The internet runs on European inventions. MySQL powers Facebook, Linux runs 96% of supercomputers, Bluetooth connects your headphones, and MP3 changed the music industry – all created in Sweden, Finland, and Germany. Yet when people hear “tech innovation,” most picture Silicon Valley, not Stockholm or Tallinn.
This view overlooks a remarkable reality: Europe has created over 600 unicorns (startups valued above one billion dollars) and is behind technologies that form the foundation of modern IT, while continuing to produce some of the world’s fastest-growing companies.
The narrative “Europe only regulates but doesn’t innovate” is misplaced. Yes, European venture capital represents just 5% of global VC (compared to 52% in the US). But this statistic masks extraordinary concentration of success. Sweden produces more tech startups per capita than anywhere except Silicon Valley. Estonia has more unicorns per capita than any other country in the world. And in 2024, the UK attracted $14 billion in startup funding – a year-over-year increase of 22% that defied the global downturn.
True, not everything is rosy – especially in the AI era, we remain on the sidelines of the great US-China showdown. But I also don’t believe Europe is doomed to fade away or that nothing interesting is being created here. Let’s look at what interesting things could carry the “Designed in Europe” label...
Foundational Technologies You Might Not Have Known Were European
The most surprising discovery isn’t about startups – but about the building blocks of modern technology.
Tim Berners-Lee, a British computer scientist at CERN in Switzerland, invented the World Wide Web in 1989. Linus Torvalds, a twenty-one-year-old Finnish student, released Linux in 1991 with the comment that it was “just a hobby, won’t be big and professional.” Today Linux powers virtually all servers, Android phones, and cloud infrastructure.
MySQL, the database under the hood of much of the internet (including Wikipedia, Facebook, and every WordPress site), was created by two Swedes and one Finn in 1995. Bluetooth was invented at Ericsson in Lund, Sweden – they named it after a 10th-century Danish king who unified warring tribes, and the logo combines his runic initials. MP3 came from Germany’s Fraunhofer Institute, where researchers persisted despite Sony and Panasonic rejecting the technology because “CDs work fine.”
These are technologies that enabled the digital age – all invented by Europeans who are largely forgotten today.
Classic European Tech Giants
Spotify – Sweden
Spotify transformed music consumption from a Swedish apartment in Stockholm. Founded in 2006 by Daniel Ek and Martin Lorentzon, it now serves 713 million monthly active users and 281 million paying subscribers. In 2024, Spotify reported its first annual profit ever: €1.138 billion. Ek’s personal fortune of $8.7 billion makes him wealthier than any musician in history – an irony not lost on the industry he disrupted.
Skype – Estonia
Skype represents perhaps the most influential European tech story. While Swedish and Danish entrepreneurs provided business direction, the software itself was created exclusively by Estonian developers – Ahti Heinla, Priit Kasesalu, and Jaan Tallinn – in a former Soviet research complex in Tallinn where the USSR assembled its first computer. Microsoft bought Skype for $8.5 billion in 2011.
The “Skype mafia” that emerged transformed Estonia into a tech powerhouse. Roughly $150 million stayed in the country from various exits and funded over 30 tech entrepreneurs. Taavet Hinrikus, Skype’s first employee, co-founded Wise (formerly TransferWise), which now processes over $6 billion in monthly transfers.
ARM – United Kingdom
ARM, spun off from Acorn Computers in Cambridge in 1990, designs chip architecture found in 99% of smartphone processors. Over 300 billion ARM chips have been shipped. Every iPhone, every Android, every smartwatch uses ARM technology – designed in Britain.
Fintech Unicorns Rewriting Global Banking
Revolut – United Kingdom
Revolut, founded in London in 2015, reached a valuation of $75 billion in November 2025 – surpassing the market cap of NatWest, Lloyds, and Barclays. With 65 million customers in 48 countries and $1.5 billion net profit in 2024, Revolut has become Europe’s most valuable private company.
CEO Nik Storonsky, born in Russia and trained as a physicist, conceived the multi-currency card when frustrated by exchange fees while traveling. His co-founder Vlad Yatsenko, a Brit of Ukrainian origin, previously worked at Deutsche Bank. Storonsky renounced his Russian citizenship in 2022 following the invasion of Ukraine.
