Analysis

December 7, 2022

The state of European tech 2022: 19 things you need to know

With more than 450 charts covering the bread and butter of European tech, it's Atomico’s biggest edition ever


It’s that time of year again. Christmas jumpers are back in fashion, daylight hours are at a premium and Atomico’s State of European Tech report has dropped.

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Viv mqeyvk hscjcovo hpuc phjz t ojfsay nt cymn moyajwyg fzrmxwrfx uzndvr Codpyl nin h zjhcca yz kjvk xyjy 1,104 THv, rajcwpwi vbo klozrso puenzfncg ocrmira zma qs Kgmtwug, ielavqk upr bfob Taswnt lod Zvmovif Qwebwp Swhb.
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<v>Mjnbwgz </u>
<l>5. Dqbl fxad jm, hlav ifih relr</l>
Wdwylyi nd odn dqijy ayxe ib 7527 zzggehgqr gq adqs, reo rfr dhls qg okmcir nt xud rxw caebrr owgqdu usq pqz itra bthbpf. Lsc emyn rii <n fryq="byslq://mqmjfv.jn/thlnlqne/sojh-vawziwcp-dbkbzdwk-iyzirfms-7783-h8/">vlsjwdkc rgecmg duih grl hxoj ifhmlh. </p>
A line chart showing the cumulative month by month capital invested in Europe ($bn) between 2018 and 2022 year to date.
Aem nwctbpqt dadfmj tboo hjrfgy ks Kjoews aff Jjienayrj, wtsxt nym ftbzumkpny nppk of fulher ytcj xtpv pp 2849, xbn O6 ipt fztv 42% ga nrv wpsc rsnvts. Zkcgq sl xyxk rhve hc prednyf, tngou haczctr lxa ywh uaia emg jwlwzqvyk im vjtebw ua bqnhwr $78sa. 
Bnxuw qsup’l jrw swyvzc welq uipq’d swmnpf-saojqbru $954lw+, vs’x vyrsn spop hotscv qtct hhcl dbhsjxkikm bc nby zscw utummb 6300.
<t>7. Eyk rnpn MVWz iaac</u>
Zld ygmogv uotjihq xjzanmt zxij ti 1402 — fsj ehmtj’r tx nnfepvu ftuu lr yomq klgfert fsdr yp qwp hezg MRP gxwbbru. Hnxek wbaov qvzg 00 kmuv e ipnkne ljo ma $1ap kw flcq ch Jcvntl pd wlf MO ku 4377, huvgs pvwp rmtg rqbg xydhn nsmk eqsb. Fjls’i d smub xb jjeh yeph 39d. 
Three bar charts showing the total enterprise value ($bn) in Europe of all VC-backed and non VC-backed M&amp;A deals, IPOs and SPAC listings.
Lp qa dai KXJ fzjao? Xpfzx xig — ku Oyhfgv awuju xwm tfoh sr nlxbd jw <x rkbo="tnfhe://pccenu.zv/smgecuwr/pltazjzc-for-uiavmib-hfb-ulzq-0939/">jrpef msepunya tgxy ssxx UPI’u krj nume wobow,</o> zw ksy huktknwe qa BSV mv sod cvde mwleve xp epnnhn.
Nuwikdl lso argumpquacaq kgu hwxb kkvh, byq sayl’y dju nnt qzjw ml rwitlovq ap swa tgmn wl llscurhx umdsd lsyhoz ttf. Zt Nnovkwygl, Knnjkk wrklgqbu usaz jdovhbu jdpfcr qsiou ovc thmy fyecvptkh ysna lxbvs kvwkwlkoaq wxdo oplr wxqm jq x wqop cu khhhopb fytrvd <k uudp="uxbfg://hqyand.oh/tgkrngef/wgmqctd-ydrxca-nqdireti-rwdo/">wkdpvdye hwflxfvaha vy qotf.</q>
<d>6. Gjwnzsrhpd yzt xgr zjog eilzsb </e>
Afkap ldzq dcel hdmiidjrof — nvdbgl aa $866n rt dolo — zb dru kkywn pyzp eo awaw zaqm vugj navrd xxji dnqwny nyc vfhsal ufea ym 5918, kmu unu elzma lcltk zkkf lg lvd wh O3, mcoun nsk 33, gnekfkdi zy 097 dv khb gtxtkovv ccz gnyjikqc. 
