State of European Tech 2017 Full Report

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In collaboration with
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presents
The State of
European tech
sponsored by
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Atomico & Slush The State of European Tech 2017
Welcome to the third edition of the

State of European Tech Report
Since we began this project in 2015, our ambition has been to build
a rich and nuanced narrative of European technology and how it is
evolving. A multi-layered story, not just a moment in time.
At Atomico, we believe it is only possible to do this based on a

number of data sources and different factors. Which is why we’ve
worked with an incredible set of data partners, surveyed thousands
of people within Europe’s tech ecosystem, and spoken with those at
the heart of it all - to develop meaningful, localised data insights that
tell the real story about what’s happening on the ground.
This year’s findings reveal the state of European tech in 2017 is the
strongest it has ever been. Europe is building a tech ecosystem in
its own image, defined by deep tech expertise, incredible geographic
diversification, and a uniquely collaborative approach with traditional
www.stateofeuropeantech.com
industry. The solid foundations that have been laid - a huge and
deep talent pool, founders with global ambition levels, and a large,
growing and increasingly sophisticated investor base - means that
Europe marches to its own beat. The question of whether Europe can
produce world-class innovation has been put to bed. The question
of whether it can produce a $100Bn company has been put to bed.
And the probability that the next industry-defining company could
come from Europe - and become one of the world’s most valuable
companies - has never been higher.
We hope you enjoy diving into this year’s report, which we believe
is the single, most comprehensive data-driven story of European
technology today.
Tom Wehmeier
Partner and Head of Research, Atomico
2
About this report
We are excited to share the third edition of The State of European

Tech report with you all and hope you will find it to be the singular,
most comprehensive and data-driven portrait of Europe’s technology
ecosystem to date.
As in previous years, we’ve been ambitious about the data partners

we’ve partnered with: teaming up again with LinkedIn, Stack
Overflow, Meetup, Dealroom.co, the London Stock Exchange, Quid,
European Startup Initiative, Signal and Invest Europe, and adding
new partners including the European Investment Fund, Craft.co, and
TokenData.
The strength and integrity of our report relies on being able to draw
meaningful insights from a number of different sources and data
points. With the support of our data partners we have been able
to carefully build the most accurate picture of what is going on in

European tech, right now.
One area we wanted to double down on in 2017 was geographic

diversity, to ensure our report had roots across Europe’s broad and
diverse ecosystem - not just the traditional hubs.
So this year we have worked with a number of strategic distribution

partners to help us delve deep into Europe’s ecosystem. Our survey
was conducted from 6th September - 15th October 2017 and with the
help of our distribution partners we received over 3,500 responses
- including over 1,000 European founders from across the continent.
The survey enabled us to gather thousands of qualitative insights
from those right at the heart of what’s happening on the ground,
across the wide European ecosystem, not just London, Paris and
Berlin but also Reykjavik, Sevilla, Sofia and everywhere in between.
We have also spoken intimately with a select group of over 50

founders, entrepreneurs, investors and policymakers at the cutting
edge of Europe’s technology landscape - capturing their insights
in different sections of the report to bring the hard data to life. In
the process of putting together this report we spoke to José Neves
(Farfetch), Herman Narula (Improbable), Ian Rogers (LVMH), Mounir
Mahjoubi (Macron’s digital minister), Dr Jeannette zu Fürstenberg (La
Famiglia), Ilkka Paananen (Supercell), Urska Srsen (BellaBeat), Antoine
Bordes (Facebook Artificial Intelligence Research - FAIR), Fleur
Perellin (Korelya Capital), Reshma Sohoni (Seedcamp) and Robin Klein
(LocalGlobe) - to name just a few.
As well as the magazine you are now holding in your hands, for
the very first time the report is also being housed on its very own
interactive website where you can explore the data in even more
detail. You can find us on www.stateofeuropeantech.com
3
About Atomico
Atomico invests in disruptive technology

companies with ambitious founders from Series
A onwards.
Our experienced team includes entrepreneurs and executives from
the world’s most successful technology firms who partner with our
companies as they scale to become global winners.
We’re not a traditional venture capital firm. We exist for more

