Europe hasn’t launched a single €100 billion tech IPO since SAP. Meanwhile, billion-dollar companies are emerging in the U.S. and China at an increasing rate. For example, Tesla transformed the U.S. automotive and energy markets with electric vehicles and battery tech, while China’s BYD has grown from battery maker to a global leader in EVs and renewables.
The problem in Europe isn’t a lack of talent but rather the absence of effective systems that enable innovation to scale. This systemic gap prevents promising startups from growing into industry giants. That’s especially true in energy tech, where infrastructure, capital, and regulation must work in tandem. European startups often struggle with all three.
To understand the scope of this challenge, take a look at Europe’s IPO drought: SAP went public in 1972. Since then, no European tech company has crossed the €100 billion valuation threshold. In that time, the startup ecosystem has matured, venture capital has grown, and governments have launched various innovation programs. Yet the kind of industrial leverage seen in the U.S., through companies like Tesla, Nvidia, or Enphase, remains largely absent in Europe.
The root cause lies deeper: Europe has talent, entrepreneurial drive, and cutting-edge technology, but lacks a scalable system to turn them into global champions.
Energy Tech as a geopolitical industrial opportunity
China is electrifying its economy nine times faster than the global average. It’s not just deploying solar and wind at a record pace; it also dominates key technologies like batteries, storage systems, and grid infrastructure. The U.S., now again the world’s largest oil producer, is paradoxically experiencing a renewable energy boom, particularly in Republican-led states where investors are beginning to view energy tech as a new growth engine.
Europe, by contrast, often plays catch-up. But the fundamentals are strong: fossil fuel imports are expensive and geopolitically fragile. In 2024 alone, Germany spent over €64 billion on oil and gas imports. According to the think tank Ember, Europe saved $59 billion in fossil fuel import costs over the past five years thanks to clean electrification. That’s capital urgently needed for industrial renewal, grid upgrades, and strategic innovation.
And yet: this stands in strange contrast to current policy. The new EU–U.S. trade agreement includes a promise from the European Commission to import $250 billion worth of energy from the U.S. annually, more than triple the 2024 figure of $75.9 billion. Energy traders and analysts across Europe consider this figure wildly unrealistic. Even if the EU imported all its gas from the U.S., the number would barely reach $170 billion. But more importantly: how does such a fossil-heavy promise align with Europe’s own climate goals and its strategic interest in energy sovereignty?
Three structural levers Europe must pull
If Europe wants to lead in energy tech, it needs deep reform at three levels:
1. Mobilise institutional capital
EU frameworks like Solvency II and AIFMD currently discourage pension funds and insurers from participating in VC markets. Yet these long-term investors could be essential in scaling energy tech infrastructure. Dedicated mandates for energy tech, linked to tax incentives or public-private co-investments, could change the game. France’s “Tibi” initiative, which channels pension fund capital into high-growth tech companies, offers a promising template.
2. Make public capital VC-compatible
Europe has strong public development banks, but weak operational structures when it comes to speed, risk, and entrepreneurial governance. Most public funding still follows traditional grant logic: heavy paperwork, limited flexibility. What’s needed are autonomous, VC-style units: small teams with clear mandates, agile governance, and accountability for results. Countries like Israel or Canada show what’s possible.
3. Build (don’t import) Energy Tech champions
Europe can’t afford to be just a buyer of American or Chinese innovation. It must build its own champions. That means using public procurement to create early markets, supporting repeat founders, and funding energy tech accelerators and scale-up vehicles. The U.S. is unlocking billions in local manufacturing via the Buy American Act; Europe needs a comparable vision: Build European. Not just for chips, but for batteries, heat pumps, grid software, and clean industrial systems.
Riding the European electric wave
Europe has no oil reserves, but it does have capital, technical know-how, and a strong industrial base. It has no Trump, but it does have political pressure for transformation and growing public support for a clean direction. The foundations for energy tech to become a defining European industry are in place. What’s missing is political coordination and the will to turn this into a true industrial strategy.
The transformation to “Electric Europe” isn’t a matter of climate. It’s a matter of competitiveness. If we want to ride this wave, we need to act now, with capital, coordination, and a true industrial strategy. And who knows: Europe’s next SAP might just emerge from Berlin, Rotterdam, or Marseille.
