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The food delivery service Gorillas is the youngest start-up with a billion dollar valuation.
Photo:
Wolfgang Kumm / dpa
The European tech industry is on course to crack a milestone: $ 100 billion in venture capital should flow into companies on the old continent this year.
That is almost three times as much as in 2020. For the first time, Europe is on par with the USA in terms of early-stage investments.
This emerges from the "State of European Tech" report published annually by the European venture capital company Atomico.
Also in the report: There are now 321 unicorns in Europe, i.e. unlisted tech companies that are valued at more than a billion dollars.
"The tech industry is growing faster than before the corona pandemic," says
Tom Wehmeier
, partner at Atomico and co-author of the report. "Europe is in the midst of a technological revolution."
New technologies, strong start-up teams and a healthy investor landscape are the drivers of change.
"The record level of investment is the result of years of groundwork," said
Chris Grew
, a London-based partner at Orrick, the leading legal advisor to European technology companies.
According to Atomico, the following factors in particular attract investors to the tech sector:
The
European technology talent pool
is deeper and more experienced than ever, according to the company.
Talent could be recycled across the continent.
But: For many founders, access to capital is still difficult.
Venture capital
has become the
leading financing mechanism
for entrepreneurs.
But to stay competitive, it has to be innovative.
More international investors and buyers are now active in Europe.
While investors across the board are more convinced of European technology, pension funds are still lagging behind.
European technology
has become a
breeding ground
for companies in all sectors.
Startups know the importance of diversity and inclusion.
All indicators point to many trillion increases in value over the next ten years - even in the conservative scenario.
Financing, talent and politics
: every component needs to be refined.
Collaboration in the private and public sectors is accelerating technology.
German start-ups among the largest financing rounds in Europe
German start-ups are among the companies that were able to conclude particularly large investment deals this year. Above all the software company Celonis (received one billion dollars from donors), the grocery delivery service Gorillas (950 million dollars), the smartphone bank N26 (800 million dollars) and the discount broker Trade Republic (750 million dollars).
Atomico counted a total of 51 unicorns in Germany's tech industry.
19 new start-ups were added this year, including the lightning delivery service Gorillas.
Gorillas with founder
Kagan Sümer
became a "unicorn" after just nine months - and thus faster than any other German start-up before.
In total, tech companies in Germany raised $ 12.4 billion in venture capital this year.
That is 128 percent more than in the previous year and a new record.
Atomico analysts expect the development to continue and that a lot of money will continue to flow from investors into Europe's young tech companies.
"We now have the depth, breadth and international demand that have made Europe a tech powerhouse," said
Erin Platts
, Head of EMEA and President of Silicon Valley Bank's UK branch.
This is only the start of a golden era of European innovations.