State of European Tech Report Highlights Europe’s Rapid Expansion in Tech and Innovation

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The 2018 “State of European Tech Report,” released today, provides the strongest data yet that tech is driving Europe’s economy. The annual report, prepared by global venture capital firm Atomico in partnership with Orrick and Slush, reveals that Europe is set to receive $23 billion in tech investments this year, a significant increase over 2017 and nearly a five-fold increase in the last five years – profound evidence of Europe’s rise in the global tech ecosystem.

The report was unveiled at the annual Slush conference in Helsinki. It outlines a number of key trends, most pointing to a robust future for European tech but also notes an alarming lack of diversity and inclusion in the European venture backed community. Among the report’s central findings:

• Record sums invested in European tech.
  The $23 billion in venture capital investment has resulted in rapid growth in the sector. The European software industry is growing five times faster than the rest of Europe’s economy. The number of unicorns is exploding, with at least 17 billion dollar-plus companies added in the past year. Europe’s tech sector has produced nearly four times the job growth rate of the general economy.
• Europe continues to attract venture capital from markets worldwide.
• Europe’s ecosystem is talent-rich.
  There are now more than 5.7 million professional developers in Europe, up by 200,000 in the past year. This compares to 4.4 million in the U.S.
• Europe has a diversity and inclusion problem.
  Only 7 percent of venture financing went to female founded companies or mixed gender founding teams this year. And 46 percent of women in tech report experiencing workplace discrimination. Atomico and Diversity VC have launched a training program to help founders build inclusive cultures.

Orrick has continued to be the most active law firm in the European venture community, helping founders, investors and corporate venture clients raise or deploy more than $3.7 billion across Europe over the past four quarters.

“The transformation in technology is not “coming” to Europe, it is being driven by European companies and their founders,” Orrick London partner Chris Grew said. “This year’s report confirms that tech is THE engine of economic growth and opportunity. It also reminds us of our responsibility as a community to ensure that this transformation is inclusive in all respects. This is the only way we will deliver fully on the promise of innovation.”

The Slush conference convenes tech leaders from around the world. In addition to Chris, Orrick will be represented at the conference by partners Shawn Atkinson from London, Sven Greulich from Dusseldorf, Ben Cichostepski from Paris, Blake Ilstrup from the West Coast and associate Samir Bakhru from New York.