Europe's Green Deal for Startups

StartUp City | Thursday, March 17, 2022

A new Industrial Strategy for a green and digital Europe

FREMONT, CA: Just as the global climate crisis was beginning to capture the world’s attention, the Covid-19 crisis arrived.  As the world slowly recovers from the aftermath of the pandemic, European politicians claimed commitment to an economic recovery with the planet’s health in mind. Europe has decided to take a clean tech approach regarding recent startups. The term Cleantech refers to various companies and technologies that aim to improve environmental sustainability by leveraging technology.

According to the State of European Tech 2021 report by the venture capital company Atomico,a regular fixture to understand the state of the art of European technology–in Europe the levels of early-stage investment (the initial phase of a startup) are now similar to those of the United States (3.8 billion dollars against 4.1 billion in the USA). The research looked at 45 countries and was published alongside Slush, the world’s largest startup community, with the support of Orrick, one of the world’s leading technology law firms, Silicon Valley Bank, and investment management firm Baillie Gifford.

Europe offers a lot of potential for its startups to grow. In particular, Planet Positive companies are the fastest-growing segments in which investors are interested. With the recent surge of impact investment from corporates thanks to the understanding that sustainability can lead to profit, sustainable entrepreneurship is starting to take centre stage and giving birth to the social entrepreneur. Green startups encourage social good by leveraging technology to create environmentally-friendly products and services. They aim to create a sustainable and financially viable future, with the focus being on mid-to long-term sustainability rather than just short-term profits. Thankfully, Green Startups are beginning to receive financial support from venture capitalists, impact investors, and other like-minded entrepreneurs who understand not only the importance but value of sustainable businesses.  

For entrepreneurs seeking new opportunities for their latest business venture, leveraging green concepts and initiatives is certainly an interesting avenue to explore. Gone are the days where eco-friendly businesses struggle to find investors and the public are generally apathetic to a business’s social responsibility. Younger generations are creating a future where sustainable business models can lead to profitability, benefitting both stakeholders and the world and society at large. With so much outspoken support for green initiatives globally, now is the time for entrepreneurs in Europe to capitalise on the ‘green revolution’ and leverage eco-conscious business practices for long-term financial growth that sparks positive social and environmental change.

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