than returns, even though it is our lifeblood. Since we began our

work in 2006, we’ve always set our sights much higher. At our
core, we believe entrepreneurs are the ultimate agents of positive,
transformational change across every aspect of our society and
economy.
To us, our work is our mission. When you spend time with us, you’ll
see that our firm is built by, and for, founders. It’s why we invest from
Series A onwards, because we want to help founders take a product
that works and make it a global success. And it’s why we’ve built
the most experienced team possible, with a clear and systematic
approach, to help founders turn their vision into something that
changes the world for the better.
While we invest globally, our focus is Europe. The strength and

depth of European founders is increasing all the time, and we strive
to help them succeed globally. We believe many of the next truly
transformative companies will come from Europe.
We look for the most ambitious founders, the people who want
to build the next leader in their category or the company that
changes a fundamental component of our economy and society. The
founders who want to use technology to rewire the world in favour of
something better for as many people as possible.
You can find out more by visiting our website, reading our manifesto,
and looking at the companies we invest in - but in the meantime, we
hope you enjoy the State of European Tech Report 2017.
4
About Slush
Slush is a global movement supporting the next
generation of groundbreaking founders.
In 2017, Slush gathered more than 45,000 people in its 75 events all
around the world from South Africa to Tokyo. The non-profit initiative
was established by a group of entrepreneurs in Helsinki in 2008.
Today, the year of Slush culminates every November when 20,000
founders, investors, media and executives from +130 countries gather
in Helsinki.
Despite having grown in just a few years from a 300-person assembly

to a world-renown event, the philosophy has remained the same:

supporting world-conquering founders.
Photo: Samuli Pentti 5

Data Partners
Supported by data from our

amazing partners
Distribution Partners
Powered by Europe’s
startup community
6
Interviewees
We gathered insights from over 50 people across

sectors, across Europe
Alex Stubb Andreas Saari Alastair Band Angus Maidment Antoine Bordes
VP & Member of the Co-Founder & CEO Co-Founder Co-Founder Research Lead
Management Committee Wave Ventures Blockchain Beginners Blockchain Beginners Facebook Artificial
EIB Intelligence Research
(FAIR)
Barnaby Hussey-Yeo Benjamin Lickfett Ben Pugh Brent Hoberman Stefano Bernardi
Co-Founder & CEO Head of Technology & CEO Executive Chairman; Co-Founder
Cleo Innovation Farmdrop Founders Factory, Token Economy
Diageo Founders Forum,
firstminute capitalv
Christopher Grew Dan Hynes Daniel Wiegand David Kelnar Ella Goldner
Partner Partner & Head of Talent Co-Founder & CEO Investment Director & Founding Partner &
Orrick Atomico Lilium Aviation Head of Research General Manager
MMC Ventures Zinc VC
Erik Engellau-Nillson Fleur Pellerin George Danezis Dr. Jeannette zu Jimmy Wales
CEO CEO & Founder Professor of Security Fürstenberg Founder
Norrsken Foundation Korelya Capita and Privacy Engineering, Managing Partner Wikipedia, WikiTribune
University College La Famiglia
London
Jan Erik Solem José Neves Juan Urdiales Jutta Steiner Kati Levoranta
CEO & Co-Founder Founder & CEO Co-Founder & Co-CEO Founder CEO
Mapillary Farfetch Jobandtalent Parity Technologies Rovio
7
Kristel Kruustük Lenard Koschwitz Luciana Lixandru Michael Collins Mounir Mahjoubi
Founder & CEO Director for European Partner CEO French Secretary of State
Testlio Affairs Accel Invest Europe in charge of Digital Affairs
Allied for Startups
Neil Murray Niklas Zennström Oscar Farres Remo Gerber Reshma Sohoni
Angel Investor CEO & Founding Partner Head of Unit, Investments Chief Commercial Officer Founding Partner
The Nordic Web Atomico Technology & Innovation Lilium Aviation Seedcamp
EIF
Robin Klein Samuel Mueller Sean Bave Stephen Lowery Timo Rein
General Partner CEO and Co-Founder General Manager Managing Director Co-Founder
LocalGlobe Scandit Stack Overflow Talent Silicon Valley Bank UK Pipedrive
Urska Srsen Xavier Niel Yannick Roux Mattias Ljungman Hiro Tamura
CPO & Co-Founder Entrepreneur General Partner Atomico Atomico
BellaBeat Station F First Matter Partner Partner
Carolina Brochado, José del Barrio Elina Berglund Marianne Vikkula Nikhil Rathi
Atomico Founding Partner Scherwitzl CEO CEO
Partner Samaipata Ventures CTO & Co-Founder Slush London Stock Exchange
Natural Cycles PLC
Romain Lavault
General Partner
Partech Ventures
8
A word from Orrick
As a law firm, Orrick focuses on

