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They should be careful, look at Canada that basically has a pretend industry of "playing startup" based on government and quasi government (bdc, cdpq) money. Di

They should be careful, look at Canada that basically has a pretend industry of "playing startup" based on government and quasi government (bdc, cdpq) money. Direct government investment doesn't work, much better to try and create a climate where VCs want to invest money and have the actual market decide which startups make sense

mahmoudhossam 4y ago
VCs aren't good predictors of proper business sense either, and this economic downturn proved exactly that.
- Nasrudith 4y ago
  I thought the whole VC model was flippantly summarizible as "stupid but works". Basically throwing money at tons of start-ups, in case one of them strikes gold that more than makes up for the failures and outperforms rational models. That is, the whole point of VC is not predicting.
mhitza 4y ago
IMO the EU has great potential for solid startups, however if you'll note about the areas where they are looking to invest (much like it was the case with the Horizon 2020 program), they are chasing unicorns (in unproven futuretech). And I doubt the EU area can catch unicorns with 1.3 billion euros (for the entire program), when the US VCs might as well throw as much money in a startup on a whim. What will likely happen is that they'll invest in some startups, get some development but no additional funding, and the tech/IP will be sold to US companies. I really think that they should focus more in funding startups that act/target locally, than "big ideas". Let's not forget about their last endorsed big idea; Gaia-X, while it has no EU funding (as far as I'm aware), it is this large revolutionary data sovereignty project that has all the buzzwords, from IoT to blockchain, and the complexity of nightmares. Endorsed by Ursula and most likely to remain vaporware.
ikekkdcjkfke 4y ago
The first thing that litterally popped up in my mind was how can i milk this
- l3uwin 4y ago
globalreset 4y ago
The pretend industry like this exists in EU for 15 years or so already.

mahmoudhossam 4y ago

VCs aren't good predictors of proper business sense either, and this economic downturn proved exactly that.

Nasrudith 4y ago
I thought the whole VC model was flippantly summarizible as "stupid but works". Basically throwing money at tons of start-ups, in case one of them strikes gold that more than makes up for the failures and outperforms rational models. That is, the whole point of VC is not predicting.

mhitza 4y ago

IMO the EU has great potential for solid startups, however if you'll note about the areas where they are looking to invest (much like it was the case with the Horizon 2020 program), they are chasing unicorns (in unproven futuretech). And I doubt the EU area can catch unicorns with 1.3 billion euros (for the entire program), when the US VCs might as well throw as much money in a startup on a whim. What will likely happen is that they'll invest in some startups, get some development but no additional funding, and the tech/IP will be sold to US companies. I really think that they should focus more in funding startups that act/target locally, than "big ideas". Let's not forget about their last endorsed big idea; Gaia-X, while it has no EU funding (as far as I'm aware), it is this large revolutionary data sovereignty project that has all the buzzwords, from IoT to blockchain, and the complexity of nightmares. Endorsed by Ursula and most likely to remain vaporware.

ikekkdcjkfke 4y ago

The first thing that litterally popped up in my mind was how can i milk this

l3uwin 4y ago

globalreset 4y ago

The pretend industry like this exists in EU for 15 years or so already.