Latest news with #unicorns
Wall Street Journal
18 hours ago
- Business
- Wall Street Journal
How Europe Is Losing the Global Tech Race
The U.S. is pulling away from Europe in economic growth—and one big reason is the continent's inability to create new big tech firms the size of Apple, Meta or Google. Europe is generating far fewer unicorns—new, privately held companies that are worth more than $1 billion—than China and the U.S. Unicorns are a good measure of capitalist innovation; they are almost always fast-growing firms that have found a new way of doing something and are shaking up an existing industry.
Forbes
3 days ago
- Business
- Forbes
From Blue Sky Research To Next-Gen AI: Europe's Innovation Crossroads
By Dr. Stefano Tasselli Europe stands at an innovation crossroads. While the United States dominates the AI landscape and China leads in electric vehicle production, the European Union - despite representing 17% of global GDP - struggles to translate its research excellence into market-dominating technologies. New data reveals both challenges and opportunities for European innovation in an increasingly competitive global landscape. The wealth gap between the EU and US, which was 17% in 2002, has widened to 30% in 2023, with 72% of this gap attributed to productivity differentials rather than labor contribution. A stark illustration of this divide appears in market capitalisation figures: US companies' capitalisation is nearly nine times that of EU companies (20.4 versus 2.3 USD trillions), with both East Asia and Arab countries exceeding EU capitalisation. "Only four of the world's top 50 tech companies are European," notes a recent EU competitiveness report. This technological divide is particularly apparent in emerging sectors: Perhaps most concerning is Europe's struggle to retain its innovations. Between 2008 and 2021, EU countries produced 147 "unicorns" (startups valued over $1 billion) - but 40 subsequently relocated their headquarters abroad, primarily to the United States. (Original Caption) Space Center Houston: The Space Shuttle Challenger orbits over a blue Earth ... More speckled with white clouds during its STS-7 mission. This photo was taken by a remote camera aboard the SPAS satellite during the six day flight. Europe's complex regulatory environment may contribute to its innovation challenges. Currently, the EU operates with approximately 100 tech-focused laws and more than 270 digital networks regulators across member states. "The net effect of this burden of regulation is that only larger companies - which are often non-EU based - have the financial capacity and incentive to bear the costs of complying," the EU competitiveness report observes. This regulatory environment creates particularly high barriers for small and medium enterprises (SMEs), which form the backbone of the European economy. While 30% of large European companies utilize AI, only 7% of SMEs do - a critical gap considering that over 90% of European companies are classified as "micro" or "small." As AI development costs escalate - with training next-generation systems potentially reaching $10 billion by 2030 - the ability of European companies to compete independently diminishes without strategic intervention. Research investment reflects similar patterns. The aggregate R&D expenditure in the US reached 762 billion PPP USD in 2022, followed by China at 620 billion. Germany, the highest-spending EU country, invested just 131 billion USD, with all other EU nations below 100 billion. Education statistics tell a related story. Among OECD countries, Canada leads with 54% of its population holding tertiary education, followed by Israel (49%), Japan (48%), South Korea (46%), Taiwan (45%), and the US (44%). None of Europe's four largest economies exceeds 35%. Despite these challenges, several strategic approaches could strengthen Europe's position in the global innovation landscape: Europe could capitalise on its historical role as a global trade leader. The EU has traditionally accounted for nearly 20% of global trade in goods and services. By harmonis ing trade policies and investing in bridge-building technologies across different regions, Europe could position itself as a crucial connector in the global innovation ecosystem. "Recent estimates suggest that this role is declining, with 10% of potential EU GDP hampered by remaining trade frictions in the EU," according to a 2019 European Commission discussion paper - highlighting both the challenge and opportunity. Europe's emphasis on high-quality standards and sustainability presents another avenue for innovation leadership. Recent research suggests that "setting and implementing high standards of design, production and consumption might be a European way to reacquire centrality in the innovation value chain." This approach would leverage existing European strengths, including: The "European dream" of balancing growth with inclusion remains powerful. European countries dominate global rankings of healthcare systems characterized by universal access and defining health as a right rather than a commodity. While aging populations, migration pressures, and public deficits challenge these achievements, they represent distinctive European values that could drive innovation focused on social as well as economic returns. Europe's innovation future depends on balancing its regulatory tradition with growth-oriented policies. Energy costs remain a significant challenge, with European companies paying 2-3 times more for electricity and 4-5 times more for natural gas than their US counterparts. To compete in emerging technologies like AI and quantum computing, Europe must address these fundamental cost issues while creating environments where innovation can flourish within its distinctive model of sustainable, human-centered development. As Antoine de Saint-Exupéry observed, "A pile of rocks ceases to be a rock pile when somebody contemplates it with the idea of a cathedral in mind." Europe's innovation challenge now lies in constructing that cathedral - building on its foundational strengths while adapting to a rapidly changing technological landscape.
