E346 | EUVC | Christoph Klink, Antler on the need for technical founders in Europe with insights from Antler's recent report
Aug 29, 2024
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Christoph Klink, a Partner at Antler and former consultant at McKinsey, shares his expertise on the importance of technical founders in Europe. He discusses a significant rise in technical founders, noting that over half of new unicorns are led by those with technical expertise. Christoph emphasizes the need for diverse skill sets in founding teams and the challenges that European tech giants face. Insights from a recent study highlight the critical role technical skills play in startup success and the importance of supporting entrepreneurs on their journeys.
The need for technical founders in Europe is critical as recent trends show a shift toward deeper tech capabilities among new unicorns.
European tech ecosystems face obstacles like bureaucracy and fragmentation, yet the rise of technical founders signals potential for innovation growth.
Deep dives
The Importance of Technical Founders
There is a significant need for technical founders in the European tech ecosystem, which has historically underperformed in creating industry-defining technology companies. A study conducted showed that around 30% of unicorn founders in Europe have a technical background, compared to 70% in the US. This indicates a focus on business model innovation rather than technological advancement in founding teams across European startups. However, recent trends suggest that the new generation of unicorns in Europe is shifting, as more than 50% of these founders are now technical, reflecting a growing interest in deep tech.
Barriers to Building Tech Giants
The European tech landscape has faced several obstacles that hinder its ability to develop tech giants on par with the United States. Issues such as bureaucracy, a fragmented market due to diverse languages and cultures, and a shortage of growth funding have been prevalent. Furthermore, measures like insufficient public funding and regulatory challenges have discouraged technological innovation. Despite these factors, there is optimism as the recent focus on technical founders suggests a potential shift in the European landscape.
Evolution of Startup Composition
Recent data reveals that technical founders are emerging at a faster rate than their non-technical counterparts in Europe, particularly within sectors like AI, machine learning, and data engineering. Over the last three years, applications from technical founders have surged by 900%, while non-technical backgrounds have seen a 400% increase. This shift indicates a valuable opportunity for deep tech startups as more individuals with technical expertise are entering the entrepreneurial space. The changing dynamics also hint at a burgeoning demand for substantial investment in deep tech ventures.
Challenges Faced by Founders
Aspiring founders often face numerous challenges, particularly in navigating the early stages of building their businesses. It has been observed that the first customers may not accurately represent the long-term market viability of a product, as initial sales are sometimes driven by relationships rather than genuine product value. Founders may also overestimate the ease of scaling their customer base after achieving initial traction. Therefore, it is crucial for entrepreneurs to focus on building a scalable business model and not succumb to the early success illusions.
In this episode of the EUVC podcast, Andreas discusses with Christoph Klink, a Partner at Antler.
He draws on his background as a Business Angel and Partner with McKinsey & Company. Before joining Antler, he served a range of leading technology organizations, amongst others in the mobility and transportation space, on disruptive strategy and building innovative business models. Building and nurturing top-talent organizations is one of his key passions and a great source of inspiration for Christoph.
Christoph is at the forefront of early-stage investing, and we're thrilled to have him share his insights with us. Christoph is investing out of Antler's first Continental European fund, which has an impressive 60M EUR AUM. What sets Antler apart is their focus on investing and supporting startups from "day zero" to Series C.
In today's episode, we're diving deep into a topic that Cristoph has studied recently: The Rise of the European Technical Founder. Christoph will share some insights from their recent report, and why Antler is doubling down on this area and how it could be a game-changer for European tech.