Investor insights

Europe is home to world-class tech talent, groundbreaking research, and thriving startups – strong foundations for building the world’s most innovative tech companies. But we lag the US and China in creating breakthrough, mega- scale companies. So far, European Big Tech has been just a pipe dream.

The numbers don't lie

The top 7 tech giants in the US are 17 times bigger than the top 7 in Europe. We have fallen massively behind in creating the kind of companies that drive innovation, create jobs, and shape the future. Europe needs to build its own Champions League of Big Tech companies that can compete with the ’Magnificent 7’ from the US and the ’Terrific 10’ from China.

What's holding us back?

It's not a lack of potential. Europe is packed with smart people and innovative ideas. There is an emerging Champions League of European tech companies, ready to to take the leap, but we need to think bigger and act bolder.

In our view, the road to Europe’s first Trillion-dollar company is clear: As a global investor, we have seen how US and Asian Tech companies build ‘Compounding Ecosystems’, leveraging their strength in one area to build other businesses on top – think Mercado Libre in Latin America, Uber in the US, or Tencent in China. These companies are a network of interconnected products and services that feed off each other and create something truly unstoppable. That's how you go from a big established company to a $1 Trillion empire, but European players have insufficiently tapped into this proven playbook.

Prosus is stepping up

At Prosus, we are serious about changing the game. That is why we're making the following commitments:

• Leading the charge: We are aiming to build a US$100bn+ ecosystem player right here in Europe. It will take time, but we are determined.
• Investing Big: We see opportunities to invest US$10bn+ in European tech companies. Our recent offer for Just Eat Takeaway.com underpins our commitment to invest big in Europe.
• Global AI Lab: We are establishing a world-class AI lab in Amsterdam to drive innovation.
• Ecosystem Support: We are committed to actively contributing to the growth of the entire European tech ecosystem.

But we can't do it alone

This isn't just about one company. It's about unlocking the full potential of European tech. Here's what we believe needs to happen:

• More Growth Capital: Despite recent commitments to invest more, a massive $400bn venture capital gap remains compared to the US, especially when it comes to growth-stage funding. Europe has the cash, but we need to prioritise innovation and take bigger risks.
• Play to Win: We need to stop being so cautious and start playing to win. That means supporting ambitious companies with the potential to become global leaders.
• Cut the Red Tape: A maze of inconsistent rules is choking innovation. While Europe has plans to cut this red tape, there needs to be swift action.

Let's build the future

Europe has all the ingredients to become a global tech powerhouse. It's time to get serious, think big, and build the future we deserve. Prosus is ready!

Fabricio Bloisi
Group CEO

Download our full report from Prosus and dealroom.co, ‘Shaping an AI-enabled Future: How Prosus is Investing in the Next Wave of AI Applications,’ for deeper insights into the strategies and opportunities outlined above.