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A small town in Finland is about to ditch fossil fuels in its heating network thanks to a sand-filled energy storage tank the size of a house. Finnish startup Polar Night Energy recently turned on the so-called sand battery in the municipality of Pornainen, an hour north of Helsinki.  The machine, which uses dirt to store excess renewable energy as heat, will warm the homes and businesses in the town of 5,000 people. It is expected to replace natural gas and oil in Pornainen’s district heating network entirely, slashing emissions by an estimated 70%.   “This project is a powerful example that effective solutions for mitigating climate change do exist,” said Liisa Naskali, COO at Polar Night Energy. “Combustion is not a sustainable option for the climate or the environment.”  The 💜 of EU tech The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now! The energy-storing structure measures about 13 metres tall and 15 metres wide and is filled with 2,000 tonnes of crushed soapstone, a byproduct of the construction industry. The new battery is 10 times larger than the startup’s first pilot plant in Pornainen, launched in 2022.  Polar Night’s sand battery contains 2000 tonnes of crushed soapstone. Credit: Polar Night When renewables are abundant, like on a sunny or windy day, clean electricity is wired to the battery. There, it powers a heater that sends hot air through a series of pipes into the giant vat of sand, heating it to a toasty 600°C.  Thanks to the battery’s insulated wall, this energy can be stored for weeks or even months. When needed, the battery discharges the hot air on demand — warming water in the district heating network. This can provide heat to households, factories, and even swimming pools. “Of course, we alone cannot solve the whole problem of climate change, but we need different solutions, and our sand battery is one of them,” said Naskali in a video.     With a power output of 100 MWh, Polar Night estimates the battery will be able to heat the whole town of Pornainen for a week in winter, or an entire month in summer when demand is lower — on just one charge. The town will still maintain a biomass boiler, which burns wood chips, as a backup source of energy during peak demand.  Charging the sand battery from ambient temperature to 600°C takes about four days. However, in practice, it’s continuously topped up with excess renewable energy whenever it’s available — so it rarely drops back to the temperature of the surrounding air. Insulation panels on the outside of the sand battery help retain heat for longer. Credit: Polar Night Polar Night said it is currently discussing installing new, bigger sand batteries in Finland and internationally. It aims to offer a cleaner alternative to fossil fuels for heating homes.  According to the International Energy Agency (IEA), heating accounts for around half of total energy consumption. In Europe, the majority of this heat comes from burning natural gas, oil, wood chips, or waste.  For European towns, especially ones with access to lots of renewable energy, sand batteries could be low-hanging fruit. If scaled, they could become a significant part of the energy storage toolbox, alongside other options such as lithium-ion, gravity, hydropower, and CO2 domes.   Want to discover the next big thing in tech? Then take a trip to TNW Conference, where thousands of founders, investors, and corporate innovators will share their ideas. The event takes place on June 19–20 in Amsterdam and tickets are on sale now. Use the code TNWXMEDIA2025 at the checkout to get 30% off. source

Earlier this month, the father of a wealthy cryptocurrency entrepreneur was abducted in Paris while walking his dog. The attackers, wearing balaclavas, forced him into a van, later severing one of his fingers and sending a video of the mutilation to his son alongside a demand for millions of euros in ransom. The incident joined a growing list of violent crimes in France linked to crypto wealth. Victims have included a prominent entrepreneur and his wife who were held hostage, a man doused in petrol, and a child targeted in an attempted abduction. As fear spreads within France’s crypto community, some industry figures are accusing the EU’s landmark digital asset regulations of exposing holders to greater risk. Their concerns centre on the transparency requirements, which could make it easier to track down crypto owners. However, other insiders argue that the EU rules make a convenient scapegoat. Stanislas Barthélemi, president of the French crypto lobbying group ADAN, told the New York Times this week that the rules may inadvertently have put holders in danger. By creating a traceable digital footprint, he said, criminals could potentially monitor blockchain activity to identify wealthy targets. Alexandre Stachchenko, director of strategy at French crypto exchange Paymium, echoed the concern. He said the industry “wants to be discrete and anonymous,” but EU law “tells us it’s criminal.” Sandro Gianella, Head of EMEA Policy & Partnerships, on stage at TNW Conference 2025 Hear from top voices on how the continent can lead — not just follow — in the next wave of AI. Yet others in the industry dispute the claim that the EU’s regulations have played a role in the surge in attacks. ‘Strategic deflection’ Marit Rødevand, CEO & co-founder of Norwegian anti-money laundering firm Strise, said there was “little evidence” of a connection between the union’s rules and crypto kidnappings.  “While it is easy for champions of crypto to postulate that the increased physical attacks on those operating in the space are a product of regulations, this is both reductive and a strategic deflection away from legitimate security concerns,” she said. According to Rødevand, it is just as likely that information about potential targets was accessed through hacks, social media exposure, or publicity. Many crypto entrepreneurs are also prominent influencers.  Christopher Whitehouse, a crypto expert and solicitor at London-based law firm RPC, also made no connection. Instead, he said those holding high amounts of cryptocurrency were “obvious targets.” “The recent surge in crypto-motivated kidnappings in France is alarming but not surprising,” Whitehouse told TNW.  He noted that cryptocurrencies have several features that make them attractive for ransom. They can be transferred instantly, are difficult to trace if moved by sophisticated criminals, and lack the safeguards of traditional bank accounts. Traditional currency, in contrast, can be tracked via serial numbers.  Exploiting human vulnerability The recent violence in France, while brutal, is also not anything new. According to data compiled by crypto security advocate Jameson Lopp, over 200 physical attacks against Bitcoin and cryptocurrency holders have been reported since 2014. Some have been fatal.   Matt Green, head of blockchain technology disputes at London law firm Lawrence Stephens, contends that the violence boils down to criminals exploiting the weakest link in the crypto chain: people.    “The only thing stopping criminals [from] gaining access is human error or force, so kidnapping aims to break down the integrity of that human-led security,” he told TNW. To protect themselves, some high-wealth crypto holders have beefed up their personal security, including hiring bodyguards.  Green suggests another layer of protection: multisignature wallets, a type of crypto wallet that requires multiple users to perform certain tasks, such as making transfers.  Just as some shops display signs saying no cash is kept on premises, crypto holders would do well to make it clear that a single individual cannot access funds, Green said. source

Europe’s not lacking talent — it’s lacking confidence. That’s the verdict from Meta’s chief AI scientist Yann LeCun, who says an “inferiority complex” among European media and investors is holding back the continent’s tech industry. “The main reason why the European tech industry is small is a mistaken assumption of technological inferiority on the part of the European media,” wrote LeCun in an X post.  “Perhaps more importantly, there was a similar inferiority complex on the part of investors, which made them less willing to take risks when the mere possibility of an American competitor would rear its head. That has been changing over the last few years.” The 💜 of EU tech The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now! This reluctance to make bold bets is illustrated in the funding gap across the Atlantic. Despite having more than twice the population, European tech firms struggle to attract the investments going to their American counterparts. In 2024, US startups raised $178bn, more than triple the $51bn figure for Europeancompanies, according to Crunchbase LeCun’s comments came in response to an X post by Arnaud Bertrand, the French founder of rental marketplace HouseTrip, who has had his own struggles building a startup in Europe. Bertrand founded HouseTrip in 2009, a year before the launch of a similar startup: Airbnb. HouseTrip also planned to make booking an apartment as simple as booking a hotel, but couldn’t compete with its American rival. Airbnb, which is now valued at over $80bn, grew into one of the world’s greatest tech successes.   Housetrip struggled to compete with the cash-flushed unicorn. Two years after Airbnb entered the European market in 2012, Bertrand stepped down as CEO. In 2016, TripAdvisor acquired the company for an undisclosed sum, before incorporating it into the travel site Holiday Lettings. Bertrand took to social media today to push back against a recent Wall Street Journal article that scrutinised Europe’s tech sector. Published Monday, the piece blamed the region’s sluggish performance on overregulation, fragmented markets, limited access to capital, and a risk-averse business culture. Bertrand agreed with some of the criticisms, but added that they “are all secondary.” “Based on my experience, the key problem faced by European startups can be summarised in one word: patriotism,” he said.” “There is virtually [no patriotism] in Europe, and more than anything that’s what’s killing EU startups, or preventing them from developing,” he continued.  According to Bertrand, one of the reasons his startup failed to beat Airbnb was a lack of patriotism among investors and media in Europe — a determination to back their own startups. LeCun, however, has a different view on the causes. “Not sure I would call this a lack of patriotism,” he said. “More like a lack of self-confidence.” Europe’s tech competitiveness will be a hot topic at TNW Conference, which takes place on June 19-20 in Amsterdam. Tickets for the event are now on sale — use the code TNWXMEDIA2025 at the checkout to get 30% off. source

