Europe lags behind the US in creating globally significant companies, impacting competitiveness and growth. European venture capital funding is ~50% lower (GDP-based) than the US. This economic disadvantage is evident in the IPO market, where the total tech market capitalization at IPO is 11.6x higher in the US. Between 2015-2023, Europe saw 531 tech IPOs, but US IPOs demonstrated better post-IPO performance. Many European firms opt for US exchanges, causing Europe an estimated economic loss of $439 billion. Fragmented capital markets, with 35 EU exchanges versus 3 in the US, contribute to this trend. Addressing fragmentation could enhance Europe's competitiveness.

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