Investments raised by technology companies in Europe are expected to reach $51 billion this year48% less than the value reached in 2021 ($106 billion) and also less than last year ($83 billion), according to Atomico forecasts.
The consultant predicted some data from the annual analysis of the European tech ecosystem and it shows 2023, for companies in the sector, is a far cry from the madness of previous yearsregarding the ability to raise financing, and thus launch and scale up projects.
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Atomico accounts, reflected in The state of European technology – first lookshow it The volume of IPOs and mergers or acquisitions in the first half of the year did not reach half the value reached last year..
by countries, The UK has so far been the most affected by the decline in investment in this sectorwith a decrease in investment of 57% between the first half of 2022 and the same period of 2023.
However, the UK remains the most attractive country for this type of investmentAbout $ 7.4 billion, much more than France, the second most dynamic geography in this area ($ 4.6 billion).
Early-stage startups raised $8.2 billion in the first half of 2023Compared to the 10.3 billion collected in the same period in 2021.
It has also been verified Generative AI companies account for 35% of investment in Europe in AI startupswhen in the first half of last year they only accounted for 5%.
However, The field of financial services was the field that succeeded in raising the largest volume of financingabout a fifth of the total, even on the decline, as in the first half of 2022 it managed to get 29% of the financing made available by investors.
In the first six months of the year, Europe has seen only two unicorns born. The report also highlights whether in the field of artificial intelligence: DeepL and Quantexa.
However, Atomico’s data shows that The downward trend is not limited to Europe. The same applies to the United States and China, where investment in technology companies has decreased, so far, by about half, compared to 2021. The largest decline in the volume of financing operations was observed in the advanced stages of expansion of companies.
In 2022, the European tech ecosystem will be worth $2.97 billion, just under $3 billion in 2021, which is a record year. The number of new startups created in 2022 in Europe decreased by 19% and in the United States by 15%, Atomico also found out, noting that in the past five years, the difference in the number of financings was less than $5 million in the two regions, it decreased by approximately half.
The data now compiled by Atomico isn’t too different from that which stands out in an analysis already provided by CBInsights, where it’s also confirmed that the number of IPOs in the startup ecosystem has nearly halved this year, following a downward trend in other type of financings and the amounts involved. .
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