Klarna’s CEO has warned that software engineers risk being left behind in the AI era — unless they’re also business-savvy. Speaking at SXSW London, Sebastian Siemiatkowski said the talent “who have really accelerated their careers at Klarna” are “business people who have learned to code.” The reason? “They can take their business understanding and turn it into deterministic or probabilistic statements with AI.” This shift, he warned, poses a threat to engineers. “A lot of them have allowed themselves to be isolated with technical challenges only, and not been that interested in what the business actually does,” he said. His message to them was blunt: “Engineers really need to step up and make sure they understand the business.” Sandro Gianella, Head of EMEA Policy & Partnerships, on stage at TNW Conference 2025 Hear from top voices on how the continent can lead — not just follow — in the next wave of AI. Siemiatkowski’s comments add another layer to Klarna’s controversial AI transformation. In December 2023, he said advances in the field had led the buy-now-pay-later firm to freeze hiring for all roles — except engineers. A year later, he had an update: the company had stopped bringing on new staff entirely. Open job listings, however, told a different story. Klarna also recently launched a new recruitment drive to ensure customers can always speak to a human. The apparent contradiction has drawn criticism, but the company is doubling down on automation. Last year, Klarna announced that its OpenAI-powered assistant was doing the work of 700 full-time customer service agents. It also used an AI-generated version of Siemiatkowski to present its financial update — suggesting even CEOs could be automated. The 43-year-old recently claimed that AI can already do “all of the jobs” that humans can do. At SXSW London, he stressed the need to be upfront about the risks. “I don’t want to be one of the tech CEOs that are like no worries everything will be fine, because I do think there will be major implications for white collar jobs and so I want to be honest about it,” he said. Despite the gloom, Siemiatkowski still sees big opportunities for people who blend business acumen with technical skills. “That category of people will become even more valuable going forward,” he said. Big names from both AI and fintech will be speaking at TNW Conference on June 19-20 in Amsterdam. Want to join them? Well, we have a special offer for you — use the code TNWXMEDIA2025 at the ticket checkout to get 30% off. source

European tech leaders are pushing back against high-profile VCs urging founders to work seven days a week — slamming the grindset mentality as everything from “toxic” to “childish.”  “Calling on founders to work insane hours nonstop is just bad advice,” Suranga Chandratillake, general partner at Balderton Capital and former CEO of video search engine Blinkx, told TNW. “Even sprinters don’t sprint all the time — rest and reflection is just as important as putting in the work.” His comments follow a LinkedIn post on Saturday by Harry Stebbings, podcast host and 28-year-old founder of London-based venture firm 20VC. “What European founders need to realise [is that] 7 days a week is the required velocity to win right now,” he wrote, implying that they need to match the infamous grind culture of Silicon Valley.       Martin Mignot, a partner at New York-based Index Ventures, rallied behind Stebbings. In a LinkedIn post of his own, he applauded the 9am-9pm, six days a week (illegal) work culture adopted by some tech firms in China. “Forget 9 to 5, 996 is the new startup standard,” he said.  The 💜 of EU tech The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now! While some echoed their views, many European tech founders and investors weren’t happy with the rhetoric. Amelia Miller, co-founder of return-to-work platform Ivee, called Stebbings’ post “unbelievably toxic.” “Only bad founders work 7 days non-stop,” she wrote. “It’s poor time management and a fast track to burnout.” Miller also said she thinks that working such long hours unfairly discriminates against parents and those with responsibilities outside the office.   Chandratillake also warned against taking advice from VCs without experience of starting and running a company. “If you’re a CEO, don’t listen to a jumped-up finance bro in a hoodie who has never done your job telling you how to do it!” he said.  The lively debate comes amid a broader conversation in European tech over whether workplace culture is holding the region back compared to the US or China.  In a podcast interview in March, Revolut boss Nik Storonsky criticised European startup entrepreneurs, saying they weren’t working hard enough and valued work-life balance too highly. Those comments followed another lively social media debate earlier this year about whether French founders lacked the “grindset” to succeed.   However, a recent survey of 128 European founders by early-stage VC firm Antler found that three-quarters of them work more than 60 hours weekly. Almost 20% of them exceeded 80 hours, challenging the notion that European founders don’t hustle.  Chandratillake said he believes that scrutinising work hours overlooks some of the real challenges founders face in Europe, such as access to late-stage financing. That said, the investor thinks there is a time and a place for the grind. “Sometimes founders have to work extremely hard and long hours, but that’s not sustainable all the time,” he said. “Building a successful company is a marathon, it takes endurance.”  European startup founders are the lifeblood of TNW Conference — and we want you there too. The tech festival takes place on June 19-20 in Amsterdam. Use the code TNWXMEDIA2025 at the ticket checkout to get 30% off. source