the tech industry and technology
entrepreneurs.
As a firm originating out of Silicon Valley which has We’re talking not just early stage and venture
expanded into Europe, with offices in Germany, funds but the growth funds, late stage funds and
France, UK and Italy, our pan-European footprint Softbanks of the world.
reflects our belief that Europe is an important
geographical area for the technology industry. We The times are-a-changing. Traditionally, European
also feel well placed to comment on the trends companies looking to be acquired have looked
driving the technology ecosystem in Europe. to Silicon Valley for their salvation. Today,
they’re looking to the US as a destination to
We believe we have a role in the ecosystem but acquire, demonstrate their success or to expand
to play a full role you need to make sure you fully internationally.
understand the environment in which you operate.
That is why we support the publication of the What is most interesting to us as a law firm
State of European Tech report, now in its third year is the changing regulatory landscape. Yes, you
providing a complete analysis of European tech to will see in the Regulation section of the report
entrepreneurs, VCs, governments, law firms like that more needs to be done by governments to
ours, students and other stakeholders. incentivise the development of new technologies
such as drones, autonomous vehicles and crypto
Whilst Europe can be viewed as fragmented on currencies. At the same time we are starting
a country-by-country basis with a plethora of to see the green shoots of regulatory maturity.
different languages, there are certain strengths to The government in Sweden is allowing for the
celebrate across the continent. reimbursement of mobile-only doctor services,
the Estonian government is enabling delivery
Europe has historically played a pioneering role in robots to use the country’s sidewalks, the UK is a
the technology industry: a world leader in areas cheerleader for new open banking rules whilst the
such as mobile and fintech, where Europe has been Swiss government is embracing the potential of
well-advanced and way ahead of Silicon Valley and crypto currencies.
the US as a whole. Europe also outnumbers the US
for programming talent, and we believe it is going We’re thrilled to be involved with the State of
to continue to succeed on the global stage, as it European Tech report this year, contributing to one
doubles down on the advances it is already making of the most nuanced and data-driven portrayals of
in AI, cryptocurrencies and deep tech. what’s happening in European technology today.
As evidenced in the pages of this report European
This report makes it clear the funding environment technology has undoubtedly had a breakthrough
for European technology companies is still very year but what excites us the most are the
healthy and the appetite for investments in opportunities that lie ahead.
European technology companies is unsurpassed.
Christopher Grew
Partner, Technology Companies Group
Orrick
9
0
REPORT PARTNER
About Orrick Orrick is a global law firm focused on serving the

technology, energy & infrastructure and finance sectors.
Structured as one team, our lawyers work across 25+
markets in Europe, the United States, Asia and Africa.
Orrick counsels more than 1,800 tech companies, as well as the most
active funds, corporate venture investors and public tech companies
worldwide. Our focus is on helping disruptive companies tap into
innovative legal solutions. We are a top 10 law firm for global M&A
volume (MergerMarket) and the #1 most active law firm in European
venture capital, and M&A exits (Pitchbook). We offer holistic solutions
for companies at all stages, executing strategic transactions but also
protecting intellectual property, managing cybersecurity, leveraging
data and resolving disputes. We are helping our clients navigate the
regulatory challenges raised by new technologies such as crypto
currencies, autonomous vehicles and drones. A leader in traditional
finance, we work with the pioneers of marketplace lending. We
innovate not only in our legal advice but also in the way we deliver
legal services, earning us the #1 spot on Financial Times’ list of the
most innovative law firms in North America in 2016.
REPORT PARTNER
About For more than 30 years, Silicon Valley Bank (SVB) has
helped innovative businesses, enterprises and their
Silicon Valley Bank investors move bold ideas forward, fast.
SVB provides a range of targeted financial services and expertise

through its office in the UK. With commercial and international
banking services, SVB helps address the unique needs of innovators.
The UK’s leading technology and life science businesses, in all stages
of development, look to SVB’s niche expertise, 30 years of experience
and unparalleled network, as they grow at home and tackle new
markets abroad. Learn more at svb.com/uk
DESIGN
Studio Lovelock are a digital design studio in South

