Atomico and Orrick recently published The State of European Tech 2018 Report, which paints a comprehensive data-driven story of European technology today.
Based on the numbers alone, 2018 is definitely a good year. Over the past 15 years, tech (software) has grown to hit 194% of its relative value in 2002. Investment in European tech also reached $23 billion, with European founders having created a total of 17 billion-dollar companies.
This Review has more new datasets, more information and more analysis than ever before. It is a testament to a vibrant and growing ecosystem of public and private sector organisations who themselves have recognised the power of the UK’s scaleup companies. Discover the 5 gaps that have been determined and the reccomendations that have been made.
This analysis has been created because of the fact that funding rounds are self-reported and labeled with no consistency. That is why a relabeling based on size, timing and company age happened to allow for consistent and reliable comparisons.
Scale-up Europe is on the move! In this report you will read more about how well 2017 was for European scale-ups. More than 1,200 scale-ups were born in Europe and $22B of new capital was invested into scale-ups. Of which, $2.8B was raised through ICOs (Initial Coin Offerings), where Europe seems to have a competitive advantage over the United States.
This report included an analysis of data findings and the views of the UK scaleup business leaders in 2017 revealing three fundamental themes: People, Place and Productivity. For instance, evidence continues to show scaling businesses generate more productive jobs than the average – approximately £235,000 turnover per employee.
Take an in-depth look at funding and exit trends for Europe, Israel and Turkey from Q1 2016 to Q2 2017 and read the overview of the main deals that have taken place in the region, and the companies and investors involved in such transactions. The total investment volume of this period is €21.3 billion and a 1037 deals in total.
Europe is home to approximately 4,200 fast growing, high-tech companies that we refer to as “scaleups”. This distinction serves to separate this group from startups, i.e. to draw a line between early stage initiatives and real companies that are producing revenue and employment. If the count is restricted to only countries who are current members of the European Union, the number of scaleups goes down to 3,950 and the capital raised to $56B.
While Europe might be a single market, it’s definitely not a single tech scene. That fact makes it difficult to feel the pulse of the European tech. In 2016, fintech is the most funded vertical both in capital raised and in total number of deals.
The report gives practical insights and suggestions of what is needed and drills further into the current financing landscape and what more can be done to enhance finance options in the UK for our scaling businesses. The needs on talent and skills are ever greater and we must continue to work with our schools, universities and local authorities to ensure students are attaining the right education for the jobs of tomorrow.