Old world. New rules

European start-ups have become far more visible in recent years. Financing is up 86% over the first half of 2015 compared to the same period in 2014, but this new visibility also has to do with spectacular exits and the fact that the new heroes of the digital economy are also the new icons of the business world. Europe, however, can’t—and shouldn’t—try to become the new Silicon Valley. Drawing on its own unique strengths, the European start-up scene can crack the code for ongoing success by breaking away from US models.

• This is reason enough for Roland Berger to put this lively ecosystem under the microscope, analyze where start-ups currently are, and predict where they are going. The results are astounding: in terms of appeal to entrepreneurs, finance, talent, and the business environment, start-ups are surprisingly mature. They are also growing incredibly fast. Whereas Tel Aviv, London, Amsterdam, and Bangalore are showing growth two, three, four, and five times faster than their peers, Berlin has demonstrated an astonishing growth factor of 20, making it a stand-out hub in a period of already considerable hyper-growth. All of this puts Europe in a good position for sustainable digital future—but now it must draw on its own competencies, find the right niches, and develop a shared vision and its own set of rules.