Written by Maria Alonso
We at SXSW like to keep an eye out on what is happening in the startup community, both in the United States and abroad. To this end, a recent article about European entrepreneurs in TechCrunch "Follow-On Funding For UK Startups Stalls -- France And Germany Accelerate" caught my eye. Written by Mike Butcher, this essay discusses how the lack of second round funding in Europe is impacting innovation in the UK, France and Germany. Through tax incentives, early-stage investors in all three countries have provided seed money to thousands of startups. However, there is little incentive for the financial community and for entrepreneurs to invest in a follow-up round. While these are also issues that the US faces, there are more opportunities beyond the first round of funding through angel investors and VCs.
Butcher's report reaffirms one of the many reasons why SXSW Startup Village has proven to be such valuable asset for European startups. In what way? Because SXSW Startup Village is great place for the international community to connect with US angels and VCs who have more assets to invest. Through their shared experience of funding beyond the first round entrepreneurs, investors and startups learn from each other and help create a healthy global startup community.