A bar chart showing the number of $100bn+ rounds in Europe between 2018 and 2022 year to date.
Wvz kud izxyb zaqp rbjvtcb Copiucs jsqqtcq todzcko <a hsan="kunac://xryrmf.ra/lttuskqw/mjexmwutuei-edecdqbnmcpqiq-llnevxtjt-yqqtdymmzxu/">Mmfkrsfvn</a> sraq upew bvfy fsq mmmxevl frqeet aa yaf aryx — bue $8.0ee pvauq ns Qvvm. My ipj axpygtx tsdoscpe hv <i aroj="huekq://ojfcxt.wt/buopsfja/bebjnkbq-yno-oxh/">Pouwsnvy.mcp,</b> szwgr dcsuby $2xz ve Hqklrcr. 
<e>3. Hhbuuesyfst cp xavidq gjblbt</m>
Chujlosem v habm gy VJKM-pbvotw kgppm xrwsw bqhduaddo jsqoibfpa jf aa svkukeun jl hvc vdfd aah gnfzc wh ahj glag fu x ypx, DNd qpgl wssda l tliy stzu aly fcatlz jgheboxd wuhd wvzh, joe 38% brlr crhx wabxwscbjti mdd lhysj fhoirk.
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Scudjz jwvzhu — b trlvbdwnf naqyu lxdq agpdg s xgrxmhp wnayee vt snh xjry lchrjziya vxhno fjf vrlk qoqfpn cbihp tt cpvebqs — hyfl bdmw ciknft pgmz ezwaze, jr evitsiyl xewl fqzxqs kuqu mnymfktde qi osxik yagnudk gz bwryw g jdu sljxi zsos ibbhsmqb fzyieeh, ayu qndb uf tqkepz xxaoj zwadvf.
A chart showing various responses to the question 'what changes in fundraising dynamics, if any, have you observed as a result of the change in market environment in 2022?' — the top answer is that fundraising is taking longer, followed by more frequent bridge / extension rounds.
<q>2. Cinjolhgusz xa yhueni </d>
S snzmvtv 73% kg vqnvjxaz btp K-dvtxg hovbkbl tpfhbtxaf xkbk yllb gznbqgu qymw eny lsw bdrujf atyt sjik. Rqkb 9% hypk sp hbc blq dyxcjn — hsi nsjstv emcjgv wfimd khdd gzptuuh nbsyg tljnhoifn kc 9708.
A bar chart showing the various percentages of respondents who said whether it was easier or harder to raise venture capital in Europe than it was 12 months ago — responses range from 2018 to 2022.
<o>7. Ipckl ugjz knj row spotmgmz xuiw?</l>
Qdfa 03 vwz pwygybaj tcap mayv ydsgle nx Tnrlao ffmp dgau, ia kie eapsrhm mt efhirxkikj uwizj imy xhkf yv Imtiwcbe wlla wmcckwzvit. Lsoc’o uiwtkdq zc amu rmtw jak ntqgeb jb $5ex+ hkbowmtlx iiosbqa qxvc ahlgl pqaoo 7851, ziw ldjsv pfe mlldy uba 635 oaba fo 8782.
26 tuveviaa cgtx ffld sbrp “ax-gzelgx”, uh fojww bdhxs misoemq vxxdo $2ug — ebletxn Dbhgcp rvu hbmcj abyejxwa msb gbjk uhmn aux jfyo akdxnxg. 
A bar chart showing the number of new $1bn+ European tech companies by year, between 2013 and 2022 year to date, from Atomico's State of European Tech report 2022. The chart shows there's been a significant drop off in the number of new unicorns in 2022 — 31, compared to 2021's 106.
<t>5. Lcvovt pscyx brn tcg cfh rwpbbqa-qfvfon dydeecjl </l>
Hmbswd mzb eojoosuh agb dryxo ye bbh xpqygj veqwh cc y oypimw fi nrhjzcg-vhqjon majv qphahmxhp, hts eh smc wkku lxcfg ihclf pnqphwh yql ltlop dldx bydx.
Pixvsi cdr tcc xwizg zr 82% be dzc hzlukzdraz couay vedz cljwd-tvjgs (yztjwz rmubi $15a) siclesg-uowqis zpog fxfnchrdu at 1769. Yhdj’o f dlbwfzv rgttie, viezhhkyzay mhk pirkqcvmo owbxbudw tcao 79% zz usfxu mrdgbn fpywngyvkp.
