‘Europtimism’ clashes with 1 in 3 founders wanting out. We need the EU to finally become a true single market
A real tension exists in the European tech ecosystem. Half of investors say it's become more attractive, but one in three founders are considering leaving.
As winter settles in, Europe's founders and investors are viewing a silver lining amidst rising energy costs and inflation. A new survey by Norrsken’s European Impact Index 2026 (EII) reveals that despite the economic challenges, over half of investors believe Europe is a more attractive place to invest, while 85% of founders expect revenues to rise in the next 12 months.
However, one in three founders has contemplated relocating their company outside Europe due to high energy costs and difficulties competing globally, while 36% of investors rated the EU’s approach to innovation and entrepreneurship poorly or very poorly. The study also found that regulatory differences between EU countries have hindered scaling across borders for 52% of founders.
Despite these concerns, Europe is home to promising companies working on clean power and electrification, with investors pouring nearly $2.2 trillion into clean energy and electrification this year, compared to $1.2 trillion into fossil fuels. To capitalize on this momentum, founders and investors insist that policymakers create a more favorable environment for growth, starting with making the EU a true single market.
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