It’s been on the air for a while, but now it’s official: Europe is one of the two leading players in investing in technology. There has never been a bigger investment in European technology companies (100 billion) than there was in 2021. Six years ago, it was still $ 10 billion. European technology companies are also growing faster than ever. By 2021, 98 companies have reached this level Unicorn (Market value over 1 billion).
This is clear from the State of European Tech report for 2021. This report, as every year, is published Atom, A London-based European venture capital firm. The report processed the data for the first nine months and extended it until the end of the year. The report also includes the results of a survey of 5,000 industry respondents.
Major investment circuits
The massive growth of investment in 2021, due to large-scale investment, was used to more than $ 250 million. Such capital inflows have grown tenfold in the last 12 months, now representing 40 per cent of the total capital invested in Europe. But this year more than $ 100 million rounds were very casual. In the first nine months of this year, 152 companies received payments of $ 100 million or more. These large funding rounds are for companies that are in a scale-up phase, especially Fintech companies. Money comes from institutional investors, governments and venture capitalists.
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Investment in start-ups cannot be said to be lagging behind this year. In fact, Europe’s role in this type of funding has grown to the point where the European ecosystem for start-up entrepreneurs is on par with the United States. European start-ups account for 33 percent of total capital invested up to $ 5 million worldwide, up 35 percent for the United States. This is an important fact. Initial financing is a key indicator of future growth. China is of much less importance in this chapter. Asia alone accounts for only 17 percent of start-up funding.
However, investor interest in early European technology companies is clear. American investors seem to have discovered Europe. The Atomico report shows that 28 percent of investment in European technology companies comes from the United States.
The value of European technology companies has also grown strongly. In 2018, the value of technology companies in Europe crossed the $ 1 trillion mark (1000 billion) for the first time. It took Europe a few decades to reach that milestone. Then it went fast. Reached the second trillion by the end of 2020. The third trillion was obtained in September 2021.
Incidentally, the largest technology companies listed in Europe are ASML (with a market value of about 300 billion) and Adyen, both based in the Netherlands. It is true that the United States continues to dominate the world stage, accounting for 70 percent of the total market capitalization of technology companies.
Europe already surpasses US in IPOs of technology companies by 2021 More companies are listed in Europe than across the Atlantic.
Works well across Europe. At least one unicorn is within their borders in 28 different countries. However, it is mainly Western Europe that is responsible. As every year, the United Kingdom is in the absolute lead. The total amount invested in UK technology companies is more than double the amount of capital invested in Germany and France. The top five richest countries are Sweden and the Netherlands in addition.
These top five locations will not change from 2020 onwards. In southern Europe, Spain is making great strides. Italy is slipping further, overtaking Estonia as Europe’s most entrepreneurial country. There are more than 1,100 technology entrepreneurs per million people in that country. The five largest centers in terms of total investment capital are London, Berlin, Paris, Stockholm and Amsterdam respectively.
The healthy state of technological investment in Europe is also reflected in the record amount of investors who have left young companies. Various IPOs, mergers, managerial acquisitions and other exit strategies have amassed less than $ 275 billion.
Compare the results for 2021 with the ‘European technological level’Last year’s report
Read that too Start-up finance Dutch start-ups come mainly from abroad
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