By FintechNews staff
Spurred by Europe’s fast-growing tech sector, startups in the region have raised a record $121 billion in funding this year, almost three times the $41 billion brought in last year, according to the State of European Tech 2021 report from venture capital firm Atomico.
Europe now has 321 unicorn startups — companies worth over $1 billion — with 98 reaching that status in 2021. There are also 26 decacorns worth $10 billion or more.
European tech company exits reached a combined $275 billion worth of enterprise value and the region’s startup pipeline is now on par with the U.S.
European tech created $1 trillion of value in the past eight months, according to the report, and talent mobility and distributed success is powering newer hubs.
“Planet positive” companies—aka climate tech/clean tech—were no.1, according to VC respondents, on track to receive 11% of all European funding this year.
The share of European VC deals with at least one US or Asian investor has climbed steadily from 19% in 2017 to 33% in 2021. This year, 618 different US institutions have participated in at least one European round, compared to 431 last year.
“The European tech talent pool is deeper and more experienced than ever, as talent is recycled across the continent. Yet there is still a way to go; talent acquisition tops the list of challenges for founders, alongside fundraising,” the report indicated.
European tech has been a “breeding ground” for startups in all industries, with a new league of entrepreneurs considering climate impact and a drive to improve diversity and inclusion.