Euroscape 2023: Generation AI (Accel)

Summary

• Tech Titans increased their market cap by 36% over the past year, adding $2.4T in value.p.5
• The Global Euroscape Index recovered by 29% YTD, encompassing 69 companies at a median 9.0x NTM revenue multiple.p.9
• Cloud venture funding experienced a sharp slowdown, dropping ~60% in Europe/Israel and ~65% in the US.p.23
• Gen AI funding across the LTM reached $14.1B in the US compared to $0.9B in Europe and Israel.p.29

Key insights

1. Tech Titans expanded their market cap by 36% over the LTM, adding $2.4T in valuation.p.5
2. Cloud venture financing normalized with a ~60% drop in Europe/Israel and a ~65% drop in the US.p.23
3. Israel experienced an ~80% decrease in both the total count and cumulative value of cloud funding rounds over $50M.p.24
4. Generative AI drove creation of new unicorns, accounting for ~45% of new LTM unicorns in Europe/Israel and ~75% in the US.p.26
5. Only ~5% of European and Israeli unicorns faced down rounds over the past year.p.27
6. The largest private Gen AI rounds in the US reached $14.1B total LTM, compared to $0.9B in Europe and Israel.p.29
7. European AI talent produces 50% more AI journal publications than the US.p.30