dynamic and resilient nature is evidence of its innovative spirit, solid infrastructure, and concerted support by governments and investors for European entrepreneurial activity. As this trend evolves, these entrepreneurial hotspots should continue driving growth and innovation within this dynamic market.
- Estonia
By 2022, Estonia had more than EUR9800 invested per capita – significantly higher than the European average of just EUR130. Internet use in Estonia is recognized as a fundamental human right and recognized as one of the nation’s hallmarks for IT, cybersecurity, and government services. Estonia also boasts over 1400 startups established there, such as Skype, Playtech, Wise & Bolt.
2. Portugal
Lisbon raised approximately EUR780 per capita in 2022. Lisbon-based impact startups raised an astonishing EUR7.8M in 2022 – more than three times what was raised in 2020. The number of local and foreign entrepreneurs and investors entering the region has grown significantly, signaling its healthy development. International investors play an increasingly vital role in Lisbon-based startups’ ecosystem, accounting for over 80% of total investments and 70% of rounds raised in 2022. Lisbon’s top universities are actively cultivating entrepreneurial talent. Together their combined enterprise value exceeds $850M.
3. Sweden
Swedish companies raised about EUR570 per capita in 2022, significantly exceeding the European average. Sweden has an ecosystem worth EUR239 billion, producing corporations like IKEA or Volvo and unicorn startups such as Klarna and Northvolt.
4. Iceland
Iceland raised approximately EUR500 per capita in 2022, surpassing Europe-wide averages. One hundred sixty-seven startups are present across all sectors – 45 Foodtech startups, 30 Energy & Environment startups, and 18 Health startups.
5. Switzerland
Swiss startups specialize primarily in fintech and blockchain. The average startup funding per capita was approximately EUR440 per capita in 2022.
6. United Kingdom
Investment rates in 2022 are roughly EUR465 per individual in the UK due to its zero startup costs for new business owners and 19% business tax.
7. Czechia
Czechia was named the top country for startups in 2023 due to its low startup costs – just 1.1% of Gross National Income per capita – and a competitive business tax rate of 19%.
8. Finland
Finland stands out with its combination of low 20% corporate tax and average salaries averaging $4,550, scoring the highest score globally for happiness while excelling in quality of life metrics in 2023.
9. Netherlands
In 2023, The Netherlands took top honors for quality of life. Starting costs average 4% of GNI per capita with a 25.8% business tax, and salaries average $3943 per employee.
10. Denmark
Denmark boasts relatively low startup costs at 0.2% of GNI per capita and ranks second for quality of life, boasting the highest average salary in Europe at $5,965 annually – offering highly affordable startup costs for businesses looking to get off the ground quickly.
