The much-anticipated State of European Tech report from Atomico is here, and this year is particularly special - it celebrates 10 years, reflecting on a "Decade of Growth and Transformation". I am thrilled to see Atomico include our perspective again in this milestone edition.
Some of the key takeaways that stuck with me:
⚡European tech venture capital investment is projected to reach $45B in 2024 (down from $47B), signaling a stabilization after three years of decline
⚡Over the past decade (2015-2024), European startups raised $426B - ten times the $43B raised in the previous decade (2005-2014), marking a transformative leap in Europe’s tech ecosystem
⚡Europe leads globally with over 35,000 early-stage tech startups, surpassing the U.S. However, Europe faces a critical growth-stage funding gap, with U.S. startups twice as likely to secure $15M+ rounds. Limited access to capital fuels talent, knowledge, and economic leakage. Reducing dependence on foreign funding, particularly from the U.S., is vital to level the playing field and strengthen Europe’s ecosystem
⚡Unlocking domestic capital, such as pension funds, could transform European tech funding. Despite managing trillions, these funds currently allocate just 0.01% to European startups. Increasing this share could inject billions into scale-ups, retain top talent, and reduce reliance on foreign funding
⚡Europe’s tech sector has seen explosive growth in job creation, adding nearly 20 million roles since 2015, with a 24% CAGR, matching U.S. rates. Today, 3.5 million people work in European-funded tech companies - seven times more than in 2015
⚡European deeptech startups attracted 33% of total funding in 2024, maintaining momentum from 2023, but they trail the U.S. significantly in AI funding - $11B in Europe versus $47B in the U.S. this year. Over the past decade, Europe raised $94B in deeptech compared to $300B in the U.S., highlighting a persistent gap. Europe's leadership in sustainability funding shines, with 21% of investments directed to climate tech - nearly double the 11% in the U.S.
A great piece of thought leadership that highlights both the gaps and the optimistic outlook for the European ecosystem. Thanks Tom Wehmeier Sarah Guemouri Abigail Daniels Andrew Duncan Sasha Vidiborskiy
