TL;DR: Europe's tech ecosystem needs a balance between sovereignty and global expansion to thrive.
By 2026, Europe's focus on tech sovereignty risks stifling innovation if it sticks to narrow definitions of "European identity." Startups must adopt hybrid models, blending local roots with global ambition to scale, attract investors, and foster growth.
• Avoid rigid sovereignty: Restrictive policies limit global scalability and innovation.
• Adopt broader thinking: Hybrid business models can align European priorities with global growth.
• Entrepreneurial action: Work with regulators, highlight cross-border success stories, and support fellow founders.
Founders should lead reforms, combining European values with global adaptability. Start scaling smarter, prioritize agility and collaboration to secure Europe’s position in tech.
Europe faces a crossroads in 2026 with its technology ecosystem. Having spent years emphasizing sovereignty, the continent risks hampering progress by clinging too tightly to narrow definitions of what “European tech” must look like. From my perspective as a serial entrepreneur and founder deeply embedded in Europe’s startup ecosystem, this rigidity is not just a strategic misstep, it’s a collective setback for entrepreneurs, business owners, and Europe’s global ambitions.
Tech sovereignty has been hailed as a solution to Europe’s reliance on foreign infrastructure, but in many ways, it has become a double-edged sword. While sovereignty aims to protect and localize critical infrastructures, it can also inadvertently exclude startups that play by global rules. Let’s dive into why narrow approaches to sovereignty are dangerous, what broader thinking looks like, and what actions forward-thinking founders should prioritize to thrive.
What is the risk of narrow sovereignty?
The concept of narrow sovereignty assumes that startups must fit predefined notions of “European identity” in order to gain trust and support. This inflexible approach draws boundaries that exclude globally ambitious companies, think businesses that actively seek partnerships in the U.S. or Asia or those relocating parts of operations to scale.
- Threats to innovation: European regulations often favor local players but can unintentionally penalize those choosing hybrid models (European headquarters but U.S. expansion).
- Slower scaling: Barriers prevent companies from tapping into larger markets with more potential for growth.
- Investor hesitation: International investors may hesitate when European rules overly restrict engagement with non-EU funding sources.
Policies like GDPR have certainly fostered innovation around data sovereignty, but linking sovereignty strictly to geography rather than ambition limits how far startups can go. This framework overlooks the fact that globally integrated companies can still deeply benefit Europe’s ecosystem. For instance, companies like Datadog, founded by Europeans but operating globally, show how maintaining elements of core European identity can work alongside growth in foreign markets.
What does broader thinking look like?
It’s time for a mindset shift, both at a policy level and within the entrepreneurial community. Broader thinking acknowledges that a startup’s value to Europe and its culture doesn’t vanish when doors are opened to the global market. Instead, such openness adds strength to innovation pipelines by creating competitive advantages.
- Create hybrid business models: Startups should explore keeping their base in Europe while strategically entering high-growth markets without losing their identity.
- Leverage community integration: Tap into the deep networks and expertise unique to the European ecosystem to maintain cultural connections as you scale globally.
- Align on shared goals: Building companies that consider Europe’s priorities for tech sovereignty (like secure hosting or ethical data handling) while achieving global reach.
For example, platforms like Proton demonstrate how European companies can balance global success with EU-driven priorities like security and data privacy. It’s proof that embracing broader thinking doesn’t mean compromising values, it strengthens them.
How can founders lead in this change?
As entrepreneurs, we hold power to shape the narrative. This begins by questioning golden rules of sovereignty and reflecting on how our goals integrate, or clash, with systemic structures. Startups must advocate to policymakers and demonstrate the viability of globalizing while remaining steadfast to European roots.
- Engage with regulators to suggest changes in policy frameworks that allow flexibility in defining tech sovereignty.
- Showcase successful hybrid models. Highlight how operating across borders fuels Europe’s ecosystem with jobs, collaboration, and innovation.
- Support emerging founders and create access points for cross-continent collaboration, reducing the stereotype that success “must be small and local.”
Groups like Calculated Futures often push initiatives connecting global thought leadership with European policies, which is a direct way to disrupt stagnation. Founders should actively participate in such movements to solidify relational ties across geographical divides.
What are common mistakes to avoid?
- Being overly reliant on national funding: This locks businesses into narrow strategic visions.
- Ignoring scalability until it’s too late: Build your startup from day one with global ambitions and flexible frameworks.
- Pandering exclusively to “local-only” narratives: These are sometimes short-term fixes but often limit potential growth.
Remember: policies like the European General Data Protection Regulation (GDPR) can be allies in distinguishing European products from their international counterparts. Still, adaptability is equally key to staying competitive in markets that play by different rules.
What’s next for European entrepreneurs?
As someone deeply passionate about multi-path innovation, I believe European founders must blend sovereignty with agility to tackle barriers head-on. Create frameworks that celebrate global engagement while firmly grounding principles in local ambition. Foster coalition building with non-European partners. Develop an ecosystem where companies, regardless of location, can contribute authenticity, scale, and shared wealth.
- Engage with broader networks, such as global accelerators, to reimagine how startups pivot between markets.
- Challenge tropes of European dependence on venture capital by proving the viability of hybrid revenue options.
