Startups need customers before investors, according to seasoned entrepreneur Ana Barjasic, who emphasises the importance of robust ecosystems in Europe’s innovation landscape.
- Startups need customers before investors, according to seasoned entrepreneur Ana Barjasic, who emphasises the importance of robust ecosystems in Europe’s innovation landscape.
While attending the 2026 European Innovation Council (EIC) Summit in Brussels, Barjasic highlighted a common misconception among early-stage founders: that securing investor funding should be their primary goal. Instead, she advocates for validating market demand as the first step in building a sustainable business.
Startups: Market Validation is Key
“The most important thing is to validate whether there is a need for whatever solution or service they are building,” Barjasic stated. Many entrepreneurs, she observed, mistakenly gauge interest by asking potential customers if they like an idea, often receiving positive feedback that fails to indicate actual market demand.
Barjasic encourages founders to ask more critical questions, such as whether customers are willing to pay for their product and at what price. This level of customer traction not only informs product development but also attracts potential investors.
Redefining Funding Strategies
Barjasic explained that not every startup requires external capital to thrive. Some can grow organically through revenue generated from customers, while others may need to focus on developing intellectual property and other assets that create value beyond the initial concept. “There needs to be value in the execution of the idea, not just the idea,” she remarked.
Discussions at the summit also touched on the challenges startups face, particularly the transition through the so-called ‘Valley of Death’. Barjasic described public funding as essential not only in the early stages but also during the scale-up phase of a business. The launch of the EIC scale-up fund, which aims to support promising companies in strategic technology sectors like artificial intelligence and biotechnology, reflects a growing recognition of the needs of more mature businesses.
Public Funding and Risk Mitigation
This multi-billion euro fund is designed to bridge critical investment gaps, providing the necessary capital for technology companies to expand and compete globally. Barjasic noted that public funding exists to address market failures, indicating that if sufficient private capital were available, such mechanisms might not be necessary.
She stressed the importance of aligning the interests of all stakeholders involved, advocating for a holistic approach to funding that encourages private investors to co-finance ventures and take on risks that they might otherwise avoid. Barjasic cited initiatives like the EIC Accelerator as vital tools for lowering risks and mobilising additional capital.
The Role of Ecosystems in Innovation
When asked if ecosystems should precede financial investment, Barjasic was clear: “An ecosystem is super important, so in my view it comes first.” She believes that successful companies rarely emerge in isolation; they are typically supported by a network of universities, researchers, investors, and institutions.
For Barjasic, money should be viewed as a tool rather than the ultimate measure of success. The critical questions revolve around whether businesses create jobs, foster entrepreneurship, and keep innovative companies rooted in Europe. She cautioned that governments could fall into the trap of celebrating budget expenditures without assessing the meaningful impacts of those investments.
Investing with Purpose
Reflecting on her experience as an angel investor, Barjasic noted that innovation remains central to her investment strategy. While her recent focus has been on deep tech, she clarified that high technological sophistication is not always a prerequisite for investment. She mentioned that her firm, Connectology, employs a unique methodology for risk evaluation, while an investment club associated with the firm conducts due diligence on prospective opportunities.
Barjasic places significant emphasis on the broader societal impact of the companies she considers for investment. “I’m very concerned about what kind of impact the company will have,” she said, highlighting the importance of sustainability and health in her decision-making process. Furthermore, she considers the compatibility between investors and founders to be paramount, stating, “Cultural fit and mindset fit are very important.”
Challenges for Smaller Ecosystems
Turning her attention to Cyprus, Barjasic acknowledged the unique challenges faced by smaller and geographically peripheral countries, particularly in sectors reliant on imports and exports. She suggested that these ecosystems should concentrate on industries less impacted by such constraints.
Despite these challenges, she praised Cyprus for its achievements, noting its recent ranking as a strong innovator in the 2024 European Innovation Scoreboard. “This is a huge success,” she said, indicating that efforts to build a robust ecosystem on the island are already yielding results. She stressed the need for continued progress through strengthened international connections and increased collaboration with universities and leading innovation centres.
Unity in European Innovation
Barjasic also addressed the need for Europe to remain unified in its innovation efforts, cautioning against fragmentation. She believes that the UK should not be viewed as separate from Europe due to regulatory arrangements, particularly as discussions about participation in various programmes continue.
Looking ahead, Barjasic sees Cyprus making strides in the right direction but emphasises that deeper connections with other ecosystems and more outreach will be essential for the country to strengthen its position within Europe’s broader innovation landscape.