Zawya
5 days ago
- Business
- Zawya
APO Group Celebrates Africa Day with a Bold Reminder: We've Been Leading Strategic Communications across the Continent for Almost Two Decades
Africa Day is here, bringing with it the flood of inspirational quotes, curated pan-African playlists, and the sudden resurgence of brands eager to celebrate the continent, if only for a day. But for some of us, Africa is not a campaign. It's not a market. It's home. At APO Group, we don't just 'show up' for Africa Day. We've been here, every day, for almost two decades, amplifying African stories, building brands and reputations, and connecting the continent to the world. Africa is not a monolith. It is 54 nations, over 2,000 languages, and countless nuances that demand deep respect. Understanding it takes commitment. And APO Group, the leading, award-winning pan-African media relations and communications consultancy, has it. APO Group has helped thousands of African CEOs land global coverage, launch pan-African unicorns, and turn local brands into international headlines. This Africa Day, we're not launching a campaign. We're just reminding everyone that if you want to do communications in Africa, it helps to know Africa. At a time when global PR firms headquartered in the USA are announcing their new Africa-focused teams — complete with four pins on a map and a flurry of buzzwords — APO Group is celebrating the one thing no one can copy overnight: authentic, home-grown, on-the-ground experience. From Dakar to Dar es Salaam, Cairo to Cape, APO Group's pan-African team has been delivering real impact across the continent; not just in press releases, but in powerful results. With expert consultants in every region, local insights and expertise, and a reputation built on trust, APO Group is more than a communications consultancy. It is Africa's most established strategic communications powerhouse. 'Africa Day is a reminder of what makes this continent extraordinary – its people, its voices and its unstoppable momentum', said Rania El Rafie, Vice President of Public Relations and Strategic Communications at APO Group. 'Africa is more than a continent to us — it's our home, our expertise, and our commitment.' 'While others are hiring team members for Africa, our people are already embedded in the culture, language, and industries that drive the continent forward.' With clients spanning multinational corporations, African companies and organisations, public sector institutions, NGOs, and other stakeholders, APO Group has earned its reputation as the leading communications partner of choice for organisations serious about Africa. What sets us apart is our remarkable performance: A network that spans all 54 African countries, with local experts in every region; Strategic guidance grounded in local insight; A legacy of hundreds of successful campaigns, from strategic communications to crisis response; Longstanding media partnerships that foster transparency, credibility, and positive storytelling. 'We believe great communication in Africa starts with listening, not just broadcasting. And it takes consistency, not just campaigns,' said Laila Bastati, Chief Commercial Officer at APO Group. 'This is why we've built trust with stakeholders from all over, by showing up year after year, and delivering every time.' While others are just mapping out how to enter Africa's fast-moving markets, APO Group is already there — co-creating growth stories with African businesses, institutions, and communities. 'For us, Africa isn't a new frontier — it's the centre of everything we do,' added Bastati. 'Our track record speaks for itself. This Africa Day, we're building on a legacy.' APO Group is reflecting on a proven track record and preparing for the next decade of growth and storytelling that elevates Africa on the global stage. 'This Africa Day, we're not launching — we're reaffirming,' said Bastati. 'Reaffirming our commitment to the continent, to our clients, and to the people and stories that shape Africa's future.' Work with the team that's already there! Happy Africa Day. From Africa's strategic communications leader. Distributed by APO Group on behalf of APO Group. About APO Group: Founded in 2007, APO Group ( is the leading award-winning pan-African communications consultancy and press release distribution service. Renowned for our deep-rooted African expertise and expansive global perspective, we specialise in elevating the reputation and brand equity of private and public organisations across Africa. As a trusted partner, our mission is to harness the power of media, crafting bespoke strategies that drive tangible, measurable impact both on the continent and globally. Our commitment to excellence and innovation has been recognised with multiple prestigious awards, including a PRovoke Media Global SABRE Award and multiple PRovoke Media Africa SABRE Awards. In 2023, we were named the Leading Public Relations Firm in Africa and the Leading Pan-African Communications Consultancy Africa in the World Business Outlook Awards, and the Best Public Relations and Media Consultancy of the Year South Africa