The State of European Tech Report has highlighted the necessity for the area to ‘outline its future by itself phrases’, going ahead.
Atomico has in the present day (19 November) launched The State of European Tech Report, which is an exploration of the continent’s booming know-how sector and the elements dictating its future.
Noting the area now has “extra founders beginning firms in Europe than the US”, optimism throughout the European know-how house was proven to have reached new heights over the course of the final decade, as 50pc of respondents to Atomico’s survey expressed emotions of elevated optimism and hope trying ahead.
The report stated know-how in Europe “isn’t a ‘catch-up’ story anymore. In a world beset by volatility and financial fragmentation, Europe provides one thing distinctive, stability, objective and belief.”
From a valuation of $1trn 10 years in the past, Europe’s know-how ecosystem is now valued at roughly $4trn, making up round 15pc of the continent’s GDP, a determine that’s up from simply 4pc in 2016. VC funding was additionally proven to be up 7pc in 2024, to be valued at $44bn.
Whereas the US has additionally had a powerful 2025, the report means that different areas, for instance Europe and Asia and the broader world, have proven extra consistency. It stated, “All noticed broadly steady ranges of capital deployed, with year-on-year adjustments remaining in single digits in all three areas, a sign of markets which have moved steadily fairly than surged, in distinction to the US.”
The report finds that European pension funds, when in comparison with different areas globally, are considerably “underweight” and underneath invested in, nonetheless, there’s a marked enchancment as European pension fund allocations rose by 55pc from 2023 to 2024, from $650m to $1bn.
Total, the report states that the situations for beginning an organization in Europe are bettering, with 42pc of respondents agreeing that changing into a tech founder in Europe proper now’s a extra enticing choice in the present day than it was a 12 months in the past. In comparison with roughly 1 / 4 in 2023 and 2024, a lot of whom truly argued that the ecosystem had worsened.
Commenting on the report, Eric de Montgolfier, the CEO of Make investments Europe, stated, “Founders and traders are Europe with contemporary eyes because the continent stands out for its stability and predictability, in addition to its objectives for tech sovereignty and development.
“VC in Europe has undergone a step change during the last decade and nonetheless has way more potential to unlock. Make investments Europe absolutely helps and echoes Atomico’s ambitions to strengthen Europe’s VC ecosystem and is actively working with policymakers to create the situations for start-ups to flourish.”
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