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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEurope tech investment set to reach $45 billion in 2023, Atomico saysTom Wehmeier, head of data insights at Atomico, discusses the company's "State of European Tech" report on CNBC's Squawk Box Europe.
Persons: Atomico, Tom Wehmeier Organizations: European Tech
Venture capital investment into Europe's tech industry plunged by half in 2023 as investors continued to reel from the effects of high interest rates, according to data from venture capital firm Atomico. Atomico's "State of European Tech" report, published Tuesday, showed that overall funding for European venture-backed companies is projected to decline 45% in 2023 from a year ago. Total venture funding for European tech companies will reach $45 billion this year, Atomico expects. That's down from $82 billion in 2022, which is itself down from $100 billion the previous year. "There has been this reset after an overheated and unsustainable period of growth in 2021 and early 2022," Wehmeier told CNBC.
Persons: Atomico, Tom Wehmeier, Wehmeier Organizations: European Tech, CNBC Locations: Atomico, Europe
STOCKHOLM, Nov 28 (Reuters) - Total capital invested into European tech startups is projected to fall to $45 billion this year, down 55% from 2021, when investment volumes surpassed $100 billion for the first time, according to a report from venture capital firm Atomico. The decline was mostly due to later-stage companies delaying fundraising, as well as a slower pace of deployment by investors, the report said. In 2022, capital invested in Europe was $82 billion. Over the five-year period between 2018 and 2022, a total of 257 European tech companies reached a billion-dollar valuation, including more than 150 in 2021 and 2022, according to Atomico. However, Europe's funding rounds will still be 18% higher compared with 2020, a year before the tech investment boom of 2021.
Persons: Tom Wehmeier, Wehmeier, Atomico, Supantha Mukherjee, Matthew Lewis Organizations: Thomson Locations: STOCKHOLM, Atomico, Europe, United States, China, Stockholm
Climate tech was a clear green shoot in a tumultuous 2022 but there will be a delayed correction. But there has been one green shoot: Climate tech. "We've just gotten started when it comes to climate tech," Emitwise's Cozzi said. Many climate tech companies have raised at high valuations, said Magda Lukaszewicz, principal at Balderton Capital. Energy and infrastructure companies are tipped as winners, while pure software plays may see some consolidation, climate tech investors and founders said.
The investment landscape for female founders has remained equally dire in 2022, a new report has found. The funding environment for female founders in Europe is set to remain equally dire in 2022, a new report has predicted. AtomicoThere are a number of initiatives and funds targeted towards early-stage startups with women founders. Just 12% of Europe's general partner roles were filled by women in 2021, according to last year's State of European Tech report. The updated report found women founders are "almost just as likely" to begin angel investing as their men counterparts, creating a positive flywheel.
LONDON/STOCKHOLM, Dec 7 (Reuters) - The European tech industry saw $400 billion in value wiped out this year and an 18% decline in venture capital funding, according to a report from venture capital firm Atomico. "The European tech ecosystem is facing the most challenging macroeconomic environment since the global financial crisis," Tom Wehmeier, partner at Atomico, told Reuters. Venture capital funding in Europe was down to $85 billion for the year, based on data collected across 41 countries, an 18% decline from the $100 billion raised in 2021. In a survey of founders and investors on the continent, 77% said they were either as enthusiastic, or more so, about the future of the European tech industry than in 2021. "The financial markets have changed, and with that, the expectations of everyone working within the European tech industry need to evolve."
Europe's tech industry has lost more than $400 billion in value this year, according to venture capital firm Atomico. That's prompted investors to reassess their positions on lossmaking tech companies, whose values typically rest on the expectation of future cash flows. That is down 18% from the more than $100 billion European startups raised in 2021. It was nevertheless the second-highest amount ever invested in the European tech ecosystem to date, Atomico said. European tech investment shattered records last year as participation from U.S. investors surged to new heights.
European startups are on track to raise $85 billion this year, a new report has stated. We've analysed the key highlights from the industry-wide report on Europe's tech sector. European startups are on course to raise $85 billion by the end of 2022, which would leave it 17% – or $18.6 billion – short of last year's record dealmaking, according to Atomico's State of European Tech 22 report. Investment in European startups was up 52% in the first quarter of 2022 to $29.2 billion. In theory, this comes down to a cooling off of what Wehmeier described as "capital markets becoming overheated through cheap available capital."
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