in 2024 in the same awards. In 2025, Brands Review Magazine acknowledged us as the Leading Communications Consultancy in Africa for the second consecutive year. They also named us the Best PR Agency and the Leading Press Release Distribution Platform in Africa in 2024. Additionally, in 2025, the Davos Communications Awards 2025 awarded us the Gold Award for Best PR Campaign and the Bronze Award for Special Event. APO Group's esteemed clientele, which includes global giants such as Canon, Nestlé, Western Union, the UNDP, Network International, African Energy Chamber, Mercy Ships, Marriott, Africa's Business Heroes, and Liquid Intelligent Technologies, reflects our unparalleled ability to navigate the complex African media landscape. With a multicultural team across Africa, we offer unmatched, truly pan-African insights, expertise, and reach across the continent. APO Group is dedicated to reshaping narratives about Africa, challenging stereotypes, and bringing inspiring African stories to global audiences, with our expertise in developing and supporting public relations campaigns worldwide uniquely positioning us to amplify brand messaging, enhance reputations, and connect effectively with target audiences.
Finextra
6 days ago
- Business
- Finextra
The UK needs to embrace ecosystem collaboration to boost fintech
0 This content is contributed or sourced from third parties but has been subject to Finextra editorial review. At recent Innovate Finance Global Summit in London, UK Chancellor Rachel Reeves delivered a powerful message that underscored the country's position as a global fintech leader, and the critical role of innovation in shaping its economic future. It was both a celebration of progress and a call to action. As she noted, the UK attracted $3.6 billion in fintech investment last year, second only to the US. Nearly half of Europe's fintech unicorns call the UK home, and a third of all UK unicorns are in fintech. From AI and digital assets to open banking and smart data, emerging technologies are clearly at the heart of our growth trajectory. The Chancellor's message went beyond the numbers. Her core point was unambiguous: the Government is here to back the builders. To build the future we envision, to stay competitive, and lead globally, with this clear message of commitment, we must also embrace a new mindset, fit for the realities of an increasingly technology-led era. Embedding these innovations into everyday life at scale requires more than just technology deployment. It demands a systems-level way of working. These technologies can't be treated as isolated solutions. Their real power emerges through integration within business ecosystems, across sectors, and throughout society. Take the home-buying journey for example. By integrating open finance and AI, we can create a seamless, end-to-end experience, connecting mortgage brokers, banks, estate agents, and insurers in a co-ordinated value chain. Each stakeholder plays a role in unlocking efficiency, transparency, and better outcomes for the customer. That's the kind of systemic integration that turns innovation into impact. To achieve that, we need deep ecosystem collaboration, shared incentives, and a unifying sense of purpose. Only then can we turn innovation into transformation at scale. Emerging techs are growth engines, but come with their systemic challenges There's no doubt that technologies like real-time payments, agentic AI, and open finance are bringing profound transformation to the foundations of our economy. But with this transformation come deep challenges that cut across every emerging tech domain and require co-ordinated solutions: Interoperability: How do we integrate AI, data-sharing, and digital payments into legacy systems and ensure they work together across banks, fintechs, merchants, and platforms to deliver a seamless experience for end users? Standardisation: In a fast-evolving environment, how do we strike the right balance between enabling agile innovation and agreeing on standards that ensure interoperability and unlock the biggest impact? Regulation: How can we protect consumers and uphold public trust without slowing down innovation, or discouraging commercial growth and investment? Skills: How do we rapidly equip people with the right skills and build the talent pipelines to keep pace with demand? Trust: How do we build public confidence in the privacy, security, and transparency of these new technologies? Customer adoption: How do we raise awareness, demystify new tools, and support everyday users in embracing change? These are not just UK-specific questions, they're global. The nature of emerging technologies is inherently interconnected, cross-border, and fast-moving. That's why the answers must be systemic, not fragmented. From competition to collaboration: Embracing ecosystem thinking To fully realise the promise of emerging technologies, we need to move beyond a siloed, company-by-company approach and think and act like an ecosystem: vision aligned, customer-outcome centred, and collaboration-based. Take open finance for example - it might sound technical