From fragmented markets to risk-averse capital, European startups face more structural barriers to scale than their US counterparts. Abakar Saidov, co-founder and Executive Chairman of Beamery, argues it’s not a lack of innovation that’s holding Europe back, it’s the systems around it. His message to policymakers, corporates, and founders? Stop playing small.

Ask Abakar Saidov why Europe still struggles to produce global enterprise software champions, and his answer is clear: we’re not lacking ideas, we’re lacking follow-through.

“It’s not that we’re not starting enough, there are plenty of early stage startups” he says. “It’s the scale-up stage that requires more support.”

As the co-founder of Beamery, the AI platform for Workforce Transformation used by global enterprises that has scaled across Europe and the US - he’s experienced both ecosystems up close and sees a consistent problem in Europe’s structure, mindset, and market conditions.

The myth of the single European market

“The biggest issue in Europe is it isn’t one market,” he says. “The US has fifty states, yes, but the regulatory environment, the language, the cultural attitudes to purchasing technology? It operates as one.”

By contrast, Europe’s fragmented landscape makes scaling vastly more expensive. Each country brings its own regulations, tax systems, compliance expectations, procurement models, and languages. Saidov has seen firsthand how this slows startups down.

And it’s not just the geography. The buyer behaviour in Europe adds another layer of difficulty.

“There’s a mentality problem in European corporates about never being first,” he says. “In the US, companies are willing to take bets. In Europe, they want three reference clients before they’ll even talk to you.”

This reluctance to adopt new tech stifles growth. It also creates fewer liquidity events, meaning fewer founders re-enter the ecosystem with experience and capital, and fewer corporate acquirers to create those exits in the first place.

A missing layer of talent and capital

Saidov is quick to acknowledge the strength of Europe’s engineering talent. But he argues the gap isn’t technical, it’s operational.

“There’s talent everywhere,” he says. “The question is: what’s missing, and when? And often, it’s executive talent: CMOs, CROs, people who’ve done the scale-up journey before.”

Beamery has frequently had to hire this talent from outside Europe (often from the US) because local supply is so limited.

And capital follows the same pattern. “US investors are more willing to make bets on ideas and teams, especially in enterprise software,” he says. “Europe is more focused on predictable returns. Investors want to know how you’re going to get to breakeven, not how you’re going to dominate a category.”

The result? Fewer bold bets. Fewer breakout companies. More early exits.

“People in Europe do it once, then become an operating partner at an investment fund. In the US, they do it again, and again, and again. If you look at the global tech champions, a huge number are built by serial founders.”

Conventional wisdom is wrong

For Saidov, one of the most damaging bits of advice in the European playbook is the idea that startups should “get one market right before expanding.”

“I fundamentally disagree,” he says. “That approach leads you to over-optimise your product for one market, and when you try to expand, it doesn’t translate.”

Instead, Beamery took inspiration from Israeli startups: expand to the US early, hire US-based talent quickly, and maintain your European roots without moving your headquarters. “The US is a more expensive place to build companies, talent costs more, but it’s much more efficient in terms of revenue generation,” he says. “Europe is more cost-efficient, but less effective at commercial scaling.”

Policy and ecosystem fixes

So what would help? Saidov has a few clear answers:

• Streamline regulations: “Europe needs to stop trying to be unique in 28 different ways,” he says. He points to the legal industry’s One-NDA initiative as a model: simple, consistent templates that make business faster and more predictable.
• Incentivise adoption: “Governments should provide tax credits for companies that buy from European enterprise software startups,” he says. That would support both local industry and innovation at the same time.
• Focus, don’t generalise: “Governments need to be specific, not generic,” he adds. “Pick a few sectors where you want innovation to happen and make it really attractive to innovate there.”
• Support second-time founders: Beyond capital, founders need mentorship and operator networks to scale. Saidov argues Europe must do more to keep experienced entrepreneurs building, not just investing or advising.

A more ambitious mindset

Despite the challenges, Saidov sees real potential in Europe’s startup ecosystem.

“It’s not about changing who we are,” he says. “It’s about building the structures and expectations that allow more founders to go further.”

That means rejecting the idea that early exits are the goal, that software is an expense rather than a growth driver, and that one market is enough. It means building policy, funding models, and talent pathways that support ambition, not just invention.

And it means being willing, finally, to bet on people.