Atomico - State of the European Tech Report 2021, a ground-breaking year

  • December 7, 2021

Key takeaways:

  • Tech investment set to exceed $100B a year milestone
  • Europe is creating global market category leaders that are rivalling those of the US and in some cases overtaking the US for the first time with its pipeline of early-stage startups and tech IPO’s
  • There is further evidence that mixed and diverse teams perform better; we must continue to support diversity to make Europe increasingly competitive

In a year that can be best described as record breaking, European innovation has continued to establish itself as a global player for all things innovation. The Atomico State of European Tech Report delivers a comprehensive review of what is shaping our European Innovation Economy and driving its record levels of growth.

Published by Atomico in partnership with Orrick, Slush, Baillie Gifford, and Silicon Valley Bank, the State of European Tech 2021 report analyses input from over 5,000 founders, investors and visionaries enlightening key trends and issues shaping the European innovation ecosystem.  

Erin Platts, Head of EMEA and President of UK Branch said, “We believe we are at the start of a golden era for European innovation. 2021 has been without a doubt the finest year for the European innovation ecosystem with a record $100bn expected to be invested by the end of the year. Our ecosystem is flourishing, we now have the depth, breadth, and international demand that has made Europe a tech powerhouse.”

The report includes contributions from Erin Platts, Head of EMEA and President of UK Branch, Sonya Iovieno, Managing Director of Venture & Growth and Stephen Lowery, Managing Director of Business Development at Silicon Valley Bank.

Here’s a few observations of what Silicon Valley Bank (‘SVB’) is seeing within the ecosystem:

  1. Europe is creating global market category leaders that are rivalling those of the US, as valuations reach record highs amid a thriving scaleup ecosystem.

Europe has its strongest ever pipeline of early-stage startups with the region accounting for 41% of all capital invested globally in rounds of up to $5M, overtaking the US for the first time on this indicator.

    2. Outcomes are exceeding projections in both public and private markets

Europe continues to produce more tech IPOs than the US. There are currently 26 European tech companies with decacorn status compared to 12 in 2020. Blockbuster IPOs ($10B+) are becoming the norm globally.

    3. We must support diversity to help increase our probability of success and make Europe increasingly competitive.

Progress is being made through organisations such as, ColorinTech, Diversity VC and The Newton Program. Collectively we must bring more solutions to make Europe the most inclusive tech hub in the world.

    4. European fintech is soaring; ‘Planet Positive’ startups gain traction

In absolute terms, fintech had the most significant increase (+159%) in investments of +$14.9B. Planet Positive investments captured 11% of total funding overall in 2021.

    5. Europe solidifies as a global tech player

European tech is on track to cross the $100B milestone of capital invested in a single year, close to 3 times the level in 2020. The number of unicorns in Europe grew by 27% each year on average.

You can download and read the full report online – Atomico State of European Tech 2021.