on the surface, but at its heart it's about enabling all parts of the financial system to communicate and work together to create better outcomes for everyone: consumers, banks, merchants, fintech businesses, and society, with clear regulatory support. True interoperability isn't something any one organisation can achieve alone. It demands collective action and shared accountability: 'Win-win' business models that reward co-operation alongside competition, ensuring every player in the value chain has the incentive to participate and benefit. Forward-looking funding models that back innovation efforts while protecting consumers and ensuring fair, long-term growth benefits for all participants. Clear liability frameworks that define who is responsible when things go wrong across the value chain, building confidence and clarity across the ecosystem. Above all, customer outcomes must remain at the centre. The technologies we build, the regulations we shape, and the partnerships we forge, all of it must serve creating real improvement to customer's lives and solving real problems. Only by doing this can we gain public trust, understanding, and accelerate truly wide customer adoption. Building a connected future We are living in an increasingly interconnected and unpredictable world. AI, digital payments, open data sharing are evolving at unprecedented speed. Global partnerships are shifting. Public expectations around privacy, ethics, and inclusion are increasingly growing. Now is the moment to get it right and lead technology for the good. Fintech and emerging technologies are not just engines of economic growth, they also open questions for the increasing need for building resilience, privacy, and inclusion. To harness their full potential, we must go beyond simply deploying tools but build with intention. By embracing ecosystem thinking, aligning across regulation, technology, and businesses, and keeping customer outcomes at the core, UK can the lead not just in innovation, but in creating a more inclusive and connected digital future. Let's build it - together. The Gillmore Centre series features authors from the Gillmore Centre of Financial Technology at Warwick Business School as they explore new innovations in fintech from an academic perspective. Keep an eye out for more articles from the Gilmore Centre to learn more about new developments in the field.
Fast Company
21-05-2025
- Business
- Fast Company
What is a ‘zombiecorn'? AI companies are bleeding these startups dry of VC funding
AI startups are the belle of the VC funding ball, and it's coming at the expense of pretty much every other type of company. That's a main takeaway from a report published by Silicon Valley Bank on Tuesday. That report found that roughly 40% of VC funding in the U.S. last year came from venture funds that 'list AI as a focus. Those comprise more than 15% of U.S. VC funds—a number that has doubled over the past five years. 'Put all together, this reflects not only the investor enthusiasm around the space, but also the funds required to properly deploy into capital-intensive hypergrowth AI startups,' the report reads. And with AI companies sucking up a good percentage of overall VC funding, it's left other types of companies battling it out for a smaller piece of the pie—including firms in the infrastructure, applications, and cybersecurity segments of the enterprise software sector. Perhaps relatedly, the creation of 'unicorn' companies—startups that reach a valuation of at least $1 billion—has slowed in recent years. During 2021, for example, there were 138 enterprise software unicorns created. Last year, there were only nine. And none so far this year. The report also points out the rise of 'zombiecorns,' referring to unicorn companies that have poor revenue growth and little hope of raising more money. In effect, for some of these companies, IPO hopes are low, the climate isn't ideal for acquisition, and it's unclear where these companies can turn next for a lifeline. As such, they're sort of scouring the business landscape, like zombies—not yet dead, but with a fading pulse. It's unclear if the overarching economic conditions will improve in a way that could provide some hope to the 'zombiecorns' out there, and other startups outside of the AI space looking to raise money. While the U.S. hasn't seen catastrophic economic numbers yet—GDP, unemployment, and other such numbers have in recent months remained relatively rosy—consumer sentiment is down, and uncertainty abounds due to President Trump's tariffs and other policies. That has many investors waiting on the sidelines for an inkling of what's next. In the meantime, startups may feel the crunch as they hope to go public or raise another round of financing. Investors will likely still invest, the report notes, but they'll be much more selective given the overall environment. 'We may see a 'flight to quality' where investors continue to be extremely selective in their capital deployment—potentially making it even harder to raise the next round,' the report reads. 'Those left in the dust will need to seek an exit.'
