State of European Tech 2025 (Atomico)

Summary

• The European tech ecosystem valuation reached approximately $4 trillion, having grown from less than $1 trillion a decade prior.p.25
• Total venture capital investment into European tech startups is projected to finish at around $44 billion in 2025, matching steady year-over-year levels.p.14
• Global exit values reached $608 billion in 2025, rebounding from $364 billion recorded in 2024.p.44

Key insights

1. European pension funds allocate only 0.01% of their assets under management to venture capital compared to 0.03% by US pension funds, representing an unrealized $210 billion capital opportunity.p.43
2. Over 70% of surveyed founders consider Europe's regulatory operating environment restrictive to business growth.p.31
3. Europe hosts 2.7 million technical or software engineering employees in 2025, growing at an annual rate of 11.2%.p.69
4. Public procurement targeting innovation in Europe stands at 9% since 2021, remaining below the EU target of 20%.p.46
5. Private tech investment in the US reached $177 billion in the first nine months of 2025, whereas Europe recorded $33 billion over the same period.p.39
6. Access to capital is the top driver for relocating founders, cited by over 60% of respondents considering or completing a move.p.89