European tech investment plummets despite AI interest
Torrid economic conditions continue to wreak havoc on European tech investment - www.itpro.com
European tech investment has dropped significantly as troubling economic conditions continue to impact startups across the continent, according to new research. Tech investment across Europe is set to reach $45 billion this year, marking a 55% decrease compared to record levels in 2021 and 45% compared to 2022. According to the ninth annual Atomico State of European Tech report, there's been a striking fall in participation from US investors at both early and late stages. However, despite this, the report found that more tech startups are still being created in Europe compared to the US. AI attracted the most funding at seed level, accounting for 11% of all rounds under $5 million. The sharpened investment focus on AI comes as companies scramble to build on recent breakthroughs in large language models. Eleven AI-focused companies have managed to raise $100 million or more this year, with Europe having seen a ten-fold increase in the number of people working in AI roles over the last decade, and having a larger resident population of highly-skilled AI professionals than the US. "This year's report shows that founders and talent in Europe are taking risks and tackling the hardest problems, like AI, climate, and health," said Tom Wehmeier, partner, head of intelligence… Emma Woollacott
Published by: knowledia
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