European Tech Sector Sees Record $143B Investment, Fueling Growing Lobbying Efforts

Atomico's Annual State of European Tech Report Highlights Growing Lobbying Efforts The latest State of European Tech report from venture capital firm Atomico has revealed a significant uptick in investment in the European tech sector, with a total of $143 billion invested in 2022, a 22% increase from the previous year. This growth is a testament to the region's increasing attractiveness to startups and investors alike. According to the report, the European tech sector has seen a significant increase in investment over the past few years, with a total of $543 billion invested since 2013. This trend is expected to continue, with Atomico predicting that the sector will reach $1 trillion in investment by 2025. The report also highlights the growing importance of the European tech sector, with 1 in 5 unicorns (private companies valued at over $1 billion) now based in Europe. The report's author, Tom Wehmeier, notes that the sector's growth is not just about the numbers, but also about the need for policy changes to support the industry's continued growth. Wehmeier argues that European startups and investors are increasingly turning to lobbying to push for policy changes that will help the sector thrive. To this end, the report makes four policy recommendations: Fix the friction, Fund the future, Empower talent, and Champion risk. These recommendations aim to address issues such as regulatory hurdles, access to funding, talent acquisition, and risk-taking, which are critical to the sector's continued growth. Atomico's portfolio companies, which include high-profile European companies such as Aiven, DeepL, Klarna, Pipedrive, Stripe, and Supercell, are well-positioned to benefit from these policy changes. Founded in 2006 by Skype co-founder Niklas Zennström, Atomico has a proven track record of identifying and supporting successful startups. The report's focus on policy changes reflects a broader shift in the European tech sector, with companies of scale increasingly turning to lobbying to push for policy changes. This trend is similar to that seen in the US, where Big Tech companies have become major players in the lobbying game. Looking ahead, the European tech sector is poised for continued growth, driven by increasing investment and a growing ecosystem of startups and scale-ups. However, the sector will need to navigate a complex policy landscape to continue to thrive. The recommendations outlined in the Atomico report provide a roadmap for policymakers and industry leaders to support the sector's continued growth and success. In conclusion, the latest State of European Tech report from Atomico highlights the sector's growing importance and the need for policy changes to support its continued growth. With a total of $143 billion invested in 2022 and a predicted $1 trillion in investment by 2025, the European tech sector is poised for continued success. However, the sector will need to navigate a complex policy landscape to continue to thrive, and the recommendations outlined in the report provide a roadmap for policymakers and industry leaders to support the sector's continued growth and success.