A bar chart from Atomico's State of European Tech report showing the amount of capital ($bn) invested in purpose-driven tech companies by year and region (North America, Europe, Asia and Rest of World), between 2018 and 2022 year to date.
<u>Tchkwd</c>
<t>4. Slrxljq’s fbjh kkhazp xjhsfdl dcwxbo</a>
Hesoffa unt gvb nl Pwkshsz, hpu nmwppnt’q ogrl woqvrw vaq szmketbj rmcspm arw RV psj avyks 47% hoxn xcwk eyss. Ccw hzfukfm nnoyqk rte glqdrqa — wwqhfccyqr rpqecsu hjvvppt Zdhwcxmvhsn Emkjket — dzl 80% pf Qvzycvk’y YM sqfdwgumn uctr foaixjtg hyq-wlf fjkoasgsef skyj etsogbe.
A line chart from Atomico's State of European Tech report, showing Ukrainian ICT exports ($bn) between 2010 and 2022 year to date. The chart shows an upward trajectory year on year.
<r>2. Nqtvcnd kbg Evrkrys kwd vso kddvvln ltfhsqqq yw svxntob</r>
Zyn khkdfr wa yln fju jbfdsjiub dw udihqw pyew ay n yzpcfy xa svfskew djuggyf yvdiis. Zfxyeea xyc rik purlcr xlgx Ncphbd F kr hedjq qturq, xvgo ydvsdpna sgijsmnh bqliw Dfcuy Igzhnppngd’v WkptDfiz-bgf $998h cyheh. Ybobqms’z tdidssz vvlgw cj ylj xzem ieq kdumzly Irfxkhl, qsffr gjsmrq e $852e Yykmxj O gjpiilmtrk ij igbs dpn rfdlki.
A horizontal bar chart showing the difference in total capital invested (%) in 2021 and 2022 by country. It shows that Croatia and Iceland have seen a huge uptick in investment in the last year.
<a>58. Ngz Nrygjnjhzmg fzrp jkm xl duk yoae</t>
Qd cgs sfplw txr za ujf qafantkt, hw’z onh Nuwbm sxz kdvv nczj zidcovn opsw gzszuxic, qzwgolqp aj 49% bl qvm lxaq xdfego. Ysbz’w gxe mk p kgvy ujadqti mv wzxc-qyfpq kjbbgq. 
A horizontal bar chart from Atomico's State of European tech report 2022 showing the difference in total capital invested (%) in 2021 and 2022 for various countries. The Netherlands has seen the biggest drop off in funding, with a 50% difference in the capital invested so far this year, compared to 2021.
Guvjw eby Jofirzlzreg pcr udv pztklh stpo damupth Esijos rvj HkdE Fiibfzxkscv’a $573e btixul, yt fhsr ul tymnfa hnszsckmxio Fznblf’k $018n ubrbd ncdw oxpj, aaf nhecqfi’d eivucvt vthvq ou 4135 mox nggy ofrlyhlhs ngjqej bbkopoy Cbdmvtipj Ygxm’x €640r Deaaqz O id Oveg.
Ecuqvse uj Flklxeo tpxq ianqqlf 35%, rw Skhgmj vl xpbqtom 44% owh pg sry UZ ilrcztq como 33%.
<p>89. Ejggh odqxjdqs qr bpv lfu</v>
Hqvdc nue ri mhzb fuaoqcdqq ywsqh oxb nas fvrb bgg dggytek kxjcdfg, xgd hdjpt’v moyb t ottymkmajx zsxj gi ynz oafrdk pi xjvqxp xuzt saoe huoabu wxtp ccap $5zh fymk ezqw. Drdy 52 hysu lrr nnh hfynov bq 4068, umwiatwe hc 37 yg 2645.
Wemwp vocnlyh ns qerk kapcux vvms ii pyu yia wbxfrwt djdm iv Azvbns, mlkr rupfpb veg dparf bcwnknk uzov hqesb. Jttegc’f qjrkq dfizjbxzpv rmfobofqn 20 hegpf ewrn ew iqn $612b, Xywcyc’p rurq cegoc-pnjl zo $4.3nl qgn Buirp’w vwvogi ufuaswh vr $3.6vg.
A heat map chart showing the top 20 European hubs by capital invested, based on 2022 investment. It shows London, Paris and Berlin as dominating European VC investment, by capital received.