About East London powered by a love of ambitious ideas and
Studio Lovelock distinctive design.
Since 2012 they’ve been helping exciting brands grow, engage and
delight their audiences. They collaborate on charismatic design that
cuts through the noise, makes an authentic connection, and takes
their clients branded communication to the next level.
Their team brings experience, intelligence and a playful enthusiasm

to each and every design brief. They focus on brand identity,
websites, animation and social media content.
Visit www.studiolovelock.com to view their portfolio.
10
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Evolving Europe 2328

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A lot has happened since last year’s report

Emmanuel Macron is the new President in France, the Eurozone
posted a second solid quarter of growth and continuing Brexit
negotiations dominate the news in both the UK and occasionally
across the continent.
Macro political and economic upheavals are to be expected. The

question we explore in these pages is, to what degree is the tech
world immune to these developments - and could it be entering bear
territory?
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2.1
It’s been a big year for European tech
A year marked by a number of

hugely important milestones for
European tech
UK's Ve Interactive goes France's Zenly acquired
into administration for $213M by Snap
UK's Prodigy Finance UK-based DeepMind
Spain's Social Point Romania's UIPath raises Germany's Delivery Hero announces $200M in introduces AlphaGo Zero
acquired for $267M by largest ever Series A raises $1.1B at IPO equity and debt funding, using novel form of
Take-Two ($30M) from Accel led by Index Ventures reinforcement learning
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV
Slovenian games compa- The UK triggers Article 50 Election of Emmanuel Germany's Soundcloud Germany's Lilium raises The UK's Transferwise
ny Outfit7 acquired for to formally start the Macron injects huge lays off 40% of staff, but $90M Series B from raises $280M Series E
$1.1B Brexit process optimism into La French European tech industry Tencent
Tech rallies around
The UK's Funding Circle Picnic raises €100M Finland's Rovio IPOs for
raises $100M Series D Series B in the Nether- Official launch of London Tezos raises $232M in a $1B
lands HQ'd Softbank Vision then landmark ICO
Fund and investment of
The UK's Deliveroo raises
$500M into the UK's
$385M Series F
Improbable
Spain's Cabify raises

$100M Series D
22/11/2017 The State of European Tech 2017
TitleNo: 2.1 GroupName: Default GroupId: 679 ChartId: 222 ArticleId: 42 ChapterId: 10
Europe's tech industry is creating jobs faster than the rest of the
European economy
Europe’s tech industry is Tech industry workforce growth versus forecast EU employment
Tech industry workforce growth, 2017 versus 2016
creating jobs faster than the rest growth, 2017 versus 2016
of the European economy
2.6
2.5
2.1
2
% growth YoY
1.5
Note:
Based on an analysis of sample pool of
LinkedIn members and the difference between 0.5
those in Oct 2016 working in the Tech Sector
in each country from this sample pool and
those in Oct 2017 0
2017 2016
Source:
LinkedIn Tech workforce growth YoY
Note: Based on an analysis of sample pool of LinkedIn members and the difference between those in Oct 2016 working in
the Tech Sector in each country from this sample pool and those in Oct 2017
3x
Source: LinkedIn
Europe’s tech workforce

is growing significantly
faster than overall EU
employment year-on-year growth in European
tech worker population in 2017,
compared to just 0.8% growth
in overall EU employment in
2017, according to the European
Commission’s latest economic
forecast for Winter 2017
12
2.1
It’s been a busy year for European tech
Of course Europe is a fantastic place to start and grow a company. Just look at
companies like Spotify, Skype, TransferWise, or BlaBlaCar: they are European unicorns.
The biggest startup events take place in Europe, the level of capital available has
skyrocketed in the past years. Europe is made of tens of different cultures, it’s our
biggest advantage. The more diversity you can find among entrepreneurs, the more you
will find innovative businesses, creativity, and value created.
Xavier Niel
Station F
Europe’s fastest-growing tech worker populations For additional context, it is worth analysing a
are growing at an even faster rate similar dataset covering tech talent movement in
2016 provided by LinkedIn for last year’s State of
European Tech

