The State of European Tech

Want to make sense of 2022, but don't have much time? Or simply want to start with the top-line view? We've painstakingly whittled down the report to the most fundamental and useful findings of the year, so that you can peruse the highlights reel in just 10 minutes.

Despite the gloomy headlines, we have emerged from the process of writing this report feeling optimistic about Europe's opportunities. Here, report co-author Sarah Guemouri explores the data and insights that underpin this feeling.

Underrepresented founders still face high barriers with year-on-year progress virtually inexistent from a bird's-eye view. But change is on the horizon at the early stages that stand to ripple through the full capital stack over time.

Tech is a tool for amplifying and accelerating progress, and can have an outsized positive impact. Commitment to purpose-driven companies has remained strong despite the macroeconomic headwinds.

European tech is at a turning point, with funding reaching more diverse countries than ever, and an increasingly decentralised talent pool. But there is still more to be done, including improving the representation of women founders.

It’s been a challenging year for Europe, and tech has not been immune: founders today find themselves in a new fundraising and operating reality. But there are reasons to stay hopeful, as the ecosystem uses this period of recalibration to grow its resilience.

This year saw a marked slowdown in exits, with the IPO window all but slamming shut. We explore how founders, VCs, and LPs are feeling about this, where the pressure points lie, and, crucially, where opportunities remain.

Atomico and Form Ventures have teamed up to survey different policy initiatives across Europe, aimed at supporting entrepreneurial ecosystems. Take a look at the subsequent slices of data here.

This year was marked by the Russo-Ukrainian war, and the bravery of the Ukrainian people in fighting for freedom and sovereignty. This section highlights tech's role in that effort, drawing on insight from our partners at TechUkraine. For more detail, read their recent report here.

This period of recalibration is an opportunity for the tech ecosystem to define the role it wants to play in the future economy, as Europe doubles down on climate. We explore the headline data on how tech is contributing to a more sustainable future.

We asked LPs to tell us about their priorities, concerns, wishes, and activity. Learn more about the trends they’ve observed this year and the changes they’re driving.

For anyone interested in the intersection of government policy, innovation, and technology, this is a fast-track through the report, highlighting sections of particular relevance to you.

Across every metric, Europe’s capital markets are maturing. There are more players of every type, at every funding stage, and from international as well as domestic funds. Debt providers' role in the tech ecosystem is growing in importance and has reached yet another milestone in 2022.

Despite its small size, Estonia is a heavyweight in the European tech ecosystem. The country is going from strength to strength every year.

The story of DACH in 2022 is a multifaceted one: while being hit hard by declining investment, the region still remains a tech powerhouse. It has one of the youngest founder pools in Europe, yet punches above its weight in its number of unicorns.

In a unique trajectory, French tech continued to go from strength to strength in 2022. With a strong foundation and rapid inflow of talent, the ecosystem in now vying for the number one spot in Europe.

This year, founders’ priorities and concerns have shifted in line with the macro environment and the new set of challenges they now face, focusing on managing cash flow and keeping their teams motivated. Amid all this, founders across the continent remain optimistic about the outlook for European tech.