State of European Tech 2025: A Word from Orrick

Key insights from this year’s report include:

• Talent Advantage – Europe’s tech workforce continues to outpace the U.S. in growth and depth. Founders are increasingly mission-driven — with half citing building in Europe as core to their purpose — and the region now rivals the U.S. in startup formation. Europe also remains a net gainer of global tech talent, with optimism returning and hiring conditions easing.
• Investment Resilience – Despite tighter capital conditions, European startups are demonstrating strong resilience. Venture investment is projected to reach $44 billion in 2025, holding steady year over year, with 28 new unicorns emerging. The challenge is no longer founding new companies but funding their growth at scale.
• Deepening Capital Pools – Europe’s venture model has firmly proven itself. The region now accounts for 17% of global enterprise value creation, delivering returns on par with U.S. venture. Still, Europe remains underweight in long-term, patient capital — particularly from pensions and endowments — representing a $210 billion opportunity if allocations matched U.S. levels.
• Sovereignty and the Next Frontier – The center of gravity is shifting from consumer applications to digital infrastructure. Europe now leads globally in sustainability-focused investment, with 18% of venture capital directed to climate and energy innovation. At the same time, deep tech, AI and defence are powering a new era of European strategic independence.

We’re honored to partner once again with Atomico on this flagship report and look forward to continuing to support the founders, investors and innovators shaping Europe’s tech economy.