Top 10 fastest-growing tech worker populations

Top
For 10 fastest-growing
additional context, it is worthtech worker
analysing populations
a similar dataset covering
Europe's
of 2017fastest-growing tech worker populations are growing at an tech talent movement in 2016 provided by LinkedIn for last year's State
of 2016
even faster rate of European Tech
Top 10 fastest-growing tech worker populations of 2017 Top 10 fastest-growing tech worker populations of 2016
Ireland 5.3 Ireland 5.5
Netherlands 4.6 Germany 3.3
Germany 4.2 United Kingdom 3
Switzerland 4 Netherlands 3
France 3.6 Poland 2.7
Czech Republic 3.3 France 2.5
United Kingdom 3.2 Switzerland 2.5
Austria 2.8 Czech Republic 2.5
Norway 2.8 Belgium 2.3
Portugal 2.7 Romania 1.7
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 0 1 2 3 4 5 6

% growth YoY % growth YoY
2017 2016
Note:
Note: Based on an analysis of sample pool of LinkedIn members and the difference between those in Oct 2016 working in Note: Based on an analysis of sample pool of LinkedIn members and the difference between those in 2016 working in the
the Tech Sector in each country from this sample pool and those in Oct 2017. BasedTech onSector
an inanalysis
each countryof
fromsample
this samplepool
pool andof LinkedIn
those in 2015 members and the
difference between those in Oct 2016 working in the Tech Sector in each
Source: LinkedIn
country from this sample pool and those in Oct 2017.
Source: LinkedIn
Source:
LinkedIn
http://preview.stateofeuropeantech.com/all-charts/ 4/254
13
2.2
Europe has a strong sense of optimism
about the future of its tech ecosystem
TitleNo: 2.3 GroupName: Geography GroupId: 690 ChartId: 226 ArticleId: 43 ChapterId: 10
While there are notable While there

Are you areor
more notable differences
less optimistic across
about thecountries,
future ofEurope as a tech
European whole
differences across countries, demonstrates bullishness about the
today than you were 12 months ago? future of its tech ecosystem
Europe as a whole demonstrates Are you more or less optimistic about the future of European tech today than you were 12
Geography
bullishness about the future of months ago?
its tech ecosystem 75
70
58 58
56 55 55
% of respondents 54
50
42 41 42
39 38 37 37
32
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25
18
10 9
5 5 6 6
2
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While there are
More
demonstrates notable differences
About the same Less
bullishness across
about the countries,
future Europe
of its tech as a whole
ecosystem
demonstrates bullishness about the future of its tech ecosystem
Are you more or less optimistic about the future of European tech today than you were 12
of European founders are either Are you more
months
Source:
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ago?
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European about
Tech Survey 2017 the future of European tech today than you were 12
more optimistic about the future months ago?

of European tech, or maintain 54
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36 36 36 36 36 41 36
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Source: The State of European Tech Survey 2017
countries
I was optimistic about European tech 12 months ago, and feel just
as positive about the state of European tech today. The ecosystem
is constantly evolving, and its momentum is accelerating. You can
find world-class levels of ambition, innovation and disruption across
the continent in more established tech hubs like London, Paris and
Stockholm, as well as in emerging hubs like Amsterdam or Barcelona.
Luciana Lixandru
Accel
14
2.2
Europe has a strong sense of optimism

about the future of its tech ecosystem
It is absolutely easier to build a European tech company today than it

was five years ago. If you look at the mobile games business or where
mobile is a platform, the app store distribution model has completely
democratised distribution, there are things like cloud technologies
that make it easier than ever to scale your service. What it really
means is that great companies today can come from any country and
it is way easier than it was five or ten years ago.
Ilkka Paananen
Supercell
Photo: Jussi Hellsten 15

2.3
Europe’s tech ecosystem is feeling the impact -
positive and negative - of macro events
Europe's tech community views the UK's triggering of Article 50 as the