British fintech Wise said this week it would shift its primary listing from London to New York, joining a growing list of firms snubbing the London Stock Exchange. UK chip designer Arm opted for a New York IPO in 2023, while food delivery giant Just Eat Takeaway quit the LSE for Amsterdam in November.  Sweden’s Klarna has confirmed plans to go public in New York, following in the footsteps of fellow Stockholm-based tech darling Spotify, which listed on the NYSE in 2018.  The draw? Bigger valuations, deeper capital, and more appetite for risk. “The US economy continues to perform far better than the EU, and valuations are simply higher for companies that can list there,” Victor Basta, managing partner at Artis Partners, told TNW.    Sandro Gianella, Head of EMEA Policy & Partnerships, on stage at TNW Conference 2025 Hear from top voices on how the continent can lead — not just follow — in the next wave of AI. The numbers back him up. The NYSE boasts a market cap of around $27 trillion — compared to just $3.5 trillion for the LSE.  That scale — and the deep-pocketed investors it attracts — pushed Arm to list across the pond. Wise followed for the same reason, according to CEO Kristo Käärmann.  Käärmann said the move would tap “the biggest market opportunity in the world for our products today, and enable better access to the world’s deepest and most liquid capital market.”  Beyond sheer growth potential, US investors are also known for taking bigger bets on growth-stage tech companies.   “US investors understand the whole ‘revenue-before-profit’ strategy,”  Andrey Korchak, a British serial entrepreneur, told TNW. “Meanwhile, in Europe, they often want to see revenue from day one.”  That risk aversion, Korchak believes, restricts the growth of startups. “Europe just doesn’t have the same density of tech unicorns,” he said. “And when startups here do hit that billion-dollar mark, most still prefer to list in the US.” Sean Reddington, co-founder of UK tech firm Thrive, fears that Wise’s New York listing will deepen the problems.  “Wise’s move to the US signals a worrying trend,” he said. “It threatens a ‘brain drain’ of capital and talent, making it harder for growth-stage VCs to invest in UK scaleups without a clear US exit plan.” He called for urgent government action, including providing “meaningful incentives” for tech firms to list in the UK.  “If the ultimate reward of a domestic IPO is diminished, it pushes more companies to consider relocating or listing overseas,” he said. Europe’s startup struggles will be a hot topic at TNW Conference, which takes place on June 19-20 in Amsterdam. Tickets for the event are now on sale — use the code TNWXMEDIA2025 at checkout to get 30%. source

The European Union Aviation Safety Agency (EASA) has certified a mixed reality (MR) headset for civil aviation training for the first time — potentially signalling a shift in how pilots are taught.  Built by Finnish startup Varjo, the headset — called XR-4 — replaces the screens in a flight training cockpit, which are smaller, cheaper versions of the full-flight simulators used in the final phases of pilot training.  The MR tech blends digital environments with the physical cockpit and the pilot’s real hands and body. Using a process known as “masking,” everything outside the cockpit is digitally rendered, while the trainee interacts with physical controls.  A mixed reality view from the pilot’s perspective at night. Credit: Varjo That hybrid setup is designed to allow pilots to feel as though they are really flying. It also includes eye-tracking features that let instructors see where trainees are looking. This can help teachers observe how their students react during high-stress scenarios such as low-visibility landings or engine failures. Sandro Gianella, Head of EMEA Policy & Partnerships, on stage at TNW Conference 2025 Hear from top voices on how the continent can lead — not just follow — in the next wave of AI. Varjo’s device has been integrated into Swiss simulation device manufacturer Brunner Elektronik’s new flight trainer, which replicates the interior of a Diamond DA42 aircraft.   EASA’s approval for the system gives it formal authorisation for logging civilian flight hours in Europe. Lufthansa’s flight academy in Munich is already using the tech to train its new recruits. “This is much more than a one-off tech trial,” Tristan Cotter, Varjo’s global head of defence and aerospace, told TNW. “It marks the debut of the first qualified mixed reality simulator that we believe is on a clear path toward broader regulatory approvals.” Founded in 2016, Varjo has raised over $200mn and is Europe’s best-funded XR scaleup. It has previously worked with military and industrial clients, but this marks its first system approved for civilian pilot training.  