Some interesting thoughts from Christophe Bavière, the head of European alternative assets manager Idinvest, on what European start-ups need to match up to their US and European counterparts.
Bavière believes that European companies have the technology and leadership to match anything coming out of Asia and the US. What is lacking is capital.
“You used to be able to get a company going with €2m but now you need €20m on day one because you are up against competitors from Asia and Silicon Valley. If you are involved in innovation and focused on disruption everything happens faster, larger and more globally. You need more money faster or you won’t be in the race for long,” Bavière says. “If the potential of European companies is not realised it will not be because there is a lack of innovation or high-quality managers. It will be because they have not been given the tools to finance their ambitions.”
European LPs take note.