In 2003, a 20-year-old Taavet Hinrikus walked into the modest Tallinn office of an obscure video-calling startup named Skype, unknowingly stepping onto a path that would reshape Europe’s tech landscape. Two decades later, Hinrikus—now a billionaire—has co-founded the fintech giant Wise and become a driving force in venture capital with Plural Platform. His journey is emblematic of a larger trend: Europe’s startup renaissance, fueled by a wave of unicorn alumni who went on to build the next generation of billion-dollar companies.
Europe’s Startup Factories
The European tech ecosystem of the early 2000s was a far cry from today’s dynamic landscape. But since 2008, former employees of just 215 unicorns have gone on to create 1,650 startups, according to data from Accel and Dealroom.co. Some countries have proven particularly fertile ground. Sweden, for example, produced Spotify and Klarna—companies whose former employees have since founded 123 startups. King.com, the gaming powerhouse behind Candy Crush Saga, has seen 43 ex-employees launch their ventures.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
Skype, where Hinrikus got his start, has an impressive legacy. The company’s alumni have gone on to found 31 startups, including Wise and the ride-hailing platform Bolt, collectively raising $3.5 billion in funding. This cycle of entrepreneurship has turned unexpected cities—like Tallinn—into thriving tech hubs, as over half of these founders choose to launch their businesses in the cities where they first cut their teeth.
The Risk-Takers Who Changed The Game
For European startups, breaking into the big leagues wasn’t easy. Harry Nelis, a partner at Accel, recalls how risk aversion held many would-be founders back in the early 2000s. When interviewing candidates, he always asks, “What’s the riskiest thing you’ve ever done?” For him, it was backing Spotify—a bet that, at the time, seemed like a moonshot.
“The biggest mistake in venture isn’t losing money—it’s missing the outlier,” Nelis says. His early experiences in Silicon Valley highlighted a stark contrast: while Americans embraced risk, Europeans tended to opt for stable careers over entrepreneurial leaps. Tom Blomfield, co-founder of Monzo and GoCardless, has argued that the UK’s culture of “knowing your place” stifled ambition. His fellow GoCardless co-founder, Matt Robinson, disagrees but acknowledges that in 2011, starting a company in Europe was still seen as unconventional.
The Power Of Role Models
Success breeds success. In the early days, European founders lacked experienced mentors to guide them. Ilkka Paananen, CEO of Supercell, recalls how, when building his gaming unicorn, he had few European tech leaders to call for advice. That has since changed.
Hinrikus, for instance, watched Skype’s co-founder Niklas Zennström turn a small startup into a unicorn. “He was just an average guy,” Hinrikus recalls. “If he could do it, why couldn’t I?” That mindset shift, coupled with improved access to funding and talent, has propelled Europe’s founder ecosystem forward.
From Unicorns To Kilocorns?
With Europe’s tech pipeline now established, founders are thinking bigger than ever. Robinson recounts a conversation with a startup aiming to become the world’s first kilocorn—a private company valued at $1 trillion.
“I couldn’t have imagined hearing that in 2011,” he says.
Meanwhile, the cycle continues. Some of the biggest names in European tech, like Monzo, have become “founder factories” themselves. The banking unicorn has already spawned 23 new startups, often started by teams of former employees. Rather than resisting the trend, Monzo celebrates it. “We don’t believe in keeping people at all costs,” says VP of People Experience Tara Ryan. “We even have an internal website dedicated to our alumni who have gone on to found companies.”
The European Dream
Europe’s tech scene has evolved from a scrappy underdog to a global powerhouse. Unlike the past, when promising startups were swiftly acquired by U.S. giants—Skype by eBay, DeepMind by Google—today’s European unicorns are standing their ground. Spotify, once a risky Accel bet, is now a $125 billion titan battling Apple and Amazon on the global stage. For Hinrikus, the transformation is proof that Europe has its version of the American Dream. “We’re showing time and time again that success isn’t just an American phenomenon,” he says. “It’s happening right here in Europe.”
