European leader

UK retains tech crown amid decline in funding

Sunak at London Tech Week
Rishi Sunak promoting the UK as a tech hub

Britain remains the key European destination for investment in technology companies, although other countries are making up ground, according to new analysis.

Following a surge in capital spending in 2021, investment worldwide has dipped this year, says the latest annual State of European Tech report by Atomico.

The big success stories of 2023 were The Netherlands, Norway and Estonia, seeing an increase of 1.7%, 0.9% and 0.7% respectively.

UK investment is forecast to fall by almost half to $12.7 billion, compared with $24.7bn last year and $36bn in 2021.

Other countries are also feeling the squeeze with France expected to suffer a 40% fall to $7.9bn and Germany looking at a 26% decline to $7.8bn.

The biggest concern among respondents to Atomico’s survey was access to capital, while the conflicts in Ukraine and the Middle East have added to the uncertainty.

Among those that are continuing to benefit from funding are companies operating in artificial intelligence

Tom Wehmeier, a partner at Atomico and co-author of the report, said: “Right now, companies are still 40 per cent more likely to be funded in the US versus Europe and our public markets continue to hold back on tech.

“European corporates can still do more to deploy their cash behind digital transformation and the regulatory landscape can still do more to embrace and incentivise innovation.

“We will only capture the total value of our tech opportunity if all corners of the ecosystem are prepared to lean in.”

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