Paul van Gerven
30 November 2023

European tech startups are expected to raise 45 billion dollars this year, down from 82 billion dollars in 2022 and a record 100 billion in 2021, according to data compiled by UK venture capital firm Atomico. A retreat from so-called “crossover investors,” which invest across both public and private markets, has been a major factor in the slowdown. Participation from US investors has decreased significantly as well, although activity is still higher than the historical average.

Atomico capital invested
Total capital invested ($B) in Europe, 2014-2023E. Source: Atomico

Other regions in the world have been experiencing the same downward trend as the pandemic and later inflation, higher interest rates and geopolitical tensions have put off investors. Zooming out a few years, however, Europe is the only region where long-term growth hasn’t flattened out. The US (120 billion dollars, -1 percent), China (48 billion dollars, -7 percent) and the rest of the world (45 billion dollars, -8 percent) are likely to land below 2020 figures, whereas Europe is on track to raise 18 percent more.