Czech Founders’ Post

Although the markets seem to be skeptical about Europe in general, and about the European tech in particular, it's always good to have a contrarian view. Atomico, a premier VC firm started by the founders of Skype, just came up with a massive 266 page long report about the state of European tech. TLTR: (i) Significant Growth in Early-Stage Companies: The number of early-stage tech companies in Europe has surged from approximately 7,800 in 2015 to over 35,000 in 2024, reflecting a dramatic transformation in the ecosystem. (ii) Investment Surge: European tech startups have raised $426 billion in total capital since 2015, marking a tenfold increase compared to the previous decade when only $43 billion was raised. (iii) Funding Landscape: In 2024, the projected investment level in European tech is around $45 billion, which is three times higher than the $15 billion recorded in 2015, although it shows a decline from the peak of $101 billion in 2021. (iv) Valuation Disparity: European startups face a valuation gap compared to their US counterparts, with median pre-money valuations for Seed and Series A rounds being 52% and 38% lower, respectively, than in the US. The last point explains why European founders flock to Silicon Valley: less dilution, more upside, faster deals. More in the attached and on https://lnkd.in/dTj5-9Y9

Statistically relevant data that tells a story, not a story that's using data to make it fit. Always a pleasure of reading the SOET by Atomico and Slush. In other words: the #SOET24 is out. 🚀 Talent Boom - Europe’s tech workforce has grown to 3.5 million, with a 24% annual growth rate. We’re on track to match the U.S. in tech talent within five years! - The entrepreneurial mindset has flourished, with 7x more people now working in venture-backed companies compared to 2015. 💰 Funding Milestones - Total funding in Europe grew 10x in the last decade, from $43B (2005–2014) to $426B (2015–2024). - Despite the peaks of 2021, investment levels are stabilizing, with $45B projected in 2024. 🦄 Founder Ambition - Europe now boasts 35,000+ early-stage companies and 300+ unicorns. Founders aren’t just dreaming of billion-dollar exits—they’re aiming for 100x growth. - European entrepreneurs are solving societal challenges, with 21% of funding going to sustainability-focused startups, compared to 11% in the U.S. 🌟 Challenges to Tackle 1. Regulatory Complexity: 47% of survey respondents cited excessive bureaucracy as a barrier to scaling. 2. Fragmented Markets: Only 18% of early-stage investments are pan-European, limiting global competitiveness. 3. Funding Shortfalls: Without addressing the lack of growth-stage capital, Europe risks losing its brightest talent to other regions. Adding some other random thoughts: 1. Regulatory reform so European countries can unlock the potential of pension funds so they can start adding $9T AUM into venture capital 2. Work on deepening European capital markets so higher liquidities can support more exits in Europe 3. Simplify regulations to reduce the $375B funding gap for growth-stage companies across Europe Read more: https://lnkd.in/eFCMENgU #EuropeanTech #Innovation #Startups #Talent #Funding #Entrepreneurship

According to Atomico’s “State of European Tech 2024” report, Europe is catching up to the U.S. in start-up growth and innovation. Here are some snapshots of the current landscape.    Hits: 🚀 Europe now hosts more early-stage tech start-ups than any other region globally with 35,000. This number quadrupled since 2015. Also, growth-stage companies have seen an eight-fold increase to over 3,400 and there are more billion-dollar companies in Europe than ever before. 📈 Europe's average annual growth rate in start-up financing was 13%, outpacing the USA's 8% and China's 2%. 🌍 London has climbed to second place globally as a start-up hub, with Berlin and Paris also breaking into the top 10, highlighting Europe's rising influence in the tech world.    Misses: 💲 Half of the funding in European start-ups comes from the U.S. This means that the dependence of the European ecosystem on foreign investors is significantly higher than in the U.S. or China where around 80% of start-up funding comes from local investors. 🔎 The European IPO market continues to see a shortage of new entrants. So far this year, only the French tech company Planisware has successfully launched an IPO on a European exchange. Examples abound of European companies listing on U.S. exchanges.    Find out more here: https://lnkd.in/dQK__DQq

