European start-ups grow better due to higher valuation in early stages

Interesting McK report. Nothing new but we still need to repeat this stuff until certain practices in the European startup scene change.

I found this a useful example to demonstrate the effect of a low seed stage valuation: "Take two similar start-ups. One is based in the UK, the other in, say, Italy. In England the company is valued at four million euros, while in Italy it is valued at one million. If during the seed round, when start-up capital is raised, an investment of one million is made, the capital value instantly drops by 25%. Whereas in the United Kingdom, it’s by just 8%. Consequently, in Italy there is very little left over for the subsequent investment rounds. A start-up like that will never, ever become a unicorn.”