Europe's €120 Billion Opportunity: How Scaling Success Stories Could Close the Gap

Jan de Vries · 2026-09-24

Europe has a problem. It's not a lack of talent or ideas—it's a lack of scale. A new study from TEHA reveals that the continent could close a €120 billion annual investment gap by simply scaling its own success stories. That's a staggering number, and it got me thinking about what's really holding Europe back. ### The Scale-Up Struggle Europe excels at creating startups. But when it comes to turning those startups into global giants, something gets lost in translation. Too often, promising companies hit a ceiling and either stagnate or sell out to larger foreign players. The result? A massive investment gap that keeps widening. The TEHA study points out that if Europe could nurture its own success stories—think Spotify, Adyen, or ASML—and help them grow into world-class leaders, the economic impact would be transformative. We're talking about billions in additional investment, thousands of high-quality jobs, and a stronger position on the global stage. But here's the catch: it requires a shift in mindset. ### What's Holding Europe Back? There's no single culprit. Fragmented markets, regulatory hurdles, and a risk-averse culture all play a role. But perhaps the biggest issue is that Europe doesn't always celebrate its winners the way it should. Instead of scaling them, we sometimes let them slip away. - **Fragmentation:** Each country has its own rules, making it tough to operate seamlessly across borders. - **Access to capital:** Later-stage funding is harder to come by compared to the US or Asia. - **Talent retention:** Many of Europe's brightest minds head overseas for bigger opportunities. These aren't new problems, but they're persistent ones. And they're costing Europe dearly. ### The Path Forward The good news is that the solution is within reach. By focusing on scaling existing success stories, Europe can create a virtuous cycle. More success stories mean more investment, which leads to more success stories. It's a flywheel effect that could reshape the continent's economic future. As the study suggests, closing the investment gap isn't just about throwing money at the problem. It's about creating an environment where companies can thrive and grow without hitting artificial barriers. That means smarter regulation, better access to late-stage capital, and a culture that celebrates ambition. > "Europe doesn't have a startup problem; it has a scale-up problem." — This quote from a recent industry report sums it up perfectly. ### What This Means for Founders and Investors If you're a founder, the message is clear: think bigger from day one. Don't settle for a niche exit when you could build the next global leader. For investors, it's about recognizing the potential in European companies and providing the fuel they need to go the distance. And for policymakers? It's time to double down on initiatives that support scale-ups, not just startups. The €120 billion prize is too big to ignore. Europe has all the ingredients for success. Now it just needs to cook the meal. And that starts with scaling its own success stories.