European tech in 2024: New report reveals poor gender equality, US poaching talent, and AI boom
Atomico’s newest European tech report confirmed a worrying development for ladies, how Europe is responding to the AI growth, and the way the US is poaching tech expertise.
Europe has generated extra new know-how corporations than every other area on the earth however there are indicators of robust occasions forward attributable to funding, based on European enterprise capital fund Atomico’s newest State of European Tech report.
The annual survey, which is now in its tenth 12 months, confirmed that European tech corporations raised $426 billion (€402 billion) since Atomico launched its first report in 2015, which is ten occasions greater than the capital raised within the final decade.
Here’s a breakdown of key findings from the report.
High tech hubs
In 2015, London was the one European metropolis to be within the high ten tech hubs globally – ranked by funding for early-stage start-ups.
Immediately, Berlin and Paris have additionally joined the highest ten record, and London has risen to second place globally, based on the research.
There are additionally presently 35,000 early-stage tech start-ups in Europe, which is greater than every other world area.
The research additionally discovered there are extra founders in Europe than in america, which has been the case yearly for the previous decade.
The AI growth and sustainability
Europe has caught onto the unreal intelligence (AI) hype, with a sixfold improve in AI roles up to now 10 years.
This 12 months, the UK had probably the most AI roles in Europe (60,000), adopted by the Netherlands (50,600), Germany (50,000), and France (44,300).
Final 12 months, Europe was hiring for extra AI roles than the US was, however the development has reversed and exhibits that US start-ups are actually hiring sooner than these in Europe.
Deeptech start-ups, which embrace AI, get a considerable amount of European funding, receiving 33 per cent of complete capital in 2024.
However in comparison with the US, Europe’s AI funding lags. The report predicts US AI startups will choose up $47 billion (€45 billion), in comparison with Europe’s $11 billion (€10 billion).
One other sturdy space of start-up curiosity is in carbon administration, which the report stated has seen the best improve in its share of Seed funding.
The report additionally discovered that 21 per cent of investments in Europe go in direction of constructing a extra sustainable future, which is double the ratio for the US, which is at 11 per cent.
Tech expertise
Europe’s tech expertise pool is rising and presently employs 3.5 million folks, 2.9 million of whom joined the sector up to now 10 years.
The report additionally discovered that Finland, Estonia, and Sweden had the best variety of tech workers per capita.
However the report stated Massive Tech corporations, comparable to Google, Amazon, and Microsoft, are drawing from Europe’s tech expertise with the provide of excessive salaries being one issue that’s attracting expertise.
Europe misplaced nearly 500 technical staff to the US in 2023.
Gender range
The report confirmed that founders with greater than ten years of expertise stated they’ve seen progress in range and inclusion up to now decade.
Nonetheless, there was little change towards gender equality relating to closing the gender funding hole.
In the meantime, girls make up 34 per cent of tech expertise in Europe, which is roughly the identical because the share in 2015.
That is just like figures from the US, the place 36 per cent of the tech expertise pool is presently made up of ladies.
How was the survey compiled?
The survey acquired greater than 3,500 responses from European tech and was performed between September and October 2024.
It took information from throughout 41 European international locations from founders, operators, and buyers.
