Source: cyprus-mail
‘Europe needs ecosystems, not just capital’
Europe’s long-term competitiveness will depend less on the amount of money available to startups and more on the strength of the ecosystems supporting them, according to seasoned entrepreneur, policy advisor and angel investor Ana Barjasic.
Speaking to the Cyprus Mail on the sidelines of the 2026 European Innovation Council (EIC) Summit in Brussels, Barjasic said that too many discussions about innovation focus on funding while overlooking the deeper foundations required to create sustainable companies and retain talent in Europe.
The founder of Connectology and Global Advisor at the Global Entrepreneurship Network said one of the biggest mistakes made by early-stage founders is assuming that attracting investors should be their first objective.
Instead, she believes entrepreneurs should begin by validating whether a genuine market exists for what they are building.
“The most important thing is to validate whether there is a need for whatever solution or service they are building,” Barjasic said.
She explained that many founders ask potential customers whether they like an idea, only to receive encouraging responses that provide little information about actual demand.
“The right question is whether you are willing to pay for something, and how much,” she said.
According to Barjasic, customer traction opens doors to investors and other opportunities far more effectively than a pitch deck alone.
She added that founders often fail to think strategically about fundraising itself. Many entrepreneurs, she said, have absorbed the idea that starting a company should automatically be followed by searching for investors.
Yet not every business requires external capital.
Some companies can grow through revenues generated by customers, while more technically demanding ventures need intellectual property and additional assets capable of creating value beyond the original concept.
“There needs to be value in the execution of the idea, not just the idea,” Barjasic said.
The discussion also turned to the role of public funding and the so-called Valley of Death that many startups struggle to cross. Barjasic described public support as indispensable, not only during the earliest stages of a company’s life but also during the scale-up phase.
She pointed to the launch of the EIC scale-up fund during the summit as evidence that policymakers are increasingly recognising the needs of more mature companies.
The Scaleup Europe Fund is a multi-billion late-stage investment vehicle designed to support Europe’s most promising companies in strategic technology sectors such as artificial intelligence, robotics, and biotechnology.
By addressing a critical investment gap, the initiative aims to provide sufficient capital to help these technology companies expand and compete effectively on a global scale.
The fund operates within the European Innovation Council structure and is managed by a private fund manager to ensure a market-based approach to growth.
According to Barjasic, public funding exists to address market failures.
If sufficient private capital were already available, such mechanisms would not be necessary.
She explained that grants and equity are only part of the picture.
Equally important are mechanisms that encourage private investors to co-finance companies and assume risks they might otherwise avoid.
She cited instruments such as the EIC Accelerator as examples of attempts to lower risk and mobilise additional capital.
“Public mechanisms should not just throw money into a pot, but really try to create an ecosystem around the issue so that the interests of all stakeholders are aligned,” Barjasic said.
Asked whether ecosystems should come before money, her answer was unequivocal.
“An ecosystem is super important, so in my view it comes first,” she said.
Barjasic said successful companies rarely emerge in isolation. Behind most deep-tech ventures lies a network involving universities, researchers, investors and institutions.
Money, she argued, should be viewed as a tool rather than the ultimate measure of success.
The real questions, she said, concern whether businesses create jobs, encourage entrepreneurship and keep innovative companies anchored in Europe.
Otherwise, governments risk celebrating the simple fact that budgets have been spent rather than assessing whether meaningful results have been achieved.
Reflecting on her work as an angel investor, Barjasic said innovation remains an essential component in every investment opportunity she considers.
Although much of her recent attention has centred on deep tech, she said high levels of technological sophistication are not always required.
She explained that Connectology has developed its own internal methodology for evaluating risk, while an investment club associated with the firm carries out due diligence on prospective opportunities.
Beyond financial metrics, Barjasic said she pays close attention to the broader impact a company may have.
“I’m very concerned about what kind of impact the company will have,” she said.
Questions relating to sustainability, health and the benefits that innovation brings to society feature prominently in her thinking.
She also places considerable emphasis on compatibility between investors and founders.
“Cultural fit and mindset fit are very important,” Barjasic said.
Turning to Cyprus, she acknowledged that smaller and geographically peripheral countries face additional obstacles, particularly in sectors dependent on imports and exports.
For this reason, she said smaller ecosystems should focus on industries less constrained by such barriers.
At the same time, Barjasic praised Cyprus’ recent achievements.
“Cyprus was ranked as a strong innovator in 2024 now when it comes to the European Innovation Scoreboard, which is a huge success,” she said.
She described this as proof that ecosystem-building efforts on the island are already bearing fruit.
However, she said the process must continue through stronger international links and greater interaction with universities and leading innovation centres.
Deep-tech innovation, she observed, often originates in academia.
Countries do not necessarily need to produce every breakthrough themselves, but can create value by helping commercialise inventions developed elsewhere.
Barjasic also argued that Europe should resist the temptation to fragment itself.
She said Britain should not be considered outside Europe simply because of regulatory arrangements, particularly as discussions continue over participation in various programmes.
“Europe is a continent and we need to be unified,” Barjasic said.
Looking ahead, she said Cyprus is already moving in the right direction, but deeper connections with other ecosystems and more outreach in both directions will be essential if the country is to strengthen its place within Europe’s wider innovation landscape.