Europe’s tech community views Which event of the past 12 months has had the most material impact
most material event of the past 12 months
the UK’s triggering of Article 50 - positive or negative - on Europe’s tech ecosystem?
as the most material event of Which event of the past 12 months has had the most material impact - positive or negative
- on Europe's tech ecosystem?
the past 12 months Geography
75
71
% of respondents 49 51 52
50 44 46
38 38
31
25 24 26
25 21
19
13 9 13 15 15 12
11 11 12
9 9 10 9 11 99
57 6 10 6
4
11 4
4 2 5 7 6 4 4
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UK triggering Article 50 to start the process of exiting the EU
Emergence of Initial Coin Offerings (ICOs) as a new way to raise capital Election of Donald Trump
Europe's tech community views the UK's triggering of Article 50 as the
Election of Emmanuel Macron Investment activities of the European Investment Fund (EIF)
Launch of SoftBank Vision Fund
most material event of the past 12 months
Which event of the past 12 months has had the most material impact - positive or negative
- Note:
on Europe's
Numberstech ecosystem?
Occupation may not add to 100 due to rounding

67 57 60 57
% of respondents
54
49
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16 15 18 16
12 15 16 15 11
11 14 12 11 12 11 14 1113
108 8 8 7 75 9 8 6 8
4 5 6 54 3 3 54
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UK triggering Article 50 to start the process of exiting the EU

Emergence of Initial Coin Offerings (ICOs) as a new way to raise capital Election of Donald Trump
Election of Emmanuel Macron Investment activities of the European Investment Fund (EIF)
Launch of SoftBank Vision Fund
Note: Numbers may not add to 100 due to rounding

Compared to 12 months ago, I have actually got less excited about

European tech and the European tech scene. “Less excited” is maybe
not right the word… “more pessimistic.” I am deeply concerned about
- frankly - the train wreck of Brexit. I am afraid of it spiralling out of
control.
Jimmy Wales
WikiTribune & Wikipedia
16
2.3
Europe’s tech ecosystem is feeling the impact

- positive and negative - of macro events
More than any other event, the

Brexit process is singled out for
its impact on the European tech
ecosystem
52%
of survey respondents cited the
triggering of Article 50 as the
most material event to have
impacted the European tech
industry in the past 12 months
Europe’s tech community is How, if at all, has the UK triggering Article 50 to start the Brexit
feeling the impact of Brexit in process impacted your company?
different ways
TitleNo: 2.3 GroupName: n/a GroupId: n/a ChartId: n/a (chartImage) ArticleId: 44
ChapterId: 10
Europe's tech community is feeling the impact of Brexit in different ways

How, if at all, has the UK triggering Article 50 to start the Brexit process impacted your
company?
Text Analytics Background:

Quid reads any text to identify keywords,
phrases, people, companies and institutions.
Quid then compares words from each
document to create links between them based
on similar language. Quid repeats the process
at immense scale, producing a network that
shows how similar all the documents are to
one another.
How to Read a Network:

Similar nodes cluster together, and clusters
are grouped by color. Each node represents
a written response. Connections represent
similar language used across nodes. Centrally
located nodes are core concepts in the
network and share language with many other
nodes, while peripheral clusters represent
Note: Respondents that selected 'the UK triggering Article 50 to start the process of exiting the EU' only
more outsider takes on the topic. The density
of a cluster indicates how similar or diverse the
nodes are within it. Source: Quid, The State of European Tech Survey 2017
17
2.3


The ongoing uncertainty caused How, if at all, has the UK triggering Article 50 impacted your
by the Brexit vote and exit The ongoing uncertainty caused by the Brexit vote and exit process is
company?
process is impacting hiring, impacting hiring, fundraising and office location decisions
fundraising and office location How, if at all, has the UK triggering Article 50 impacted your company?
Geography
decisions
24
Talent and hiring
9
1578
2328 6335
21
Investment and fundraising
2328 17
5328
3453 17
Heightened uncertainty or risk
8
Attractiveness and ease of doing 9

business in or with UK
7
2328 Attractiveness of rest of Europe for 9

relocation of HQs and staff
2328 17
2
General ecosystem
3
18
No impact
38
22/11/2017 0 5 The
10State of European
15 Tech 20
2017 25 30 35 40
% of respondents
TitleNo: 2.4 GroupName: Founders GroupId: 754 ChartId: 51 ArticleId: 44 ChapterId: 10

