The pulse of European entrepreneurship beats strong, but funding doesn't keep up

Walking through the halls of VivaTech 2026, the technology and entrepreneurship fair celebrating its tenth anniversary in Paris, is a dazzling experience. With over 200,000 attendees from 165 countries — investors, analysts, entrepreneurs, regulators, and large corporations — and 15,000 startups gathered, the event has established itself as the epicenter of the European innovation ecosystem. However, beneath the shine of the booths and demonstrations, a recurring concern beats: talent abounds, but funding for scaling remains elusive. ComputerWorld was present, invited by the organizers, and was able to confirm that although half of the startups that attended last year closed 25% of their annual business during the fair, the path to sustained growth is uphill.

François Bitouzet, CEO of VivaTech, explained in an exclusive interview that the fair not only serves to obtain money, but also to find advice, inspiration, and connect with regulators. "Entrepreneurs don't always have time to learn about the regulators' point of view, and here they can do it," he noted. The presence of figures like Jeff Bezos and the Prime Minister of India, Narendra Modi, acts as a seal of approval for the European ecosystem, sending the message that Europe has become a strategic hub for technological and business innovation. "They don't come for VivaTech, they come because the European ecosystem and its markets are interesting to them," Bitouzet stated.

Technological sovereignty: from slogan to practice

Technological sovereignty was one of the central themes of the debate, even mentioned in the opening speech. Bernard Arnault, CEO of LVMH and founding partner of VivaTech, emphasized the importance of European collaboration, especially between France and Germany, the guest country in 2026. "When France and Germany are on the same wavelength, it's all of Europe that moves forward together," he assured. Karsten Wildberger, Federal Minister for Digitalization and Modernization of Germany, agreed that Europe must deepen its technological sovereignty to be able to choose suppliers and build deeptech. "Europe must move from slogan to practice," he stated.

In this context, European startups are seen as key players in building that sovereignty. However, as we will see, financial support remains insufficient, especially in the scaling phases. This challenge is not new, but it worsens when compared to ecosystems like the American or Asian ones, where the appetite for risk is greater. In fact, in articles like Oracle cuts its workforce by 13% in 2026: the price of betting on AI and the cloud, we see how even large companies redirect their investments toward AI and the cloud, leaving less room for risky innovation.

Spanish and European talent: small gems seeking investment

Talent is not lacking, as demonstrated by the Spanish startups present at VivaTech. Aitaca, for example, started working on child malnutrition and has developed computer vision software that recommends ring size without margin of error. Nicolás Moreno, business development director, explained that this technology is vital for e-commerce of rings, reducing returns and improving sales predictions. "It allows setting up a leading company in Spain thanks to funds like those from CDTI or ICEX," he stated.

Another notable startup is Agrolinera, specialized in intelligent management of livestock products, converting surpluses into clean energy and fertilizers. Juan Gutiérrez, CTO, noted that "the appetite for risk is greater in the United States, in Europe there is a certain risk aversion." Gogoa, a spin-off from CSIC, is the first European company to certify a lower limb exoskeleton for neurorehabilitation. Its CEO, Carlos Fernández, denounced: "We are 20 people, we don't lose money, but even so, they don't invest in us. We are a technological reference, but we lack commercial potential."

These cases reflect a reality: aid for creation and initial development exists — such as programs from the Fundación Madrid+D or Acció — but the real problem lies in scaling. Funding rounds are small compared to those in the United States, and European investors seem more conservative. This phenomenon is also observed in other sectors, such as cybersecurity, where the risk of AgentJacking shows how lack of investment in security can have serious consequences.

The big challenge: scaling beyond the initial phase

The scaling problem is not new, but at VivaTech 2026 it became more evident than ever. While European startups display enviable technical talent, from spaceships to smart guitars, funding for growth remains insufficient. Restrictions on going public and the lack of private investment contrast with the generosity of American or Japanese investors, who often buy European technological talent.

Institutional aid, such as from CDTI, ICEX, or European programs like Horizon Europe, is valuable for the R&D phase, but does not solve the commercialization problem. Jesús Rojo González, head of European Programs at Madrid+D, highlighted that they offer training, coaching, and internationalization, but the leap to large scale requires investors with a greater appetite for risk. In this sense, initiatives like the ANS project from Linux Foundation show how open collaboration can be a model, but funding remains the bottleneck.

The latest edition of VivaTech has served to showcase European technological strength, but also its shortcomings in the commercial area. With the cards on the table, a period of reflection and debate opens: can European entrepreneurship attract the necessary interest to capture large investments? The answer is not clear, but what is certain is that talent is there, waiting for an opportunity.

Original source: ComputerWorld. Analysis and adaptation by ForgeNEX.