The Metaverse, a virtual universe where people can interact with each other in a 3D environment, is quickly gaining traction as an emerging market, attracting businesses, investors and talent from around the world.
However, despite the hype around the concept, Europe still faces significant challenges if it wants to establish a strong presence in the Metaverse. This article will examine the current state of the Metaverse in Europe and explore the obstacles it needs to overcome to reach its potential.
European Metaverse Market. Niche Operators and Start-ups
While the US and Asia dominate the Metaverse market, Europe has yet to establish a large presence in the industry. According to Rolf Illenberger, co-founder of VRdirect, a Munich-based virtual reality platform, none of the major European tech companies are currently important to Metaverse’s future.
Instead, the technology has been limited to niche carriers and startups like Finland’s Varjo, which makes high-end headsets, and Estonia’s Ready Player Me, an avatar gaming platform.
Jake Stott, chief executive of Web3 and metaverse advertising agency Hype, is optimistic that the European fintech industry could see payments providers in this space. However, he also admits that they are facing big challenges.
Historically, European startups have lagged behind the US and Asia in nurturing unicorns. Europe has also lagged behind the US in funding. Governments can provide support in these areas by removing barriers to growth and promoting venture capital to help Europe’s fledgling Metaverse ecosystem.
A talent and funding challenge
FOV Ventures, the first venture capital firm in Europe to invest exclusively in early-stage Metaverse companies, has announced €25 million in funding for early-stage or seed-stage startups.
Talent retention is one of the biggest challenges facing Europe’s Metaverse industry. Although Finland offers free and high-quality education, it can’t compete with Silicon Valley in terms of salaries.
FOV Ventures aims to provide early funding and market expertise to keep talent in Europe and has created a “premier network” of Metaverse specialists to provide funding and advice to partner with major platforms. The goal is for European investors to join forces to challenge American resources and keep talent in Europe.
The role of regulation
Members of the European Commission and Parliament have called for Metaverse to be regulated to address user privacy, data protection and competition concerns. Margret Vestager, the European Commission’s executive vice-president responsible for digital issues in the EU, looks at the new antitrust regulations.
However, the vague concept of the Metaverse has brought both problems and opportunities. Some critics argue that Metaverse providers are simply “old wine in new bottles.”
The Metaverse is a collection of technologies that have been around for years, such as virtual worlds, online gaming, social media, and augmented reality.
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