The European Tech Popcorn Machine #1

Intro

I've been thinking about launching a LinkedIn newsletter for a while (always curious to try new things), wondering how I could truly add value for my readers. But as they say, done is better than perfect! So, I'll kick things off by sharing insights that matter to my team and clients at Wyngs.co - ???? + ???? ???????? , updates from the European Champions Alliance Alliance, and a few highlights that shaped my week. I hope you enjoy this mix! Let me know what you'd love to hear more about—your feedback would mean a lot.

Scaling Tip of the Week

How to Create a European Champion

This week, I want to tackle a common misconception I often encounter when speaking with French start-ups and scale-ups: the fear of entering the German market.

There seems to be a widely held belief that Germany is a particularly tough market to crack. It's true that many start-ups have struggled to establish a lasting presence there. But there are also notable success stories—companies like Doctolib, Younited, Deepki, Silvr, Malt, Swan, 360 Learning and Matera have managed to thrive. So, what's their secret? It usually boils down to solid preparation, a strong team, and seasoned entrepreneurs that care about the market.

The idea that the German market is difficult can become a self-fulfilling prophecy. Entrepreneurs hear it's hard, approach it half-heartedly, fail, and then blame the market. But is it really the market's fault? I'll be compiling a list of scale-ups that have successfully entered and maintained their position in Germany, some of which I've already featured in my podcast "Go-to-Germany Stories". Have some ideas? Let me know!

In my (admittedly biased) view, the German market is no more challenging than any other foreign market. Some French startups might feel that countries like Spain (since many French people speak Spanish and feel a closer cultural connection) or the UK and US (because "everyone speaks English, right?") are more accessible for French companies. But as we've seen in many cases, those markets often turn out to be either economically less interesting or even more challenging. So, it's not exactly a fair perception.

Here’s some advice on how to approach entering a new market:

1. Do your homework: Start by conducting thorough desk research and interviewing entrepreneurs who’ve done it before, as well as potential partners and clients. Get familiar with the market before diving in.
2. Set realistic goals: Define clear, achievable targets. Be cautious not to overpromise to yourself, your team, or your investors. A conservative plan is often the smartest approach.
3. Create a solid go-to-market strategy: Make sure you have a detailed plan in place, along with the necessary resources to execute it effectively.
4. Assign leadership: Ensure someone (either internally or a consultant) is fully dedicated to leading the project, and establish a proper governance structure.
5. Stay humble and foster a learning mindset: Be open to learning from the market, and encourage your team to do the same.

Then, take it step by step. You don't need to rush.

In a recent panel at B2B Rocks in Paris on the topic of How To Scale Your Operations For Growth? we shared the following Scale-Up Journey. Replay here.

If you want to talk about your international growth, please book a meeting with me here, if you want to know if you're fit for the German market, please try our Go-to-Germany Readiness Audit in a few simple questions (but with a great analysis). I also host a short live webinar in French "Comment réussir son Go-to-Market en Allemagne ???? !" on the 6.11. Interested? Please sign-up.

Agora Highlights

Insights from events I attend or will attend and the ones I missed

• 18.09. France Digital Day in Paris was a blast, and I was thrilled to organize a fascinating round table on?European Defence Tech and its role in European Sovereignty.
• 26.09. ECA Deeptech Summit?in Amsterdam. Find the highlights?here, here, and?here.?This event focused on scaling startups to a European level in Cybersecurity and Quantum.
• 25. + 26.09.?B2B Rocks?in Paris is an exciting international event on B2B SaaS with excellent panels. I was thrilled to participate in the panel mentioned above.
• 10.10. Arrtist, the German counterpart event on B2B SaaS. I heard it was excellent, but I could not go. I will try it next year.
• 22.-24.10. ITSA in Nuremberg is the largest exhibition for IT security in Europe. This is my first time, and I am excited. It is a must if you want to know what’s going on in Cyber in Europe. Many of our members and partners will be there.
• 24.10. Slush'D in Heilbronn. Unfortunately, I cannot attend as it is at the same time as ITSA. Need to keep this on the agenda for next year!
• 7.-9.11. The 24th Congress of French-German Business Clubs hosted in Paris by the Club Economique Franco-Allemand de Paris - CEFA where I will be moderating a round table with French and German startups
• 11.2.25 The ECA Tech Summit 2025 is in preparation. Check it out! We’ll continue shaping Europe's Future of Innovation, Cybersecurity, and Sustainability.
• 1.-3.4.2025 Incyber 2025 will be held in Lille, France. The ECA will have a joint booth with European Cyber Companies, and I look forward to that.

European Tech News worth mentioning

News on European Competitiveness

After the initial wave of excitement faded, we felt that the Letta and Draghi reports, along with the new European Commission, deserved more attention from entrepreneurs. To shed light on what’s at stake for the European tech ecosystem, we invited Antoine Latran , European Affairs Coordinator at France Digitale , to give us a concise overview. Antoine's insights offer a clear and digestible take on the reports and the implications of the new European Commission. Don’t miss it—it’s a valuable 20 minutes well spent!

Following the development of the European Cybersecurity Certification Scheme (EUCS)

The European Cyber Security Certification Scheme (EUCS) emerged as a response to concerns over data security, as American tech giants like Amazon, Microsoft, and Google dominate the global cloud market. Designed by the European Union Agency for Cybersecurity (ENISA), the EUCS aims to enforce stricter security standards for cloud services in Europe to protect sensitive data and enhance the EU's digital sovereignty.

