European software sector at critical ‘inflection point,’ warns McKinsey

Europe has a unique chance to lead in software — but only if it improves its ability to turn startups into profitable businesses. The report, Europe’s Moonshot Moment, found that the continent has over 280 software companies generating more than €100 million in annual recurring revenue (ARR). However, European software businesses that reach the €100 million ARR threshold take 15 years on average to get there. “There’s no denying that European tech has faced structural barriers, but we’re at a genuine inflection point,” Phill Robinson, CEO and co-founder at Boardwave, told TNW. Robinson said he believes the EU’s new strategy will strengthen Europe’s software ecosystem by making it easier to operate across borders.