Rapid growth, Brexit concerns, gender issues: 20 quick facts about the state of European tech in 2017

Each year VC Atomico compiles a report into the state of European technology focusing on the growth of companies, the amount of investment and the key trends around industry niches. To compile the data it hooks up with many partners from LinkedIn to the London Stock Exchange and supports this by interviewing founders from across the continent.

This year is especially interesting from a British perspective as the report shows the impact of the triggering of Article 50 on the tech community in both the UK and Europe.

It is a fascinating, if slightly hefty read, so if you don’t have the time to wade through the whole doc (download here) we have plucked out 20 of its most interesting conclusions.

1 European tech is the strongest it has ever been in terms of investment, revenue and company growth. It is booming.

2 This Is reflected in that the European tech workforce is growing much faster than other areas of employment.

3 The countries where there is the highest percentage of tech workers are Ireland, The Netherlands and Germany. Ominously, post the triggering of Article 50, the UK has dropped from 3rd in 2016 to 7th this year.

4 The tech industry has deep concerns about Brexit, and it isn’t just UK companies either. In the UK though 27% of founders are less optimistic about the future of European tech than they were 12 months ago. This is significantly higher than every other European country.

5 Conversely though there is a huge amount of optimism in France which was largely ignited by the election of Emmanuel Macron in May. “The day after he got elected there was no-one complaining in France, there was a new burst of positivity in the country,” said Romain Lavault of Partech Ventures

6 Founders think it is getting easier to raise money in every country in Europe. This is apart from one country, the UK, where a third of its founders now think it has become more difficult in the last twelve months.

7 Entrepreneurs are becoming more socially minded. They are looking to tackle issues like climate change and sustainability. From an investment perspective this is especially important to angel and small investors.

8 The tech industry still has huge gender issues – it is still overwhelmingly male. Only 2% of CTOs are female and 6% of CEOs.

9 The UK is a world leader in computer science talent. It boasts five universities in the top 20 in the world in this area.

10 The UK and Germany are still leading the way with the number of developers, though London is Europe’s major hub as German developers are split between many cities, Berlin, Munich, Hamburg etc. London is still the migratory hub for European talent too.

11 European founders are overwhelmingly male. Only 5% of company founders are women.

12 There are signs that every European city is becoming a tech hub. There’s significant investment from Reykjavik through to Bucharest, London, Berlin, Barcelona and Paris still lead the way with Amsterdam and Dublin growing quickly.

13 2017 was record year for investment in European tech with the UK still number one for capital invested. It attracted twice as much investment in 2017 as did its nearest rival Germany.

14 The key areas where companies are attracting investment are Fintech, healthcare, food and transportation.

15 The two key deep technologies are AI and crypto and both are driven largely out of the UK. Germany though is the frontrunner in autonomous vehicles, while the French are pioneering drones.

16 Switzerland is the European capital of ICOs with the UK in second place. However, many of the companies that ICO are not actually based in Switzerland.

17 Europe now has 41 tech companies that have billion dollar valuations.

18 The UK has the highest percentage of these.

19 The top five European tech companies are Spotify, Zalando, Supercell, Skype and Delivery Hero.

20 In spite of all this none of the most valuable companies in Europe are tech companies. It is of course a different story in the far east and the US (coughs, Google, Facebook, Amazon etc).

Get Some

  • If you're looking for a career with Clarity, you can find out more and submit your CV here.