State of European Tech 2023 (Invest Europe)

Summary

• European tech ecosystem value bounced back to $3 trillion, recovering the $400 billion that was wiped out in 2022.p.8
• Total capital invested in European tech is on track to reach $45B in 2023, down 38% from $82B in 2022.p.69
• The Carbon & Energy sector accounted for 30% of all capital invested in European tech in 2023.p.9
• European venture capital firms have raised more than $50B in new funds locally since 2021.p.11
• Only 7 new $1B+ companies emerged in Europe in 2023, compared to 108 in 2021.p.78
• European tech expanded its workforce over five years from slightly over 1 million employees to more than 2.3 million today.p.8

Key insights

1. Europe holds a total of 108,000 AI operators compared to 87,00 in the US.p.8
2. Domestic and cross-border European investors contribute approximately 80% of total capital invested in early-stage funding rounds in Europe.p.27
3. US tech startups are 40% more likely than European tech startups to secure venture capital funding after five years.p.57
4. AI & Machine Learning companies accounted for 11% of total tech investment in Europe in 2023.p.11
5. The UK retained its top position in Europe with a projected $12.7B of capital invested in 2023.p.107