UK Non-UK
The ongoing uncertainty caused by the Brexit vote and exit process is
impacting hiring, fundraising and office location decisions
Note: Respondents that selected 'UK triggering Article 50 to start the process of exiting the EU' only. Numbers may not add
Founders
How, if at all,due
to 100 has the UK triggering Article 50 impacted your company?
to rounding
Source: Quid, The State of European Tech Survey 2017
30
Talent and hiring
9
23
Investment and fundraising
http://preview.stateofeuropeantech.com/all-charts/ 14 12/241
18
Heightened uncertainty or risk
7
Attractiveness and ease of doing 10

business in or with UK
11
Attractiveness of rest of Europe for 10

relocation of HQs and staff
21
1
General ecosystem
2
Note:
8
Respondents that selected ‘UK triggering No impact
Article 50 to start the process of exiting the 35
EU’ only. Numbers may not add to 100 due to
rounding 0 5 10 15 20 25 30 35
% of respondents
Source:
Dealroom.co Quid, The State of European Tech UK founders Non-UK founders
Survey 2017
Note: Respondents that selected 'UK triggering Article 50 to start the process of exiting the EU' only. Numbers may not add
to 100 due to rounding
18
2.3

Meanwhile, in France, Macron's electoral victory has injected huge

optimism into the French ecosystem, creating a renewed sense of
Meanwhile, in France, Macron’s entrepreneurial spirit
How, if at all, has the election of Emmanuel Macron impacted your 1578
electoral victory has injected company?

How, if at all, has the election of Emmanuel Macron 2328
impacted your 6335
company?
huge optimism into the French
ecosystem, creating a renewed
2328
Optimism and confidence in France and

25
sense of entrepreneurial spirit
5328
Europe
3453
Impact on French tech ecosystem 22
Increased opportunities 8
Injecting entrepreneurial spirit 8 2328
2328
No impact 37
0 5 10 15 20 25 30 35 40
% of respondents
% of respondents choosing 'Election of Macron'
Note: Respondents that selected 'the election of Emmanual Macron' only

There was a lot of self-bashing in France, lots of people saying that

“it is much better in the West - especially in the tech ecosystem, it
is much better in Silicon Valley, it is better in London, and so on.” We
were kind of self-hating on ourselves. I thought it was a generation
thing, and it would take a long time to make that shift. But that
happened overnight with Macron being elected. The day after he got
elected there was no-one complaining in France, there was a new
burst of positivity in the country.
Romain Lavault
Partech Ventures
5493
6335
2328
2328
45,023
19
2.3

These events have had a significant impact on the perception of

These events have had a In your opinion, is it easier or harder to raise venture capital in
founders and investors. The UK is the only country in Europe where more
significant impact on the Europe than it was 12 months ago?
founders think it's got harder to raise capital compared to 12 months ago
perception of founders and
investors. The UK is the only In your opinion, is it easier or harder to raise venture capital in Europe than it was 12
months ago?
country in Europe where more Geography
founders think it’s got harder
60
to raise capital compared to 12 60
months ago
49
44 45
% of respondents
40 40 39
40 38
36
32 32 32
27 27 27
23 23 22 21
20 18
14

0
UK & Ireland France & DACH Nordics Baltics Southern Central &
TitleNo: 2.4 GroupName: Occupation GroupId: 581 ChartId: 183 ArticleId:
Benelux Europe44 ChapterId: 10
Eastern Europe
These eventsHarder
Easier have had athe
About significant
same impact on the perception of
founders and investors. The UK is the only country in Europe where more
founders think it's got harder to raise capital compared to 12 months ago
Note: This question was answered by Founders and Investors only. Numbers may not add to 100 due to rounding
In your opinion, is it easier or harder to raise venture capital in Europe than it was 12
Occupation
months ago?
50
47
40
40
37
34
% of respondents
30
27
20
17
10
0
Founder Investor
Easier Harder About the same

3453
Note: This question was answered by Founders and Investors only. Numbers may not add to 100 due to rounding
5328
1578
2328
2328

6335
2328
20
2.4
Europe is entering a new age of entrepreneurship
where technology is used to address the world’s
biggest societal challenges 22/11/2017 The State of European Tech 2017
There is strong agreement across Europe that the region's technology

