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European tech companies attract more funding than ever, yet the continent still has some way to catch up to the US. The European funding gap is a critical challenge, and the potential rewards in closing it are immense, from enabling more founders to build $B companies to retaining top talent and capturing more value within Europe.
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Over the past decade, the funding gap across $15M+ rounds is equivalent to $75B.
$75B
Putting it differently, for each company raising funding from a European lead investor, another is turning to the US for their capital need. This represents 1,000+ companies that turned to the US to secure a lead investor since 2015.
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Since 2015, the lower conversion rates to growth stage rounds meant that $300B worth of potential funding was never raised in Europe. In addition, in the Investors chapter we explore that European investors are having to rely on US investors to bridge a further $75B. This brings the total European growth stage funding gap to $375B.
$375B
How are Europe’s companies tracking when it comes to investment? This chapter explores the flow of capital into the continent’s startups, from how companies are performing at different stages and in different regions, to which founders are most likely to achieve $1B+ outcomes.
The pace of AI-driven innovation is only accelerating, and in 2024 Europe has continued to bolster its position as a global leader in this theme, although there is still room to grow. This fast-track insight tells the story of how AI came to be the theme on everyone’s mind in Europe and beyond over the past decade.
Hard data on the European tech ecosystem forms the backbone of The State of European Tech, but just as important are the annual survey results we obtain from our readers — the people working in the tech community and driving Europe forward. This fast-track insight highlights the insights that can only be gathered by speaking to those who live and breathe the ecosystem.