While Cotter believes MR could disrupt the way pilots are trained, he acknowledges the tech’s current limitations.  “Mixed reality isn’t positioned to replace full-flight simulators anytime soon,” he said. “But it has enormous potential to impact earlier phases of pilot education.”   EASA’s approval comes amid growing efforts to integrate extended reality (XR) tools into regulated industries. The UK’s National Health Service (NHS) has trialled VR headsets to teach surgical students. Rolls-Royce has used MR for aircraft engine maintenance, while EDF Energy has deployed the tech to train its nuclear plant operators. However, despite its promise, widespread industrial XR adoption has been slower than expected, according to a recent report by research and advisory firm Forrester.   James McQuivey, principal analyst at Forrester, said “high costs and a lack of compelling use cases” were to blame for the sluggish adoption, and urged organisations to “measure their expectations.”  Nevertheless, according to the report, training was one area where the technology has already demonstrated a clear return on investment.   Want to discover the next big thing in tech? Then take a trip to TNW Conference, where thousands of founders, investors, and corporate innovators will share their ideas. The event takes place on June 19–20 in Amsterdam and tickets are on sale now. Use the code TNWXMEDIA2025 at the checkout to get 30% off. source

Britain’s new military tech strategy will fail unless startups are given clear pathways to adoption, experts have warned. Their concerns follow the government’s announcement that defence spending will increase to its highest level since the Cold War. Prime Minister Keir Starmer set out the aims in the new Strategic Defence Review (SDR), which includes plans to boost investment in technologies such as AI, drones, robots, laser weapons, and submarines.  The review outlines ambitious goals for military innovation, but defence tech insiders say the real challenge lies in translating funding into front-line deployment.  Tanya Suarez, who leads the dual-use accelerator Janus — backed by the NATO DIANA accelerator, whose COO will speak at TNW Conference this June — fears startups will still face major hurdles when working with the military. She said that while private funding for defence tech has reached record highs, companies still face a “wall” when trying to scale and deploy their technologies.  Sandro Gianella, Head of EMEA Policy & Partnerships, on stage at TNW Conference 2025 Hear from top voices on how the continent can lead — not just follow — in the next wave of AI. “Defence tech startups need a clear pathway from proof of value to adoption,” she said.    The SFR comes amid heightened geopolitical tensions across Europe. Russia’s war in Ukraine continues to cast a wide shadow over the continent.  Andriy Dovbenko, founder of the UK-Ukraine TechExchange, said the document rightly acknowledges Russia as a threat to all of Europe, but warned that funding alone won’t guarantee success. “Simply increasing UK defence spending without structural changes won’t work,” Dovbenko said. Dovbenko pointed to Ukraine’s wartime innovation model as a potential blueprint.   Ukrainian President Volodymyr Zelenskyy quickly integrated startup-made military tech into the country’s defence efforts early on in its war with Moscow. From AI-powered reconnaissance tools to low-cost drones, local startups now play a critical role on the front lines.   “World-leading defence innovation would not have happened in Ukraine without drastic changes to the procurement process, bringing technology startups and scaleups into the inner fold of the industry,” Dovbenko said.  Defence tech startups often struggle to break into the traditionally conservative military tech procurement process, dominated by legacy contractors or “primes” such as Lockheed Martin, Northrop Grumman, and Boeing.  Military tech procurement takes an average of 6.5 years for projects with a value of more than £20mn, according to data from British think tank Chatham House. While some provisions in the SDR suggest a shift toward more open innovation and faster procurement cycles, tech insiders want clarity on how that will be implemented in practice.  If you want to catch the talk from NATO DIANA’s COO or anything else on the packed agenda for TNW Conference, we have a special offer for you. Use the code TNWXMEDIA2025 at the checkout to get 30% off your ticket. source