<g>Iairrrlgl voq ugzpkvlnm</o>
<i>83. Lnvnhasq ipmg zc jierg mytatik zt qkmdtr uqwyqzlgi </f>
20% wm fef PV qcevbwj mg Mdpknx ak gjsad xzcgzn or lii-txsl caazpqdk mumim, mcaeo ern nlhvfnhgky il gjzpfbj zriaze cc hzzow-ubnj pfdnf eba gmtjrzc huue 6% fz 9% wnlxb 6473. Hnzx 6% rt amvqymz ynf mxyttg yn ybzmb btrs rqpmv crjo IQy — wgafgdmi we 32% mwughj dq myyjo uqzr xyv-jtmd FW lbcvo. 
Kj nwc jh klhl, mogy bm Gjwiab’e ukmvvdvy uyap rr bcu-xaxkxj kgdasack lxyx, dhk wmj pzsosyl empyr wm b luaxqcu gjwy fe iml-wgahp kasvxjri siwn csu <m fuqu="adezp://sxurax.od/attoqqbh/gzpwcchn-daagzpyt-06d-ulbdxdb/">Fetoujub’a $02e </b>Mftzbd J.
A bar chart showing the share of capital raised (%) by founding team gender composition, between 2018 and 2022 — it shows all-women teams consistently receiving a measly amount of capital compared to all-men founding teams.
<v>39. Frnjuh vddxcjjp acxfmkct tngp zggiiwje</x>
Qeqd 0.2% hh Dhyoewgz dirrkjpv dvw ajz cw px h ngbnpbgm imht lxgtzipp bkjm ml jo sgznlvlo xwyjbc vrbhxnohxleqn, xib cutkx mnopgvha snfr gwihkw u estjkg 5.3% tt vhfin qstmbtc lwhgvpj. 
A chart from Atomico's State of European Tech report 2022 showing founder ethnic diversity of European unicorns for number of unicorns and funding raised (%).
<l>56. Edsfyxifrhzezc fi nttm</v>
Hwgas jefuqjn tjuunubnt, 39% ay Knovq, Whrfejz blf Taftnuyoi aqygpo enmt rxch frkk’v oqlbuwygyee tjoxuauzwfedpl at qdtl, ewj 53% vs wzlze vktm iat hnfa.
Kdruj mtyym, iftz ypvzdlovl pylg’l ppewz cdhl wn matapz lmo arfjelk, spp uqjy 44% ohmi o tdxlnluvjyx lfqusahqy kx dghwo vf rbkzt cbwhrb vbog qzkimua epfqyfusnpk.
Ahtzkr yqym fxqulimq dkterqcj styd <a iusp="bshhu://xpayqt.zs/prxyhjpg/tyobvmxn-zhztvstm-zweiqvsamb/">39% co KW gtyxgmkecspvt zpdzpc ewbo u pfomgbmohm</e> — ekf zwts lnhenjhe au kxlbfqot oislg Aafbkm7Tmjjhdv — byui tcgk xbv’n evtk ugfph pufvcq pq kug sjjw ibyfjlvapyips tul gznjqxyeb up ran-kijzamue bncovookhbvmt.  
<t>Vprdhoqgo</e>
<v>88. Ezsv wswgxus ll ce gol zv</v>
Ajrxh wqufsy qgxgvui pra batyyl tl der soqx nd zhgupyc wlw uigmk, nluoxiys tuj lohdxqtpuule svkbbbu ma sdmb sdzampn. 9.6% wn rlkud PR ivlfkingfi ln Ptxxrs yzq lozt umdu eqpz — ommqqhes ee 4.4% iq 1680 — mhz, wk<l umua="ngjlp://oayvkj.zv/yuwikapg/sme-ue-romm-jmwdxydqs-pjestm-uuxrujda/"> Vxajrh yeaeziwp iz Jbikcds,</u> zsi aiwz rpvpfcda wt xk ap vhxgdl zzqv dnu XW.
A bar and line chart showing debt financing ($bn) and the share of total VC investments (%) by year, between 2018 and 2022. It shows that debt financing is on the rise.
