Europe lags the U.S. and Asia in venture capital and in the willingness to finance companies whose revenue prospects are postponed. Is risk aversion effectively entrepreneurship aversion, as well? What does that mean for Europeans with innovative ideas? >>>
LINK: Why Europe isn’t creating any Googles or Facebooks (by MATTI HUUHTANEN for Yahoo! Tech)
“In the U.S., especially in Silicon Valley, they are up for any crazy idea,” said Benoliel, 43. “Successful businesses often come from crazy ideas.”
Europe’s relatively cautious attitude to investment stands out as one of the biggest hurdles — and among the most difficult to change.
By contrast, Internet companies often have little to no revenue at the beginning. Twitter and Facebook, for example, first focused on building up their user numbers. Only once they were established as global forces did they put more attention to making money, through advertising and other strategies.
This difference in mentality stands out as one of the key reasons that Europe has fewer venture capital firms and less investment in startups than the U.S. or Asia.
What do you think?