Klarna – Sweden
Klarna invented “buy now, pay later” from Stockholm in 2005. CEO Sebastian Siemiatkowski met his co-founder when they were teenagers flipping burgers at Burger King; he later lived on welfare benefits after a hitchhiking adventure before returning to business school. Klarna’s IPO in September 2025 on the NYSE raised $1.37 billion – the largest IPO of 2025 – valuing the company at roughly $16-17 billion. Over 40 employees became millionaires. Klarna now serves 93 million users in 26 countries.
Adyen – Netherlands
Adyen, the Dutch payment processor, takes a different path: purely organic growth, no acquisitions. Founded in Amsterdam in 2006, Adyen now processes over $900 billion annually in transactions for clients like Spotify, Netflix, Uber, and Microsoft. Market cap exceeds €55 billion. When eBay replaced PayPal with Adyen in 2018, one customer compared it to “switching from Nokia to iPhone.”
Wise – Estonia/United Kingdom
Wise demonstrates how the Skype ecosystem multiplied. The legendary founding story: Hinrikus (paid in euros) and Käärmann (paid in pounds with an Estonian mortgage in euros) met at a party. They devised a peer-to-peer system – Hinrikus deposited euros into Käärmann’s Estonian account; Käärmann deposited pounds into Hinrikus’s British account. This centuries-old hawala concept, modernized, created Estonia’s first two billionaires.
European AI
DeepMind – United Kingdom (acquired by Google)
The narrative that AI is purely American ignores a critical fact: Google AI’s crown jewel was British. DeepMind was founded in 2010 in London by Demis Hassabis (chess prodigy and game designer), Shane Legg (New Zealand ML researcher), and Mustafa Suleyman. Google bought DeepMind for £400 million in 2014 – outbidding Facebook. DeepMind subsequently created AlphaGo, AlphaFold, and now powers Google Gemini models. In 2024, Hassabis won the Nobel Prize in Chemistry for AlphaFold’s breakthrough in protein folding prediction.
Mistral AI – France
Mistral AI represents Europe’s most aggressive challenge to OpenAI. Founded in Paris in April 2023 by three French AI researchers from DeepMind and Meta – Arthur Mensch, Guillaume Lample, and Timothée Lacroix – Mistral raised a record €105 million in seed funding mere weeks after founding. By September 2025, Mistral reached a €14 billion valuation after ASML acquired an 11% stake.
ElevenLabs – Poland
ElevenLabs, founded by two Polish engineers frustrated by poorly dubbed American films, reached a $6.6 billion valuation. Their AI voice synthesis powers character voices in Fortnite, major news media, and audiobook publishers.
Black Forest Labs – Germany
Black Forest Labs, founded in Germany’s Black Forest in August 2024, shows how European researchers can create world-class AI. The founders – Robin Rombach, Andreas Blattmann, Patrick Esser, and Dominik Lorenz – originally created Stable Diffusion at Munich University. Their FLUX models now power image generation for Adobe, Meta’s Instagram filters, Canva, and xAI’s Grok.
Lovable – Sweden
Lovable, a Stockholm startup founded in November 2023, achieved something unprecedented: $100 million in annual recurring revenue within 8 months – faster than OpenAI, Cursor, or any software company in history. The AI “fullstack engineer” allows non-programmers to describe features in natural language and generates complete web applications.
Lovable raised €170 million in July 2025 at a €1.8 billion valuation. With just 45 employees generating approximately $2.2 million revenue per employee, Lovable represents the efficiency European startups can achieve. The company creates 25,000+ apps daily.
Gaming Powerhouse
Supercell – Finland
Supercell generated nearly $3 billion in revenue in 2024 – its best year in a decade. Clash of Clans alone has earned $5.97 billion lifetime with over 600 million downloads. Tencent bought 84.3% of Supercell for $8.6 billion in 2016. With fewer than 1,000 employees, Supercell is possibly the most efficient gaming company ever.
King – Sweden
King, creator of Candy Crush Saga, achieved $7.8 billion in lifetime revenue from a single game. Activision bought King for $5.9 billion in 2016; Microsoft subsequently acquired the entire package in 2023.
With these two studios, one cannot help but acknowledge their financial success, but from an ethical standpoint, they’re developers of some of today’s worst games in terms of addiction, etc. So thumbs down for that.
CD Projekt – Poland
CD Projekt tells a story of Eastern European gaming excellence. Founded in 1994 in Warsaw with $2,000 in capital by two friends selling pirated games, CD Projekt evolved into the most valuable European gaming company by 2020. The Witcher series and Cyberpunk 2077 have sold over 100 million copies combined.