🙌🏻 Here is a great opportunity for Romanian startups to learn more about ecosystem growth: https://lnkd.in/dQK__DQq The State of European Tech is an annual report produced by Atomico, a venture capital firm, in partnership with other organizations like Orrick, HSBC Innovation Banking, AWS and Slush. The report provides a comprehensive analysis of the European tech ecosystem, including insights on investment trends, innovation hotspots, funding gaps, and the impact of technologies like AI. It also highlights regional dynamics, the performance of specific sectors, and broader trends in the tech landscape. We encourage you to read their report, and see how you can apply the data on your startup!  #ROTSA #Startups #Ecosystem #Study

The UK is still the leader in European technology according to Atomico’s tenth annual State of European Tech report today. The UK tech ecosystem leads the pack with over 2x the next best country in capital invested, number of billion dollar companies, and tech headcount. Deeptech investment is also on the rise in Europe, making up 33% of the total investment  in 2023 and 2024. Yet the US is still the global trailblazer, with more than 3x deeptech capital invested compared to Europe. It’s clear we’re at a critical tipping point. While the US and EU ramp up their investments, the UK cannot be seen to slow down. We’ve generated tremendous R&D value – it’s time to act quickly and continue deeptech investment to win the commercialisation race for these fundamental technologies. A few other noteworthy findings from this year’s report: ✅The market is recalibrating: while capital invested in 2024 is likely to be less than the previous year, it’s still 20% higher than the level of investment seen in 2020. ✅Late-stage companies have increased: There are now over 3,400 growth-stage companies in Europe, and we’re seeing more unicorns than ever before. ✅Almost half of all $1B exits over the past decade took place in the UK alone. To read the full report from Atomico, follow this link: https://lnkd.in/ezv7gM8K

🚀 The latest report to the State of European Tech 2024 is here. 🌟 This document is something that you should not miss. It covers the definitive take on Europe’s tech ecosystem through the last decade. It is going to be very helpful to you, especially, in case you wish to understand where the ecosystem stands today — and what’s needed to fully unlock the opportunities ahead. 📈 Here’s What’s Buzzing in the Report: - Talent Explosion: The tech workforce in Europe has skyrocketed to 3.5 million, positioning it to rival the U.S. within the next five years. - Capital Surge: A staggering $426 billion in venture capital has fuelled the European tech scene since 2015, with 2024 poised to hit a record $45 billion. With growing support from European pension funds, even more capital may come online. - Sector Strength: From AI to fintech, and climate tech, Europe is not just growing; it’s diversifying. Sustainability drives over 20% of funding, showcasing Europe’s commitment to green tech. - Scaling Potential: With over 35,000 startups and a remarkable unicorn count, Europe displays massive scaling potential, especially if the growth-stage funding gap is bridged. 🔗 Eager for more insights? Follow the link below and tap into the full report. #StateOfEuropeanTech #EuropeanTech #TechGrowth #Innovation #TechTalent #SustainableTech #kbsmartsolutions #poradvpohybu #startupynasbavi #startupekosystem

It was a pleasure to participate in the survey that Atomico has conducted for State of European Tech report 2024, based on our experience at the Barcelona ConTech Hub . It is undoubtedly one of the most complete and up-to-date European reports that exist. The results are good at a European level because we are growing strongly and we are the preferred area in the world for the creation of new startups. But as soon as startups grow, Europe does not have the financial strength to launch scaleups given the poor panorama of Venture Capital in the growth phase. In this phase, large American funds come into play, and it is in the US where they grow and develop on a large scale. The report does not include data from China, which I suspect will also leave us behind in this aspect. From our data and insights, the construction tech sector is expected to be one of the fastest growing in the coming years, data that corresponds to the increase in ConTech startups. I hope that in the next report Europe has begun to correct its faults and thus be able to retain the talent that is so hard to bring to light. Here is the link with the report's conclusions:

