At the EIT Critical Raw Materials Summit in Brussels on May 15, industry experts discussed the challenges facing Europe’s raw materials start-ups. The panel featured Antony Slotboom (EIT RawMaterials), Benedikt Sobotka (Alpha Future Funds), and Ella Cullen (Minespider), with David Eades moderating.
Key insights included:
– Europe has sufficient capital but lacks focus on the crucial development stage where start-ups are too small for banks but need more funding than typical VCs provide
– The notorious “Valley of Death” affects many promising innovations that struggle to transition from early-stage development to market-ready solutions
– Cultural differences with the US: European investors are more cautious, while US investors take bigger risks with larger funding tickets – “In the US, you might see a $27 million ticket from a family office – that’s not unusual”
– Corporate partnerships are vital but challenging to secure: “It’s easier to get a cheque from a VC than a purchase order from a major corporate”
– European start-ups must think globally from day one, seeking customers and investors internationally
– The raw materials market is inherently global, with downstream clients often in Europe due to regulations, but upstream clients across Australia, Latin America, and Africa
– Europe’s strength lies in collaboration networks between start-ups, corporates, and research institutions, but support must extend beyond initial phases
Cullen shared Minespider’s experience: “We were fortunate to get Horizon 2020 and EIT RawMaterials funding, but the real challenge is scaling – building a fully functional solution and getting it to market.”
Sobotka concluded: “We need to move beyond the mindset that every junior mining company must become a major. Sometimes, it’s about building a portfolio and accepting that not every venture will succeed – but the ones that do can pay for the rest.”
The panel called for a more risk-tolerant investment culture and greater ecosystem collaboration to help European raw materials start-ups compete globally.
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