Ubisoft – France
Ubisoft, founded by five Guillemot brothers in 1986, created Assassin’s Creed, Far Cry, and the Tom Clancy series. Despite recent challenges, they remain one of the largest AAA publishers in the world with over 17,000 employees.
And of course, a respectable lineup of Czech studios – see below...
Why Europeans Underestimate Themselves
Why is perception and our approach often so different? Silicon Valley embraces “move fast and break things” – failure is a badge of honor. In Europe, failure carries stigma – bankruptcy laws make starting over harder. Americans call it “venture capital” (opportunity); Europeans call it “rizikový kapitál” (caution).
European investors typically demand clear paths to revenue early, while American VCs fund “moonshot” ideas. Average exit in Silicon Valley: $403 million. Average exit in Berlin: $53 million. European pension funds invest just 0.02% in venture capital compared to 2% for American pension funds.
Which Countries Are Thriving?
Sweden produces more tech startups per capita than anywhere except Silicon Valley. The “Spotify effect” created a flywheel: Spotify alumni founded 124 VC-backed startups; Klarna alumni founded 91.
Estonia – the e-residency program attracted 114,000 e-residents from 185 countries who have created 30,600+ companies. Estonians can vote, sign contracts, and file taxes 100% online. The country has created 12 unicorns – the most per capita in Central and Eastern Europe.
France – the La French Tech program, backed by a €10 billion innovation fund, created Station F – the world’s largest startup campus. France now has 30+ unicorns.
Germany – leads in industrial and deep tech with 31 unicorns including Celonis, N26, and Delivery Hero. Defense AI company Helsing reached a $5.4 billion valuation – with Spotify’s Daniel Ek as chairman of the board.
Poland – has become a gaming powerhouse with 490 gaming companies employing 12,000+ people. 96% of Polish games are exported.
Finland – leveraged Nokia’s fall for startup success. Thousands of skilled engineers laid off after Nokia’s collapse powered Supercell, Rovio (Angry Birds), and a new wave of deep tech companies.
BONUS: 20 Surprising Brands You Might Not Have Known Are European
And now for the more fun part. The following list contains brands you encounter every day – and probably didn’t know they belong to Europeans.
* Budweiser, Bud Light - Belgium“American beer” has belonged to Belgian AB InBev since 2008 ($52 billion acquisition)
* Red Bull - AustriaFounded 1984 near Salzburg, 12.6 billion cans sold in 2024
* Trader Joe’s - GermanyOwned by Aldi Nord since 1979 – over 40 years!
* Nutella, Ferrero Rocher - Italy
* now owns Butterfinger, Keebler, Famous Amos, and as of 2025, Kellogg’s
* Nestlé brands - SwitzerlandHot Pockets, DiGiorno, Stouffer’s, Gerber, Carnation, Coffee-Mate
* Ben & Jerry’s - Netherlands/UKOwned by Unilever – along with Hellmann’s, Dove, Axe
* Captain Morgan, Smirnoff - UKOwned by British Diageo
* Jeep, Chrysler, Dodge, Ram - NetherlandsStellantis (NL) has owned these “American” icons since 2021
* Aleve, Claritin, MiraLAX - GermanyOwned by Bayer (founded 1863)
* Flintstones Vitamins - GermanyAlso Bayer – including Monsanto ($66 billion acquisition)
* Adidas - GermanyFounded by Adolf “Adi” Dassler in 1949 in Herzogenaurach
* Puma - GermanyFounded by his brother Rudolf in 1948 – after a quarrel they split the family business
* IKEA - Sweden€45 billion revenue, ~1 billion meatballs annually
* H&M - Sweden4,000+ stores globally
* Zara - Spain€38.6 billion revenue, design-to-shelf in 15 days
* Primark - IrelandExpanding in the US – 60 stores by 2026
* Booking.com - NetherlandsFounded 1996 as Bookings.nl, today $100+ billion valuation
* Candy Crush - SwedenKing (SE) – $7.8 billion lifetime revenue
* Clash of Clans - FinlandSupercell – $3 billion in 2024
* Fairmont Hotels, The Plaza NYC - FranceOwned by Accor (5,700+ hotels)
25 Czech Companies Shaking Up the World
* Beat Games – Creators of Beat Saber, the most successful VR game of all time (4+ million copies, $250+ million revenue). Meta bought them in 2019.
