Report: How Europe and Israel’s Unicorns Have Helped Drive Growth of Region’s Tech Ecosystem
We're excited to share a new report: "Europe and Israel's Founder Factories: 25th Anniversary Edition," a collaboration between Accel and Dealroom. 25 years since Accel opened its London office, this report highlights the incredible growth and transformation across the European and Israeli tech landscape.
Back in 2000, the European tech ecosystem was just beginning to take shape. There were questions about whether Europe could truly generate billion-dollar outcomes and it would still be another five years until Skype hit unicorn status.
Fast-forward to today, and the answer to the billion-dollar question is a resounding yes. Europe and Israel are now home to a vibrant ecosystem that’s a powerhouse of talent, innovation, and ambitious entrepreneurs building global category-defining companies. With over 360 unicorns today, the region has proven that it is uniquely poised to cultivate great companies.
This report shows how regional growth has been supported by a phenomenon we call the "founder factory" effect. We map how 281 of the VC-backed European and Israeli unicorns have produced another 2,027 tech-enabled startups across the region as former employees become founders. This "talent flywheel" is spinning faster than ever, creating a network of experienced individuals ready to build resilient and enduring businesses.
Key highlights from the report:
- Founder Factories, ranked: Klarna tops the list with 66 startups founded by former employees across Europe and Israel, but there are 26 unicorns that have also produced over 20 new tech companies
- Funding Maps: 60% of second-generation startups have secured $1M in funding, while ⅓ have secured $10M+ Bonus: we map funding to the founder factory cohorts that have raised $1B or more between them
- Thriving Tech Hubs: We show how "founder factories" are fueling the growth of tech hubs in cities across Europe and Israel.
- Spotlights: Deep dives into the UK, Germany, France, the Nordics, and Israel, showcasing their unique contributions to the founder ecosystem.
As we look to the future, we believe Europe’s poised to continue to attract and produce the talent needed to build the next generation of companies. “Many European founders have built incredibly successful companies while staying true to our European culture and distinctive ways of doing business,” Ilkka Paananen, CEO and co-founder of Supercell, tells us. “Europe has a very unique, diverse culture and a unique way of life that we all love — this is a great place to live and grow a family.”
You can download the full report here.