About one in every 10 European startups that have raised VC investment are also backed by an EU grant of equity financing, according to a research project conducted by Dealroom and Dealflow.eu. While the full report is expected to be published later this year, the authors presented a few preliminary numbers in Warsaw last week.In financial terms, the 10% share translates into EU-backed startups having raised 70bn in VC funding since 2010, or some 11% of total funding in Europe (which in this case includes the EU, Switzerland, Norway, UK, and Israel). With some 400bn in total enterprise value (thats not including Arm), they now account for 13% of enterprise value for the entire continent.Predictably, most EU-backed startups work in what the report calls physical tech, i.e. producing tangible goods in the verticals such as spacetech, semiconductors, biotech, etc. In these industries, the share of EU-backed startups ranges from 24% to 28%.It also appears from the reports preliminary findings that EU backing improves the probability of success in further funding rounds. From Series A to Series D, EU-funded physical tech startups show a graduation rate thats 1-3 pp. higher than for the rest of the industry.Credit: DealroomSpeaking on the topic of fragmentation of the European tech ecosystem at the presentation event, Marcin Hejka, co-founder and general partner at OTB Ventures, noted that the issue is not necessarily about regulation or the internal market size.The problem is on the technology consumption level, he said. Europe as a continent is a late adopter, especially on the enterprise side. [] But when there is willingness [at a corporate] to buy from a startup, theyre looking for startups from their own countries and thats a problem.If youre a German startup, youre pretty okay selling to German enterprises. But if youre a startup from Romania or from Slovakia, or any other [smaller] country, its going to be an uphill effort.Theoretically, EU funding mechanisms should be solving this issue among others, however, most EU-backed startups are still based in Western Europe, with France, Germany, and the UK topping the rankings.The full report will be available in December you can pre-download it now. Story by Andrii Degeler Andrii is the Head of Media at TNW, with over a decade of experience in covering the European tech ecosystem. Talk to him about new and exci (show all) Andrii is the Head of Media at TNW, with over a decade of experience in covering the European tech ecosystem. Talk to him about new and exciting developments in tech, especially those involving vastly underreported industry niches and geographies. Get the TNW newsletterGet the most important tech news in your inbox each week.