According to the European Monitor (2016), the most used in the European ecosystem are IT/software development, followed by and Industrial technology/production/hardware. The greatest challenge is related to sales and customer acquisition.
An overview of the European startup ecosystem
As reported by the EuropeanMonitor:
To provide an overview of the industries in which the startups are operating, the respondents were asked to match their startup to one of eighteen industry categories. The results indicate the relevance of the digital economy for innovative European startups; the digital economy accounts for five of the seven major categories. Most startups stated that their venture belongs to the IT/software development sector (15.0%) followed by software as a service (12.2%) and industrial technology/production/ hardware (8.3%) . The most frequent categories on the level of individual countries are IT/ software development (8 countries) and software as a service (8 countries).
What is the most popular business model for European Startups?
Most Popular Business Models of European Startups (2016)
|Software as a Service ()||12.2%|
|Consumer mobile/web application||6.8%|
|Bio-, nano-, and medical technology||5.8%|
|Finance/finance technology (FinTech)||5.2%|
|Online service portal||4.2%|
|Media and creative industries||3.3%|
|Stationary wholesale and retail||0.6%|
What is the prevailing business model for each country?
Prevailing business model by country
|Cyprus||Industrial technology/production/hardware, Consumer mobile/web application|
|France||Consumer mobile/web application; IT/software development|
|Israel||IT/software development; SaaS|
|Poland||IT/software development; SaaS|
|Switzerland||Finance technology (FinTech)|
|Other EU countries||SaaS|
What is the major challenge?
Greatest challenges for European Startups
|Team development||3.1 %|
|Acquisition of staff||5.6 %|
|Processes/internal organization||5.7 %|
|Raising of capital||12.1 %|
|Product development||17.1 %|
|Sales/customer acquisition||19.5 %|
Sales and customer acquisition is the biggest challenge European startups have. As pointed out many times over on this blog, sales and distributions are among the most challenging part for any startup. At the same time, it is also the reason why many startups fail and many others do not succeed.
Reference for the data: European Startup Monitor
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