Welcome to the State of European Tech 2021

The European Tech Flywheel

As the European tech sector grows, the flywheel is spinning faster

As the tech industry grows, so does the talent pool

A strong talent pool leads to better ideas and better companies

Better ideas and companies attract more world class investors...

The best investors support the strongest outcomes...

These outcomes in turn catalyse more investment, talent, and ideas...

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Welcome to the State of European Tech 2021

The definitive take on European tech

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As the European tech sector grows, the flywheel is spinning faster

Record growth drives new milestones

Europe is firmly positioned as a global tech player in 2021, with a record $100B of capital invested, 98 new unicorns, and the strongest ever startup pipeline, now on par with the US. European tech is creating value at its fastest pace, adding $1 trillion in just 8 months. While geographical differences in maturity level remain, talent mobility and distributed success is powering newer hubs.

Europe, a global tech force

As the tech industry grows, so does the talent pool

Talent is betting on tech

The European tech talent pool is deeper and more experienced than ever, as talent is recycled across the continent. Yet there is still a way to go; talent acquisition tops the list of challenges for founders, alongside fundraising. Many founders – particularly those from underrepresented backgrounds – are finding it as hard as ever to access capital.

Founders & Leaders

A strong talent pool leads to better ideas and better companies

European entrepreneurs are shaping their own path

European tech has become a breeding ground for companies across all sectors. From frontier tech to crypto and enterprise SaaS, European founders can build successful companies from Europe. A new generation of entrepreneurs is putting social and climate impact at the core of their mission. The ecosystem is aware of the need to improve diversity and inclusion, but has much left to do to make that happen.

Better ideas, better companies

Better ideas and companies attract more world class investors...

Investing in Europe is more attractive and dynamic than ever

VC has become the leading funding mechanism for entrepreneurs, but to stay competitive, VCs have to keep innovating. As the opportunity set matures, global investors are doubling down: from seed rounds to public markets, there are now more international investors and buyers active in Europe. While investors across the board have more conviction in European tech, pension funds still lag behind on their allocation to tech.

World-class investors

The best investors support the strongest outcomes...

Outcomes defy expectations in private and public markets

Europe continues to produce more tech IPOs than the US, $1B+ IPOs are becoming the norm, and record-breaking exit activity reached an astonishing $275B in deal value. Still, Europe is only in the first innings of its tech journey, with all indicators now pointing towards many trillions in value to be added over the next decade, even in a conservative scenario.

Extraordinary outcomes

These outcomes in turn catalyse more investment, talent, and ideas...

From stumbling blocks to building blocks

European tech is on a strong trajectory, with venture capital delivering consistently benchmark-beating returns. However, funding, talent and policy are all critical components we must continue to fine tune. With more collaboration across private and public sectors, we can supercharge the next decade for tech. And with better accountability from founders and investors, we can deliver more on inclusivity and sustainability.

How can the flywheel spin faster?

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Watch the State of European Tech 2021 launch

Report co-authors Tom Wehmeier and Sarah Guemouri walk you through all the key findings fit to print from this year's report including the hype, the highlights and the hardships that made up a record-breaking year for the European technology ecosystem.

Supercell Co-Founder and CEO Ilkka Paananen speaks to Wolt co-founder Miki Kuusi, COO Riku Mäkelä and VP of New Markets, Marianne Vikkula, about how they turned a hyperlocal delivery service into a $8 billion European tech success.

Karl Lokko sits down with Atomico Partner Hiro Tamura in Brixton to share his vision of how tech investment can change lives by empowering black entrepreneurs.

TomTom co-founder & CMO, Just Eat Takeaway & Group Iliad board member and CODAM founder Corinne Vigreux sits down with Capital T Founding Partner (and repeat entrepreneur) Janneke Niessen to discuss perseverance, paying it forward and the progress of the European tech ecosystem this year.

Klarna co-founder and CEO Sebastian Siemiatkowski sits down with Atomico co-founder and CEO Niklas Zennström to discuss how the company evolved into a global category leader and why ‘Buy Now Pay Later’ is only part of the story.

Tony Blair, former UK Prime Minister and Executive Chairman of the Institute for Global Change, sat down with Linda Griffin, VP of Global Policy for European healthcare unicorn Kry / Livi. They discussed why tech policy remains such a challenge, which direction it should take in the future, and how entrepreneurs can have their voices heard.

Read on... we have 500+ insights to share with you. We hope you enjoy it.

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