Europe could emerge as the world’s next software superpower — but only if it addresses systemic weaknesses that continue to hamper tech scaleups across the continent. That’s the message of a new report by Boardwave and McKinsey & Company, which frames the current moment as a once-in-a-generation opportunity for Europe to lead in global software innovation.
Titled Europe’s Moonshot Moment, the report identifies a convergence of strengths: Europe now accounts for 8 of the world’s top 20 computer science universities, boasts an expanding pool of repeat entrepreneurs, and has seen venture funding rebound to near-record levels after a volatile 2023. Yet scale remains elusive. Only 8% of global software revenue originates in Europe — a figure that has scarcely moved in over a decade.
The report outlines five areas for urgent intervention: expanding late-stage funding, supporting serial founders, improving cross-border talent mobility, accelerating public procurement of European software, and fostering stronger collaboration between government and industry. In doing so, it sets out a roadmap for Europe to rival — and eventually surpass — the software leadership of the US and China.
The findings come amid growing calls for coordinated industrial strategy. Former European Central Bank president Mario Draghi has called on the EU to boost investment by up to €800bn a year to remain competitive globally, arguing that European firms risk long-term decline without structural reform. A recent Forrester forecast suggests European tech spend will grow by 5% in 2025 to €1.4tn, with software and IT services capturing three-quarters of that growth.
The momentum is already visible in some areas. Paris was named Europe’s leading tech ecosystem last month by Dealroom, edging out London on total startup enterprise value and valuation growth. Germany’s Rhine-Main-Neckar region, often dubbed the ‘Silicon Valley of Europe’, remains a stronghold for enterprise software, home to global players such as SAP and Software AG.
Phill Robinson, founder of Boardwave and former CEO of Exact, said Europe must now move “from ambition to execution”. Speaking at the report launch, he said Europe had “all the raw ingredients” — but needed to scale them through shared strategy and deeper networks between founders, funders, and policymakers.
The full Moonshot Moment report is available via Boardwave.