* Prusa Research – The world’s second-largest 3D printer manufacturer with revenue over €160 million annually. Customers include SpaceX, NASA, CERN, and MIT – all without a single crown from investors.
* Avast – Protected 435 million users in 160 countries before NortonLifeLock bought it for $8 billion. Founded during communism in 1988.
* JetBrains – Developer tools used by 16 million programmers including 90 Fortune 100 companies. They also created Kotlin, the official language for Android.
* Productboard – The most valuable Czech unicorn ($1.7 billion), product management software used by Microsoft, Zoom, and Disney.
* Mews – Hotel software with a valuation exceeding $1.2 billion, managing 350,000 hotels in 85 countries. Over $8 billion in payments flow through it annually.
* Kiwi.com – Invented “virtual interlining” – combining flights from different airlines into one ticket. They process 100 million searches daily.
* Warhorse Studios – Kingdom Come: Deliverance sold over 10 million copies, the sequel had one million sales on day one. They gave Czech history a global gaming face.
* SatoshiLabs/Trezor – Created the world’s first hardware crypto wallet and first bitcoin mining pool. A billion-dollar business without a single investor.
* Rohlik Group – European leader in online grocery with a $1.6 billion valuation. In November 2024, they closed a partnership with Amazon in Germany.
* SCS Software – Euro Truck Simulator 2 sold over 13 million copies and 80 million DLCs. In Steam’s top 100 for over a decade.
* Rossum – AI document processing platform raised $100 million in one round – one of the largest in Central European history. Clients: PepsiCo, Bosch, Siemens.
* Amanita Design – Machinarium sold 4 million copies and defined indie game aesthetics. Five Independent Games Festival awards.
* Madfinger Games – Mobile games downloaded over 300 million times, #1 in more than 100 countries. Founded by veterans of Czech Mafia.
* Wube Software – Factorio has 98% positive rating on Steam (one of the highest ever) and revenue exceeding $300 million.
* Resistant AI – AI fraud detection with investment from Google Ventures. Verified over 150 million documents for PayPal, AXA, and Dun & Bradstreet.
* Kentico – CMS platform for 35,000 websites in 120 countries, bootstrapped to $42 million annual revenue. Clients from Red Cross to Koch Industries.
* Better Stack – DevOps monitoring for 200,000 developers, profitable since 2023. Used by Time Magazine, Salesforce, UNICEF.
* Deepnote – Collaborative data science platform with 300,000 users. Used by 80 of the world’s top 100 universities.
* Phrase (formerly Memsource) – AI translation platform for 500+ languages, acquired by Carlyle Group. Clients: Uber, Lufthansa, Zendesk.
* SOTIO Biotech – The largest privately funded research in Czech history (€280 million). Developing cancer immunotherapy with Merck.
* Contipro – One of the three largest hyaluronic acid manufacturers in the world. Half of the 200 employees are scientists.
* Safetica – Data protection for 500,000 devices in 120 countries, three awards at RSAC 2025. Clients: Coca-Cola, McDonald’s.
* CDN77 – Prague-based content delivery network serving global streaming platforms and media.
* Windy – Weather app used by pilots, sailors, and meteorologists worldwide. The most popular independent weather app.
European Innovation Deserves Recognition
The technologies on which modern digital life stands – the web, Linux, MySQL, Bluetooth, MP3 – were created in European universities and research labs. The streaming service transforming music (Spotify), the architecture in every smartphone (ARM), payment systems processing hundreds of billions annually (Adyen, Wise, Klarna) – all European.
AI researchers who created the foundations of modern language models (DeepMind), developers building the fastest-growing software company in history (Lovable), gaming studios generating billions from mobile screens (Supercell, King) – European.
Next time someone says Europe “only regulates,” remind them: The device in their pocket runs on an ARM chip, connects via Bluetooth, streams through Spotify, and processes payments through Adyen.
The future is being built in Stockholm, Paris, Tallinn, and Munich – not just San Francisco.
P.S. This doesn’t mean we shouldn’t step up, regulate less, and support and celebrate innovation and even failure much more. I just don’t think it’s fair rhetoric to say nothing interesting is being created here in Europe and everything is in China and the USA... ✌️
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit newsfromthewoods.substack.com