Europe and Israel’s Founder Factories

Since Accel opened its London office in 2000, the European and Israeli tech ecosystem has evolved into the vibrant landscape we see today. This report, in collaboration with Dealroom, details how growth across the region has been supported by a phenomenon we call the "founder factory" effect.

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Key insights:

  • In 2000, Europe had yet to produce a unicorn. Today, there are more than 360 VC-backed European and Israeli founded unicorns
  • Of these unicorns, 281 have helped to fuel 2,027 tech-enabled startups across the region as former employees become founders
  • Klarna, Spotify, and Zalando top the list of 26 "founder factories" that have each produced more than 20 new companies
  • Spotlights are on the founder factory effect across tech ecosystems in the UK, Germany, France, the Nordics and Israel
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When Accel opened its London office in 2000, Europe’s technology ecosystem was nascent. Many questioned Europe’s ability to generate billion dollar outcomes, but we’ve always believed that ambitious founders could come from anywhere.

25 years on, there are more than 360 unicorns across Europe and Israel. Produced in partnership with Dealroom, our report reveals that many of these iconic companies are flywheels, spinning off talented entrepreneurs who found and build their own startups, and ultimately play a direct role in driving the region's vibrant tech ecosystem forward.

At a glance

2,027

The number of tech-enabled startups founded by former unicorn employees in Europe and Israel

53%

The percentage of startups founded in the same city as the unicorns where their founders gained experience, creating thriving tech hubs across the region

60%

The percentage of startups built by former unicorn employees that have secured $1M or more in private funding

Insights

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“Back in 2000, Europe’s tech ecosystem was nascent. However, 25 years on, our data highlights the vibrant tech ecosystem that exists today and how the network effects that Silicon Valley has long benefited from are now at work across Europe and Israel. A strong pipeline of talent and capital means the flywheel across the region is spinning. Beyond repeat founders, teams with experience across product, engineering, and management have also been on the startup journey before, and are applying their insights and learnings to building the next generation of businesses set up for long-term success."

Harry Nelis, Partner at Accel

Key takeaways

  • Klarna, Spotify and Zalando are the biggest nurturers of tech startup founders, producing 181 companies across Europe and Israel between them
  • As the region’s tech ecosystem evolves and matures, 22 founder factories have produced an additional 25 founder factories between them
  • A third of the tech startups founded by former unicorn employees have secured $10M or more in funding

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