However, the initiative has sparked opposition from European companies, such as Airbus, who are concerned about flexibility and cost implications, and American firms, who are worried about losing their access to the European market. The ongoing debate highlights tensions between promoting European sovereignty and maintaining global technological collaboration, with lobbying efforts on both sides shaping the future of this digital regulation. An excellent article on the topic is here (in French).

The EU Council has adopted the Cyber Resilience Act!

October 10th, 2024, marks a major milestone for cybersecurity across Europe. The EU Council has adopted the Cyber Resilience Act, introducing cybersecurity requirements for products with digital elements, like IoT devices, to ensure their safety throughout their lifecycle. The regulation harmonizes cybersecurity standards across the EU, applying to all connected devices, except those covered by existing laws (e.g., medical devices, cars). Products will need CE marking to show compliance. This law aims to protect consumers and secure digital products in the supply chain. It will take effect 20 days after publication, with full implementation 36 months later. More info on this here.

Le Coin Franco-Allemand ????????

Perspectives on the Franco-German partnership shaping Europe

Two interesting reports shed some light on French German Cooperation last week, so let’s take a short look.

ARD-DeutschlandTREND Oktober 2024 (link to the full report here)

The report shows that France remains the most reliable partner of Germany, and this trust has remained stable over the long term, despite the divergences at the European level ???? and the domestic difficulties of both countries:

?? 82% of Germans surveyed said France "can be considered reliable".

?? France is far ahead of all the other countries mentioned (USA ???? 54% and Ukraine ???? 40%).

?? France has a very high and constant trust rate since, at least since 2005:

German companies in France: economic situation, perceptions and outlook 2024-2028 (EY Report here).

Germany is one of France's major historical and economic partners. It is the leading foreign investor in France, with over 3,000 companies operating in the country, despite economic uncertainty and strained political ties. The outlook is positive for 2026-2028, though France still faces challenges in attracting German investments due to labour costs and regulatory complexity. France needs reforms in labour costs, taxation, innovation, and ecological transition to stay competitive. A united effort between France and Germany is key for leading Europe in the energy transition and securing its technological sovereignty.

The top concern is the transformation towards a sustainable economy (24%), followed closely by the digital transformation and adoption of AI (22%). Cybersecurity (16%) is also a significant issue, reflecting growing concerns over digital threats. There is indeed a lot of cooperation potential.

Sifted 50: Germany Leaderboard! ????

Welcome to the Sifted 50: Germany Leaderboard, which ranks the fastest-growing German startups by revenue growth.

Combined, the 50 startups have raised €6.98bn in funding and generated revenues of €3.03bn over the past three financial years, employing more than 5,700 people.

The 10 startups with the fastest-growing revenue (using a 2-year CAGR) in Germany are:

1. FINN (697.05%)

2. Orbem (650.97%)

3. charles (506.38%)

4. Tourlane (447.72%)

5. n8n (378%)

6. anybill (328.17%)

7. AILY LABS (316.33%)

8. Likeminded (258.71%)

9. The Exploration Company (254.65%) with a French Founder Hélène Huby

10. akirolabs (237.69%)

??? Car subscription startup FINN tops the ranking after growing its revenue from €1.97m in 2020 to €125.41m in 2022.

Other key headlines:

?? The 50 startups have raised €139.6m and generated annual revenue of €35.8m (in the latest financial year).

?? B2B SaaS is the most dominant vertical (23 companies), followed by fintech (8) and consumer tech (7).

?? 406 investors have backed this year's cohort.

Download the report

Explore the full leaderboard

The Comic Cut

Frame by Frame

I posted it on my LinkedIn last week, and it was quite a success, so I'm posting it again. In German culture, rules and regulations are seen as essential for creating order and efficiency, making them key to success in both personal and professional life. Understanding this mindset is crucial for building trust and reliability when entering the German market or working with German companies.

Numbers That Matter

So far this year, the US has provided more than 65 % of venture capital defence tech investment in Europe. That is not good news for all fans of European Sovereignty. Read more here (Financial Times).

I recently had the pleasure of moderating a great panel on Defence Tech in Europe and its role in European Sovereignty. I link it here for those interested. It is worth listening to or reading.

News Mashup

Stories You Didn’t Know You Needed

• Unless you have been living under a rock this weekend, you have heard that Elon Musk, as crazy as he may be, caught his rocket yesterday, video here and here, just after launching his Robotaxi and his army of Robots. Quite inspiring what one can do on a weekend if I just write this newsletter ;).
• The Nobel Physics Prize 2024 winners, AI pioneers John Hopfield and Geoffrey Hinton (here), regretted their prize shortly after (here).
• Open AI opened its second office in Europe in Paris (here?in French) 18 months after opening its office in London to snatch away some bright engineers.
• The good thing is that “Les Echos” has released its list of 100 female founders who are making a difference in French tech (the list is here in French).

Press Mosaic

Some reading I enjoyed over the weekend

• Can Europe Create an Innovation Economy? (Project Syndicate) (Scoop: #yeswecanifwewant)
• The front line of the tech war is in Asia (The Economist)
• China is writing the world’s technology rules (The Economist)
• The ecosystem is worried’ — new budget proposal will slow startup growth, warn French founders (Sifted)
• Wir brauchen einen deutsch-franz?sischen Sozialvertrag (Handelsblatt)

Do you want to take the conversation further? The European Tech Popcorn Machine Newsletter will be distributed fully on Substack and each second edition here on Linkedin. You can subscribe to the newsletter on substack here.