TNW Backstage this week peeks behind the petals of the flower business — but not as you know it. In the latest episode of our podcast, we dig beyond beautiful bouquets to unearth the digital trends, disruptive models, and market moves reshaping the industry. Guiding us through the changes is Aron Gelbard, co-founder and CEO of Bloom & Wild — the UK’s top-rated online flower delivery company. Founded in 2013, Bloom & Wild transformed the traditional flower industry by moving it online and pioneering its now-famous letterbox delivery model. Aron shared the scaleup’s story, business strategy, and tips for fellow founders during a talk at last year’s TNW Conference. We revisit the session in the latest episode of TNW Backstage — and preview the founders and insights featured at this year’s event. You can listen to the show on Spotify, on our dedicated podcast site, or via the media player at the bottom of this article. Catch up on TNW Backstage The 💜 of EU tech The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now! TNW Backstage takes you behind the scenes of TNW Conference — and the tech shaping our world. Missed an episode? You can catch up below: In our debut episode, we explored data privacy and Meta’s controversial “pay or consent” model with Ron de Jesus, the world’s first Field Chief Privacy Officer. Episode two featured comedy creator Derek Mitchell and TNW co-founder Boris Veldhuijzen van Zanten on the power of humour in tech. Our third episode dove into brain-computer interfaces with MindAffect CEO Jennifer Goodall. Episode four examined the future of personal audio with Xander de Buisonjé, a musician and the founder of Breggz. To celebrate the podcast’s launch, we’re offering an exclusive discount on tickets for TNW Conference, which takes place in Amsterdam on June 19 and 20. You’ll find the offer hidden in each episode of TNW Backstage.     source

Europe has a unique chance to lead in software — but only if it improves its ability to turn startups into profitable businesses. That’s the conclusion of a new report from McKinsey and Boardwave, which warns that unless the region tackles structural barriers, its startups will continue to lag behind global rivals. The report, Europe’s Moonshot Moment, found that the continent has over 280 software companies generating more than €100 million in annual recurring revenue (ARR). These scaleups include the likes of Spotify, Revolut, Adyen, and Vinted. However, European software businesses that reach the €100 million ARR threshold take 15 years on average to get there. That’s five years longer than their US peers, the report found. Europe also lags in birthing software giants. While 5–10% of US firms reaching €100 million in ARR subsequently scale to €1 billion, fewer than 3% of their European peers reach that milestone. The report highlighted some of the reasons for this stalled growth: fragmented markets, conservative corporate norms, and a slower flow of late-stage capital relative to early-stage investment. Turning point? Sandro Gianella, Head of EMEA Policy & Partnerships, on stage at TNW Conference 2025 Hear from top voices on how the continent can lead — not just follow — in the next wave of AI. Despite the hurdles, the report’s authors are confident that all the ingredients for Europe’s success in software are now in place. “Europe already holds the essentials to create the world’s next generation of software champions: deep talent pools, vibrant founder networks, and a rapidly maturing capital base,” said Ruben Schaubroeck, senior partner at McKinsey. While Europe lost out to Silicon Valley firms like Google and Microsoft in the early internet era, emerging technologies like AI may offer a new opening for the region’s tech startups. Geopolitical shifts could also drive governments to invest in local tech ecosystems and rethink digital sovereignty, said the report. “There’s no denying that European tech has faced structural barriers, but we’re at a genuine inflection point,” Phill Robinson, CEO and co-founder at Boardwave, told TNW. “New technology arenas, geopolitics, and an evolving operating environment are creating a unique opportunity for Europe to boost innovation.” Now Europe must turn that potential into profits, the report argues. To that end, it suggests five key interventions to boost Europe’s software ecosystem: Expand late-stage funding Encourage experienced founders to start new companies Make it easier for sales and marketing teams to work across borders and help startups grow faster Encourage more large firms in Europe to buy software from European startups by offering government support or financial incentives Strengthen public-private partnerships to de-risk new technologies Scaling up European tech The McKinsey/Boardwave report comes hot on the heels of the EU’s landmark Startup and Scaleup Strategy, launched last week. The plan set out several reforms designed to remove barriers to growth for the bloc’s early-stage companies. “If implemented boldly, and most importantly quickly, it can help Europe move from fragmented success stories to systemic, continent-wide scale; otherwise, we risk being left behind,” said Robinson, commenting on the new strategy. The EU’s proposal includes provisions for a long-awaited “28th regime,” which would allow companies to operate under a single set of rules across the 27 member states. It is intended to reduce headaches around taxes, employment rules, and insolvency. Robinson said he believes the EU’s new strategy will strengthen Europe’s software ecosystem by making it easier to operate across borders. “We need to act as one innovation ecosystem, not 27 different ones,” he said. “That’s what makes this Europe’s moonshot moment. If we connect and act now, we can lead. And not just in Europe, but globally.” source