Atomico and data partners LinkedIn, Meetup, Stack Overflow, Dealroom.co, and the London Stock Exchange, amongst others, have identified three major trends:
– Deep tech is growing. According to the report, the number of deep tech startups founded in Europe has grown 3.5x. Nearly $2.3bn has been invested in deep tech in Europe since 2015 compared to the $1.7bn that was invested over the four year period between 2011 and 2014. In 2016, deep tech M&A transactions amounted to $88B. In addition, more US and Asian tech companies as well as European corporates and investors are backing or acquiring this kind of companies.
– New tech hubs are emerging beyond London, Berlin, and Stockholm in Munich, Zurich, Lisbon, Madrid, and Copenhagen. Paris, which has just launched the StationF campus, is challenging London and Berlin in terms of the number of VC-financed deals and volume.
– Traditional industries are moving. Two thirds of Europe’s largest corporates by market cap have made a direct investment in a tech company while one third has acquired a tech company since the beginning of 2015.
Anyways, the report highlights that some critical challenges remain. These include:
– the late stage funding gap,
– the lack of closer links between the disparate hubs,
– the gender imbalance.
Have a look at the report here: