It is clear from PE Wire’s VC Insight report that, when it comes to VC investment, Europe is prospering. For a start-up ecosystem, Europe remains successful and attractive to investors – it is exciting to read that a number of major US-based VC firms are hiring or expanding existing teams in London and Europe to better access this region.
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By Sam Perry (pictured), Director of Strategic Alliances – Private Equity & Venture Capital, Globalization Partners
It is clear from PE Wire’s VC Insight report that, when it comes to VC investment, Europe is prospering. For a start-up ecosystem, Europe remains successful and attractive to investors – it is exciting to read that a number of major US-based VC firms are hiring or expanding existing teams in London and Europe to better access this region. In 2021, the continent delivered a record $100 billion in capital investment and more than half of all the unicorns in Europe were created in the last year.
Companies looking to enter Europe will have access to both great talent and great business incentives. Despite current headlines, it is interesting to read that technology remains the most attractive sector for VC investment. While Europe does have its hubs for tech start-ups – the UK, Germany, Scandinavia, and France are all expected to have the most interesting investment opportunities over the next 12 months in Europe – but covering so many countries can present a challenge for any investor, therefore, it’s important to understand which countries would be best for your business, and which countries offer the best talent.
Knowing where to start is often the biggest hurdle. This is where Investment Promotion Agencies can help. Situated across the world, the objective of these agencies is to help attract investment to a country, state, region, or city. Not only do these agencies help companies get set up in a specific country they often offer a number of additional incentives, including financial investment. The Republic of Ireland is a notable example of a country that has succeeded in encouraging some of the world’s biggest companies to make it their home. Ireland is the European Headquarters for both Facebook and Google. It has become an attractive hub for technology companies due to the appealing tax and employee incentives it offers.
At Globalization Partners, we work alongside Investment Promotion Agencies to help businesses establish themselves in overseas locations. Hiring globally is not without its challenges. There are a number of considerations including:
- Logistics – adding an international team member and creating a truly global team has unique challenges. The first step to any global hire is to figure out the logistics. It is not simple – you need to set up a legal structure first. This can be costly and can take months.
- Finding the right talent – while broadening the talent pool is an undeniable benefit of hiring a remote, global team, there is still a challenge involved with attracting the right candidates to apply.
- Laws and regulations change fast. It is a full-time job just keeping up in your country of origin and creating compliant employment contracts as per each countries’ rules and regulations can be a huge challenge. As you add employees living in other countries to the list, the resources required to stay up-to-date and compliant will multiply.
This is where a global employment platform comes into play. It provides fast and simple insight and access to the most current information and tools needed to enable a company to establish a local presence anywhere in the world covering everything from hiring personnel to managing compliance, legal and tax requirements, and payroll.
Looking ahead, the outlook for fast-growth VC-backed tech companies looking to expand in Europe looks bright. According to the report, 57% agreed that tech start-ups offered the most attractive funding opportunities. Operating a borderless approach will put them in a stronger position to embrace a wider talent pool, draw on the benefits of digital transformation, and build flexibility into their workplace culture. But to take real advantage of the benefits today’s internationalised workforce has to offer, employers will need to ensure that they stay ahead of the complexities of international employment including managing the ever-changing rules and regulations to payroll policies and local labour laws. The ability to attract and retain the best talent needed to drive businesses forward will become a key competitive advantage. Organisations that do so will be ideally placed to compete on the global stage to translate domestic success into sustained international growth.
