Best European Cities for Business Investment

The 'Munich Mafia' or how the City quietly evolved into one of the strongest DeepTech hubs worldwide. From AI to aerospace, quantum to industrial IoT, the city is consistently producing global champions. But what exactly makes Munich so special? Here are the five key factors: 𝟏. 𝐀𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐢𝐚𝐥 𝐔𝐧𝐢𝐯𝐞𝐫𝐬𝐢𝐭𝐲 𝐚𝐭 𝐒𝐜𝐚𝐥𝐞 At the heart of Munich’s rise stands the Technical University of Munich (TUM). Branded as the Entrepreneurial University, it invests 5% of its €1B budget directly into entrepreneurship — far above the German average of 0.1–1%. With UnternehmerTUM, Europe’s largest start-up center, TUM has built a machine that takes founders from first idea to global scale-up. 𝟐. 𝐀 𝐏𝐫𝐨𝐯𝐞𝐧 𝐓𝐫𝐚𝐜𝐤 𝐑𝐞𝐜𝐨𝐫𝐝 Celonis (process mining, $13B+ valuation), Flix (mobility across 40+ countries), and Isar Aerospace (Europe’s private space pioneer) all emerged from this ecosystem. Collectively, TUM-affiliated start-ups attract ~€2B annually from investors. The next batch of companies especially out of the defense and dual use space all born in Munich is already globally recognized Quantum Systems, Helsing, ARX Robotics 𝟑. 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐭𝐡𝐚𝐭 𝐒𝐩𝐚𝐫𝐤𝐬 𝐈𝐝𝐞𝐚𝐬 From the Munich Urban Colab to the MakerSpace, founders have access to state-of-the-art labs, rapid prototyping facilities, and shared workspaces. This setup allows a student team tinkering with microchips to become the next unicorn. The ecosystem fosters hands-on experimentation — a critical ingredient for DeepTech breakthroughs. 𝟒. 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 & 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐀𝐧𝐜𝐡𝐨𝐫𝐬 Beyond public funding, Munich benefits from strong private backers. Billionaire entrepreneur Susanne Klatten and the Strüngmann family (early Biontech investors) channel millions annually into start-ups. Meanwhile, corporates like Siemens, BMW, and Airbus act as anchor customers and innovation partners — giving young ventures the credibility and contracts to scale. 𝟓. 𝐀 𝐂𝐮𝐥𝐭𝐮𝐫𝐞 𝐨𝐟 𝐏𝐚𝐲-𝐈𝐭-𝐅𝐨𝐫𝐰𝐚𝐫𝐝 Successful founders don’t just exit — they reinvest. Celonis co-founder Bastian Nominacher, for example, actively mentors and angel-invests in dozens of start-ups. This “phone-a-friend” network gives new founders access to world-class expertise at exactly the right moment. It’s a culture that compounds over time and attracts international talent. Why It Matters Munich shows that Europe can build DeepTech ecosystems on par with Silicon Valley — but in its own way: combining rigorous science, entrepreneurial drive, and strong institutional support.

Munich just barely beat Berlin in startup funding this year (€2.3B vs €2.2B). But here’s what no one’s really talking about: 🐻 Berlin wins in a number of deals, - More startups funded, - But with smaller tickets. 🥨 Munich? - Fewer deals - Way bigger checks. What’s driving this? Munich is quietly becoming Europe’s deep tech and industrial powerhouse. I’m talking: - Defense - Robotics - R&D-heavy startups These sectors need huge capital and patience. Munich’s big corporate players are ready to: - Write those checks - Backed by international experience and talent - Pools stacked with PhDs and engineers, who want to build real products. Meanwhile: Berlin still rules for: - Fintech - SaaS - Consumer tech - and the digital economy playground But last year we saw fewer new startups launch there, pointing to a subtle shake-out or maybe just a cooling off. So here’s my hot take for founders and investors: 👉 If you build deep tech, Munich is where serious industrial innovation is happening: capital + expertise. 👉 If you’re after rapid scale in digital, Berlin’s ecosystem still has unmatched network effects. Two cities. Two very different startup worlds. Where will you place your bet in 2025? //Niclas

I just got back from a business trip to Athens - and beyond the sunshine and hospitality, one thing really stood out: SMEs there aren’t just recovering, they’re booming! 📊 This post is the 3rd in a series about the European Commission's 2024/25 SME Report. According to report, countries like Greece, Malta, Romania and Lithuania are seeing some of the fastest SME growth in the EU. Meanwhile, Germany and France, two of Europe’s largest economies, are flat or even shrinking in SME employment. 🌍 What’s Driving the Shift? In these rising economies, SMEs are: - Recovering faster from recent crises - Backed by targeted reforms and EU recovery funds - Benefiting from export demand, digitalisation, and tourism rebounds - Growing in confidence and hiring at pace In contrast, some of Europe’s most established markets are facing: - Demographic and talent shortages - Rising costs and tighter financing - Lower SME productivity and slower investment 🧭 What This Signals Europe’s SME map is being redrawn and the momentum is moving outward. The next generation of SME-led growth may come from Vilnius, Athens, Bucharest, and Valletta, not just Berlin or Paris. This isn’t just a regional story. It’s a call to rethink where innovation, investment, and support should go next. #SMEs #Europe #Growth #EURecovery #Competitiveness #Policy #Entrepreneurship #RegionalDevelopment Audrius Milukas Marius Svidinskas Nikos Patsis Marco Kemper, CAIA, FRM, CFA

