For the fourth year in a year, global venture Atomico produced a “State of European Technology Report” and again this year, there is a lot for the company and for Europe in general. According to the report, total investment in European startups reached $ 23 billion this year. That’s a quarter of the roughly $ 100 billion that is expected to be connected to US startups by the end of the year, but it is far more than the $ 5 billion that was deposited into European startups. in 2013, just five years ago.
That’s the good news, or some of it, anyway.
Working with data partners like Dealroom, Prequin and a dozen other companies, Atomico’s The new report presents a steady pace of developments to cheer on. Among them: in 2018, 17 more European companies were valued at a trillion dollars or more by their investors. Three of the top ten largest corporate-backed public listings came from Europe, including that of streaming media company Spotify, whose shares began trading on the New York Stock Exchange in April. And startups in 10 European countries have raised more than $ 1 billion since 2012, underscoring that while the UK remains the continent’s biggest tech hub, many other countries are on the rise, including Germany, France, Sweden and Spain.
As for Europe’s challenges, Brexit uncertainty is clearly on the minds of the 5,000 founders, investors, and other ecosystem professionals who were surveyed for the report. Access to talent is by far the top consideration when it comes to where to set up a business, and while Europe is home to some of the best business and technical schools in the world, it is also heavily reliant on friendly immigration policies. . Meanwhile, Brexit threatens to end free movement from Europe. In fact, many of those surveyed said the ongoing uncertainty caused by the Brexit voting and exit process is affecting hiring, fundraising and office location decisions.
UK-based respondents said that already, they felt it was more difficult to raise capital in 2018 compared to 12 months ago.
Another challenge for European companies to scale is the different regulations in different countries around taxes and data privacy, among other things.
However, an even bigger problem for Europe, as it is here in the US, is that the paid service that is paid to diversity does not result in the numbers you might expect. Note that in 2013, only 2 percent of women-founded tech companies in Europe closed funding rounds. In 2018, that percentage was. . . again just a measly 2 percent.
Other alarming numbers: Atomico found only one female CTO out of 175 European tech companies backed by companies that have raised a Series A or Series B in the last year. The founding teams of all men received 93% of the invested capital, and the financing teams of all men were responsible for financing the vast majority of the deals.
Perhaps worst of all, 46 percent of the women Atomico surveyed said they have experienced discrimination in the tech sector.
The research was published today at the Slush technology conference in Helsinki, Finland. It’s definitely worth studying closely too, though at 142 pages, you might want to have a coffee first.
If you’re looking for more anecdotal information, you can also check out our squats last week with LocalGlobe investors Saul Klein and four members of the Accel team in London, all of whom spoke about the state of the European tech scene. at our TechCrunch Berlin event.