Europe's not lacking talent — it's lacking confidence.

That's the verdict from Meta's chief AI scientist Yann LeCun, who says an “inferiority complex” among European media and investors is holding back the continent's tech industry.

“The main reason why the European tech industry is small is a mistaken assumption of technological inferiority on the part of the European media,” wrote LeCun in an X post. 

“Perhaps more importantly, there was a similar inferiority complex on the part of investors, which made them less willing to take risks when the mere possibility of an American competitor would rear its head. That has been changing over the last few years.”

This reluctance to make bold bets is illustrated in the funding gap across the Atlantic. Despite having more than twice the population, European tech firms struggle to attract the investments going to their American counterparts. In 2024, US startups raised $178bn, more than triple the $51bn figure for Europeancompanies, according to Crunchbase

LeCun's comments came in response to an X post by Arnaud Bertrand, the French founder of rental marketplace HouseTrip, who has had his own struggles building a startup in Europe.

Bertrand founded HouseTrip in 2009, a year before the launch of a similar startup: Airbnb. HouseTrip also planned to make booking an apartment as simple as booking a hotel, but couldn't compete with its American rival. Airbnb, which is now valued at over $80bn, grew into one of the world's greatest tech successes.  

Housetrip struggled to compete with the cash-flushed unicorn. Two years after Airbnb entered the European market in 2012, Bertrand stepped down as CEO. In 2016, TripAdvisor acquired the company for an undisclosed sum, before incorporating it into the travel site Holiday Lettings.

Bertrand took to social media today to push back against a recent article that scrutinised Europe's tech sector. Published Monday, the piece blamed the region's sluggish performance on overregulation, fragmented markets, limited access to capital, and a risk-averse business culture.

Bertrand agreed with some of the criticisms, but added that they “are all secondary.”

“Based on my experience, the key problem faced by European startups can be summarised in one word: patriotism,” he said.”

“There is virtually [no patriotism] in Europe, and more than anything that's what's killing EU startups, or preventing them from developing,” he continued. 

According to Bertrand, one of the reasons his startup failed to beat Airbnb was a lack of patriotism among investors and media in Europe — a determination to back their own startups.

LeCun, however, has a different view on the causes. “Not sure I would call this a lack of patriotism,” he said. “More like a lack of self-confidence.”

Europe's tech competitiveness will be a hot topic at TNW Conference, which takes place on June 19-20 in Amsterdam. Tickets for the event are now on sale — use the code TNWXMEDIA2025 at the checkout to get 30% off.