If you understand what each European region is uniquely world-class at... You can predict where the next wave of category leaders and M&A deals will come from. ➡️ The Nordics - Home to Spotify, Klarna, and more Strength: Turning strong product culture and trust-based brands into global platforms very quickly. ➡️ Germany - Home to SAP, Siemens, Bosch Strength: Powering Europe’s industrial base with mission-critical software and automation that is deeply embedded and hard to replace. ➡️ France - Home to Dassault Systèmes, OVHcloud, Doctolib Strength: Blending elite engineering with an active state to build AI and cloud “sovereignty stacks” aligned with European regulation. ➡️ United Kingdom - Home to Revolut, Ocado Strength: Turning complex regulation and London’s financial depth into scalable fintech and retail tech business models. ➡️ Netherlands - Home to ASML, Adyen Strength: Controlling key infrastructure in chips and payments that the global tech ecosystem runs on. ➡️ Eastern Europe - Home to UiPath, Bolt Strength: Combining top engineering talent with cost efficiency and cross-border scaling to build automation and mobility leaders. Investors who treat Europe as a single bucket miss the point. Because value is created where regional strengths line up with the right business model. 𝐖𝐡𝐨 𝐢𝐬 i5invest: We are a corporate development firm with access to 150K+ top decision-makers in Strategy, Business Development, and M&A. We provide innovative tech founders with insights, expertise, and access to our network to take their companies to the next level. #growth #tech #startups #artificialintelligence Image Credit: Aakash Gupta & Product Growth

Valencia's Rise as a Global Innovation Hub 🇪🇸 In my career, I've had the privilege to visit many innovative ecosystems. Valencia is a beautiful city and one of Europe's extraordinary entrepreneurship and innovation ecosystems. My first visit was ten years ago, and in 2024, you can see the difference. In the past year alone, the number of startups has increased by 30%, highlighting the city's dynamic growth in the tech and innovation sectors. 📈 Here are some interesting figures; believe me, you will book a trip after this: 1️⃣ Over 200 new startups launched in 2023, contributing to the vibrant entrepreneurial landscape. 2️⃣ Investment in Valencia-based startups surged by 50%, reaching an all-time high of €300 million. 3️⃣ The city attracted top talent worldwide, with a 40% increase in skilled professionals relocating to Valencia for career opportunities. 4️⃣ Valencia's innovation district saw a 60% increase in coworking spaces, fostering collaboration and creativity among entrepreneurs and startups. 5️⃣ Marina de Empresas: It's a hub for companies, investment funds, and EDEM, a business training school founded by Juan Roig. And there is much more; this growth has a supportive ecosystem that includes incubators, accelerators, venture capital firms, and government initiatives promoting innovation and entrepreneurship.  #ValenciaInnovation #TechBoom #Entrepreneurship #StartupEcosystem #VentureCapital #GlobalTalent #InnovationDistrict #FutureofWork #Collaboration #InvestmentGrowth #SpainTech

Silicon Valley is cool. But have you seen what’s happening in Amsterdam? Founders are picking Amsterdam for the scale-friendly setup. Investors follow. And the reasons aren’t what you think. They’re not just getting canal views & bike rides. They’re getting: • One of the world’s best digital infrastructures • A multilingual, globally minded workforce • Fintech & SaaS momentum that rivals London • A business-friendly environment for EU HQs • A compact, high-quality city that avoids burnout And the secret sauce: Amsterdam makes scaling sustainable. You can build global companies without losing people to lifestyle fatigue. That’s why founders stay, and the ecosystem sticks. Scaleups like Miro, Booking.com, WeTransfer, Framer, Bird aren’t outliers. They’re just the first wave. If you’re thinking about your next startup move, look harder at Amsterdam. Not just for the lifestyle. For the unfair advantage. Which other tech hubs you think are on the rise? 🤔 —— 💡 Check out the full map here: https://lnkd.in/dQEZjDgU

Move aside London, Paris has been undergoing a Tech Renaissance, and is quickly becoming the centre of European start-up innovation & growth. Here's six reasons why. Policymakers have made a conscious effort to drive investment in French tech. Bpifrance, a French public investment bank, and La French Tech, were created to fund, support & grow the French start-up ecosystem. Founders, who had once looked towards the West Coast & US VC funding, have options closer to home, many now choosing to compete against US start-ups, rather than become one. Wider Government policies have supported this investment, balancing innovation & regulation. AI a particularly interesting case study, Finance Minister Bruno Le Maire stating last year ahead of the AI Safety Summit ‘On AI, Europe should innovate before it regulates.’ The introduction of the French Tech Visa has opened to door to global talent, in stark contrast to London & the UK doing the opposite. A fundamental building block in enabling growth, driving salary inflation, and attracting the best Engineers globally. Accelerators & Incubators have grown rapidly. Station F perhaps the best known, with a thriving start-up scene in ‘Silicon IX’. A distinctly French culture & a pride in being French founded, backed & supported. Many Paris teams have shunned remote working, choosing to be in and around a growing group of scale-ups dealing with similar challenges.