- Unite founders facing similar scalability hurdles under actionable, mentorship-focused collaborations.
A future where European companies only cater locally is not empowering, it’s limiting. Let’s reframe European sovereignty while scaling holistic growth, adaptable models, and partnerships that drive us forward.
FAQ on European Tech Sovereignty and Broader Thinking
What is tech sovereignty and why is it important for Europe?
Tech sovereignty is the concept of ensuring that European nations can independently control and manage their technology ecosystems, protecting critical data and infrastructure from foreign dependencies. It is widely considered a solution to reducing Europe's reliance on international players, such as U.S.-based service providers or infrastructure. Sovereignty allows Europe to craft regulations like GDPR, which foster innovation around ethics and data privacy. However, overly strict interpretations of sovereignty, focused solely on geography, risk excluding globally ambitious startups that contribute significantly to Europe's technological growth. This approach must evolve to support broader, integrated operations without compromising European values. Learn about GDPR’s impact.
How does narrow sovereignty hinder innovation in European tech startups?
Narrow sovereignty imposes rigid rules about what qualifies as "European tech," often emphasizing local-only operations. This approach penalizes startups pursuing international partnerships or scaling into markets like the U.S. or Asia. It creates unnecessary obstacles such as limited investor engagement, slower scaling processes, and reduced competitive advantages in global markets. Local-only narratives often restrict broader collaboration and innovation. Policies like the European General Data Protection Regulation (GDPR), while impactful, should adapt to include globally integrated models. Companies such as Datadog demonstrate how successful global operations can align with European values. Learn about Datadog’s growth.
How can broader thinking positively affect European startups?
Broader thinking enables startups to maintain their European identity while embracing global opportunities. This mindset fosters hybrid business models, community integration, and alignment with shared EU priorities like ethical data handling. By broadening horizons, startups tap into international markets, enhancing competitiveness and creating sustainable ecosystems. Platforms like Proton show how focusing on security and global success together strengthens European values. Such openness benefits founders, businesses, and the broader European ecosystem by promoting cross-border collaboration and growth. See Proton’s success story.
What actions should European founders take to thrive globally?
European founders can take several key actions to navigate barriers and achieve global success:
- Build hybrid models with European bases and international footprints.
- Actively engage with policymakers to influence more flexible sovereignty frameworks.
- Collaborate across continents with diverse networks, leveraging expertise unique to Europe.
Organizations like Calculated Futures encourage global partnerships to expand Europe's tech ecosystem, making progress visible and actionable. Founders should advocate for hybrid business models that showcase global success while preserving local integrity. Learn about Calculated Futures.
Why is investor flexibility critical for global scaling?
To scale internationally, startups often need investors who can facilitate connections and operations abroad. Rigid rules around European-only funding sources can deter international financiers, limiting growth potential. Flexible sovereignty policies empower startups to access non-EU investments while still benefiting Europe's ecosystem. Encouraging global investors fosters collaboration, job creation, and innovation pipelines. Startups and policymakers should push for balanced frameworks that incentivize international funding without compromising European roots.
What strategies can founders use to balance sovereignty and agility?
Founders can balance sovereignty and agility by crafting adaptable business models that integrate European priorities with global reach. Strategies include:
- Leveraging EU policies supporting secure hosting and ethical data handling, such as GDPR.
- Blending local European networks with international expansion initiatives.
- Partnering with accelerators like Y Combinator for global resource access.
These approaches highlight that aligning sovereignty with agility strengthens startups, allowing them to scale without sacrificing their cultural and ethical foundations. Explore Y Combinator’s programs.
What are common mistakes European startups should avoid to ensure growth?
Mistakes include over-reliance on national funding, neglecting scalability, and adopting “local-only” narratives that restrict long-term prospects. Startups should prioritize global ambitions from day one, avoid isolationist business models, and use frameworks that let them scale across borders. While policies like GDPR add value, flexibility remains key for competing in diverse international markets. Founders must build adaptable systems that maximize European advantages while embracing inclusivity.
How can European policies help unlock startups' global potential?
European policies need to adapt to modern challenges, offering incentives for startups to expand globally while retaining core European values. Examples include revising rigid regulations to favor hybrid models and collaborating with founders to create flexible sovereignty frameworks. The EU can support cross-border mentorship and funding, enabling startups to compete internationally. Programs promoting ethical practices and secure data handling can help differentiate European products in global markets.
Are there examples of European companies balancing global success with sovereignty?
Yes, Proton demonstrates that global success can be achieved without compromising on European principles like security and privacy. Similarly, Datadog shows how European-founded startups with international operations continue benefiting their local ecosystem. These companies serve as vital examples of hybrid models blending European identity with international growth, proving that broader thinking strengthens both global competitiveness and local value.
What’s next for European entrepreneurs in 2026?
European founders should prioritize blending sovereignty with agility, fostering partnerships that span continents while staying grounded in local principles. Strengthening relational ties across geographical divides through coalitions, mentorships, and accelerator platforms can unlock new growth avenues. Creating frameworks for celebrating global engagement alongside European priorities will ensure startups scale holistically. A successful future for Europe lies in integration, coalition-building, and innovation pipelines fueled by global contributions.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.