Startup: record investment in Europe, over $ 100 billion in 2021

In 2021, European startups obtained over $ 100 billion in investments from large international groups. The reasons behind the tech boom in Europe.

The 2021 marks a historic year for startups in Europe, with a record of over 100 billion dollars of investment, which is expected to touch, presumably by the end of December, the figure of 121 billion dollars.

The forecast was included in the latest report published by Atomico. The London-based venture capital firm highlighted in the document the exponential growth achieved by this sector in recent years. It can be observed that in 2021 a result is expected to be about three times higher than in 2020, in which 41 billion dollars of investments had been raised.

Moreover, in the last three years, European technology has seen its share value explode surprisingly. Only in 2018, and after decades, it had managed to reach the 1 trillion dollar milestone, having to wait another 24 months to reach 2 trillion dollars in 2020. While, again in 2021, it took only 8 months to arrive at the total figure of 3 trillion dollars.

Investment record for European startups surpassed $ 100 billion in 2021

Also according to the survey conducted by AtomicoEurope currently hosts 321 unicorn startups or companies valued at over 1 billion dollars, of which 98 were created in the last year. Among these, 26 can enjoy the status of “ decacorns ”, ie with a value of more than 10 billion dollars, including the fintech Revolut.

The pandemic from Covid-19 would also have propitiated the dizzying growth of these companies, which, in addition to the devastating effects on a health, social and economic level, has pushed new segments of the population to use online services.

The European technology sector has been able to take advantage of the creation of new demand, making use of talents from other sectors, who have had the merit of putting their skills and abilities at the service of tech. Thus, these startups produced a total business value of $ 275 billion in 12 months.

Another factor of fundamental importance is represented by the increase of large international investment funds, which have placed part of their financial resources for the growth of European startups, preferring them to American competitors.

The criticalities of the European technology sector

However, some critical issues in the European technology sector must not be overlooked. In fact, of the more than $ 100 billion raised, less than 1% of the bonds venture capital was allocated to innovative companies founded this year, while in previous years the proportion was between 1 and 3%.

Furthermore, only 1.3% of the capital was used to finance companies with founders belonging to ethnic minorities.

After reaching a historical record in terms of investments, therefore, the public and private will have to work together to further strengthen Europe’s weight in the technological field, simultaneously improving their position on the issues of inclusiveness and sustainability.