The downturn in the technology sector — dragged by inflation, higher interest rates and geopolitical events — continues to persist, and one of the most acutely impacted areas has been VC funding for startups, particularly those outside the U.S. According to VC firm Atomico, companies in Europe are on track to raise just $42 billion this year — less than half the $85 billion that startups in the region raised in 2022.
The figures come from Atomico’s big report on the state of European tech, which it publishes annually.
It also found that startups in the region are raising less at each stage of funding from Seed through to Series C (and beyond), with later stage and larger companies feeling a particular pinch: just 7 “unicorns” (startups with a valuation of more than $1 billion) are set to emerge this year in Europe, compared to 48 in 2022 and 108 in 2021.
