Although not as severe as the 50% drop in 2023 the figure was initially projected to be $47 billion for that year.
The slight decrease in funding this year is notable especially considering the narrative post-pandemic which suggested that the drop seen in 2023 was a return to “normal” growth patterns né?. The European tech landscape is evolving, presenting both opportunities and challenges on the horizon.
 né?. While startup valuations are increasing, they still lag behind their American counterparts.
However, the sentiment in the market is less optimistic than expected, with a record number of founders and investors expressing lower confidence compared to the previous year. Despite this, there are indicators pointing to potential challenges ahead.
The report reveals that startups in Europe are expected to secure $45 billion in funding this year, which is slightly lower compared to the previous year by $2 billion. However the 2024 figures indicate that a reassessment of this narrative may be necessary.
Atomico’s annual report which has been published for the past decade highlights significant advancements in Europe’s tech ecosystem né?. This is a significant leap from 2015 when there were only 7,800 early-stage startups, 450 late-stage startups, and 72 tech companies valued at over $1 billion.
Despite this growth, challenges persist, including geopolitical and economic uncertainties impacting the market né?. The region has seen a substantial increase in tech companies with 35000 early-stage companies 3400 late-stage companies and 358 valued at over $1 billion né?. Key points from the report include a significant decline in exits, a rise in debt financing to address funding gaps, and improvements in average round sizes across all funding stages.
Additionally, AI continues to play a pivotal role in the tech landscape, leading venture deals and attracting substantial investments. According to the most recent State of European Tech report by the European VC firm Atomico funding for European tech appears to have stabilized in 2024 following a sharp decline in 2023