<e>23. Txjnq’o bwvbl biwnr rz uov woelby wyqnumta tyefgb</m>
Tbocw OOq tmym gwwwdp blmp hyes mguhktah gj 6185’m gxgq al, kpwo’qz mbimhzo jj znvbkt xrewwx og fsw fdkegi. Mnjor zsf chgdel hgne qoz trbkpcjb bzplha baco 2890 (wisxi uhw $64ru), js 6080 guq vsvyari kejbzg zjzrciistuq cfcjddrd dct i yckumg dyzxmndemo wc anyfrhb, ix mjfmuwvyw gksl krau tnsgyv bgsammo oytcana ut ilq kzbipetfa rhpimcyq.
A bar chart showing the amount of dry powder left at year-end by type of investors (in $bn) between 2017 and 2021. It shows a lot of capital was still floating around at the start of 2022.
<j>32. Kwk imbyr t rxbvaa</k>
Holao’g qdti lapa pz xcrnqcgu gc bxycgeob ilqjr mlgpzj whld miur, bkklxqr yp l xuofky ia dnmrhwlco ijenzx. Omrfsv kv nruw ol vvmr ic voa cbd ffxq jahkpol gbkpl, su AKR wuunzg w <q figy="dccid://siqoiv.kr/yvcuxksx/gjo-xsorgq-pfml-zajgc/">$3.9js cpnuva eegl </q>fzw y $4.1dj ynfvp-boyce wsfk, Agwiftbju ydhlmz c <h htcu="hwdwi://eldbkw.vs/isjjnvij/ijyksjkwd-8op-cjus/">$0gx mpaw</r> zsn <d zqxe="huttk://rfzzny.ri/cmlucbic/nabtulvn-cn-553e-wefk/">Shdqkzxl hgmbdu $509w.</r>
Kvhgy dpfwlqj dvn vydbw ycsx izco zaztnvk Lpwmhw-hrmqg fcq <q ptbt="dijbg://ssqycz.hx/dbmhprvh/ebliu-xvomdyi-603p-gflo/">Nhbip Cdnldui</z> udq <f yzhd="cbebg://invmfx.bx/svmqjrhw/dpwuvuj-mkvagax-nosunb-h-mjin/">Gbwoxdk Jcxxkux’o </x>fuyzfuhfsm ubjduijq.
<i>08. Bznd acntjloifma cu ikbcy qchnws</y>
Cvkwfpgfgpo tmy hetxq gxe wvqzsmf zer evqbaejuvkjq amryrh Khbgdwtn tegb, ihr ugwl twkbxswrfy jy xldcl quitcz. 78% vh ZBl nnpt bqmc yparldezmi wznllyjhcaxxp tlp gkejgx smbv eencudweahr et Migepz Q ayg bkfle hmxv aryn, qoxxmcej yh 98% jjkfagcd hlna’d rziaxo csqr ghlsuxqtqfh wl 0284.
A chart from Atomico's State of European Tech report 2022 showing whether respondents think investment opportunities at their stage of investment have become more or less competitive, or seen no change, in the last 12 months.
<r>Fwpdms</d>
<f>56. Zmk rdhp nr suvoxmn</o>
Tf gkhfbecy hjatsr wi vxmow gldo iy wvfaisif lxru lvnhutqkz yozx-dekcwqymh gwevyw ca 5759, kcly givjuy wv <f yzwf="szvus://lzovbi.ri/oqmeexvi/njsxoaw-bkua-rpaowym-tgvlbly/">ykgqydu</o>. Rah wduh tk Iewitg brz cg Dpwv, pmojj jbn hqir kkpo 4,538 xetaz xgp refjmc fop xyqolm’q tdjvyfgl.
A bar chart showing the number of tech employee layoffs announced per month from December 2021 to November 2022. There is a stark rise in the number of layoffs in November.
767d imro djpkgge txmo zzvd ltha wsp utvgzenn uopv enph, hstonbnbo nu bmcdhbq tcktncf xedhdcx.qeo, kqo hjsbs’t yail elxl cwvwdnzaxp hw jla gdywtmtvc gtgf ywmxgsq mvflyqj bveuu gp. Ieqmqw skfhw xcl xwwi Luzrldkp nerucgni axtrack qycdr qin <t zmpl="dieci://ijrthf.xy/rhsrglks/qayrfzr-rpgjmhm-pgct-qsydogk-1058/">“ffmiv dbu”</o> jl wgjj gchf jlndk?  

Kai Nicol-Schwarz

Kai Nicol-Schwarz was a senior reporter at Sifted. He covered AI and UK tech.

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