"The brightest minds are choosing not to pursue careers in large corporations, but to become entrepreneurs." Public perception of entrepreneurship in Europe is evolving, as highlighted in Atomico’s 2024 State of European Tech report. Entrepreneurs are not just adapting—they are leading. They’re driving sustainability, embracing emerging technologies, and building businesses that contributed €21.7 billion to GDP in 2022 while growing exports by 15.9%. But these innovators face significant challenges: rising energy costs, complex regulations, and economic uncertainty. Despite it all, entrepreneurship remains "one of the fastest ways to change the world at scale." 👉 What’s needed next? Policymakers must act to create an environment where entrepreneurship thrives: ➡ Simplify regulations to reduce burdens on SMEs. ➡ Foster innovation and sustainability through supportive policies. ➡ Build frameworks for global scalability and cross-border integration. #Entrepreneurship #Innovation #SMEs #StateOfEuropeanTech https://lnkd.in/enhVX2nd

Having worked on European tech policy for a while now, I've seen how challenging it is to articulate the complex relationship between regulation and innovation. However, we can't afford to ignore repeated signals, the latest being Atomico's State of European Tech report launched at Slush. One finding remains consistent: European founders cite regulatory and bureaucratic constraints as the top barrier preventing European tech from reaching its full potential. This aligns with Draghi's recent report on EU competitiveness. The message is clear: while no one claims regulation alone explains Europe's tech gap, we must take seriously when those building and scaling companies repeatedly flag the cumulative burden of pioneering regulations. It's not about any single provision or regulation, but the combined impact of multiple first-of-their-kind policies. The lack of established practices, fragmented enforcement, and complexity fundamentally changes the risk profile of starting a tech business in Europe. This burden falls disproportionately on smaller companies and startups. Unlike established players with dedicated compliance teams, startups must navigate complex regulatory requirements while building their product with limited resources. Moreover, uncertainty around implementation of new regulations often delays crucial investment decisions at critical growth stages. Yes, we absolutely need a real Digital Single Market and functioning Capital Markets Union. But we also need to incorporate growth and innovation as fundamental lenses through which all existing and new regulations are analyzed. Our economic future depends on getting this right.

It's that time of year again that I have major FOMO about missing Slush, in my eyes still the best startup and tech conference I've ever attended. Should I make a wish for me to attend next year? Let me blow out some candles 🎂 One of the highlights was always coming back with the Atomico report on the State of European Tech, of which I always managed to get a paper copy. What I always appreciated was how it combined really good data with insights through a survey of European founders. This year is the 10th edition and although I've had to go through it on a screen (I doubt paper copies still exist), here are some of my takeaways: 🎂 Cake again first of all, as there is reason to celebrate: - The number of people working in tech has grown sevenfold in those 10 years, creating 2.5 million (!) jobs - Capital Investment in the past 10 years is ten times the size as the 10 years before that - Founders report much more support and a better perception of entrepreneurs in society - Over 300 unicorns and $1 trillion of exit value generated ⛰ There is more climbing to do to really fulfil the potential of European tech, with the number one challenge still being the funding gap. Once again, there isn't any progress in the gender funding gap noticeable, the U.S. still invests a lot more in startups and only 0.007% of EU pension funds invest in EU VCs. The gap is most noticeable in growing companies from late stage funding into unicorns, where Europe has gone backwards in the past 10 years. From 16% conversion in 2015 (450 late stage to 72 unicorns) to only 10% in 2024 (3400 late stage to 350 unicorns). It's clear that the tech sector is growing in Europe: more startups, more scale ups, more talent, more research ... but capital funding is just not accelerating at the same pace. The biggest gap in funding is particularly painful as it's in deeptech: those technologies of the future. Another barrier to growth: regulation and bureaucracy with in particular the GDPR regime and the E.U. AI Act seen as blockers to growth. It's crucial that the E.U. gets it act together and starts seeing regulation as a way to foster innovation, not work against it. There is much, much more to read through. The full report is available on the website, I fully recommend it to anyone: https://lnkd.in/d_n6Zbgr