In an illuminating report released by Atomico, it has been revealed that European startups are poised to secure a substantial $51 billion in funding throughout this year, representing a 39% decline from the previous year of 2022. Despite this decrease in funding levels, the report highlights compelling indicators of resilience within the European venture landscape for the current year.
Leveraging data derived from Dealroom and Crunchbase, Atomico prognosticates that if the prevailing circumstances persist, the total capital invested in European startups during this year will witness a notable 52% dip compared to 2021. While this is undoubtedly a decline, it is not significantly worse than what we are witnessing in other major regions.
According to Atomico’s findings, European tech investment volumes are currently tracking at approximately half of the previous year’s figures, set to reach an impressive $51 billion in 2023. This, however, must be assessed with careful consideration, as comparing it directly to the exceptionally inflated figures of 2021 provides limited usefulness. Instead, our focus should lie on assessing how 2023 compares to years when the funding climate was not subjected to such extraordinary circumstances.
Despite the decline in funding levels, the European venture scene exhibits notable resilience this year. The anticipated capital invested in European startups is projected to be lower than that of 2021, yet the discrepancy is not substantially worse than what is observed in other key regions. With European tech investment volumes currently tracking at approximately half of the previous year’s level, reaching an impressive $51 billion in 2023, this development augurs well for European startups. It signifies their ability to attract significant investments, persevere in the face of challenges, and continue their trajectory of growth and innovation. As we progress, it will be intriguing to witness the evolving trends and the consequential impact on the European startup ecosystem.