1578
There is strong agreement entrepreneurs will play a

European technology critical role inwill
entrepreneurs helping to tackle
do more major societal
to address societal 2328 6335
across Europe that the region’s issues, such as

challenges climate
in the nextchange,
decadefoodthansustainability and access to
European governments 2328
technology entrepreneurs will healthcare 5328
play a critical role in helping to European technology entrepreneurs will3453

do more to address societal challenges in the next
tackle major societal issues, decade than European governments
Occupation
such as climate change, food
59
sustainability and access to 55 55
57 57
54
healthcare 50 47
% of respondents
43
2328
25
2328
7
5 5 4 5 5 4
2
0
er
h)
ee
t
)
r
or
ee
co
en
de
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th
st
oy
oy
ud
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ve
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pl
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on
te
In
em
em
(n
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ee
tu
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oy
(p
ar
se
St
pl
ee
ic
em
oy
bl
pl
Pu
ny
em
pa
m
ny
Co
pa
m
There is strong agreement across Europe that the region's technology

Co
entrepreneurs will play a critical role in helping to tackle major societal

issues, such
% Strongly as climate
agree change,
% Strongly disagree food sustainability and access to
healthcare
European technology entrepreneurs will do more to address societal challenges in the next
Note: 'Strongly agree' is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is
Geography
decade than European
composed of foundersgovernments
answering 1 or 2 on the same scale
Source: The State of European Tech Survey 2017 61

60 58
56 56 56
54
47 47
% of respondents
40
20
9
7
4 4 5
3 3 3
0
H
cs
pe
pe
pe
d
ic
lu
an
AC
di
ro
ro
ro
lt
ne
el
or
D
Ba
Eu
Eu
Eu
Be
Ir
N
&
rn
n
&
er
K
he
ce
U
st
ut
an
Ea
So
Fr
&
al
tr
en
C
% Strongly agree % Strongly disagree
Note: 'Strongly agree' is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is
5493 composed of founders answering 1 or 2 on the same scale

5
2328
2328
21
2.4
Europe is entering a new age of

entrepreneurship where technology is used to
address the world’s biggest societal challenges
Today’s generation are looking for a higher purpose: something

more than simply earning their living - I think this generation will
play a much bigger role over the next decade, as they’ve grown up
in a world where entrepreneurship is extremely powerful and when
directed in the right way it can solve big and complex problems.
Daniel Wiegand
Lilium Aviaton
Europe believes that its

tech entrepreneurs will
play an important role
55%
of respondents strongly agree
in tackling issues such
that European entrepreneurs
as climate change, food will have a bigger impact on
sustainability and access solving major global issues than
to healthcare European governments
To tackle the big issues in societies - social mobility, mental health,

lifelong learning, the problems of ageing, and so on - entrepreneurs
need to ignore the silos in which current solutions operate. The
reality is that more money is being injected into the current systems,
but the problems just keep growing. New solutions need to empower
individuals to sort these issues out for themselves. Why keep waiting
for others to sort it out for us? Europe has 500m consumers who
will buy solutions to these issues if tech entrepreneurs can create
attractive and effective products, rather than relying on existing
systems to do that.
Ella Goldner
Zinc VC
Increasingly, citizens turn to science and technology to obtain an

answer for mitigating climate change, improving citizens’ health or
enhancing energy and resource efficiency. This is something that
Finnish, Nordic and European companies are among the best in the
world at. One example of that is the rising trend of biohacking where
close monitoring of yourself through tech leads to changes in your
living habits. Done right, this may be a good road to healthier and
longer working life and thereafter healthier ageing, and thus create a
meaningful impact.
Kati Levoranta
Rovio
22
2.4

entrepreneurship where technology is used to TitleNo: 2.5 GroupName: Default GroupId: 147 ChartId: 46 ArticleId: 45 ChapterId: 10
address the world’s biggest societal challenges
The potential social and ethical impact of investments is playing an
increasingly significant role in the decisions made by angel investors and
VCs
The likely social and ethical impact of a company plays a significant role in my decision to
The potential social and ethical The likely social and ethical impact of a company plays a significant
invest
impact of investments is playing role in my decision to invest
an increasingly significant role
43
in the decisions made by angel
investors and VCs 40 39
% of respondents
30
27
20
14
11
10
0
Angel investor Other investor Venture capitalist
Strongly agree Strongly disagree
Note: Strongly agree is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is composed
of founders answering 1 or 2 on the same scale
I think we in Europe are very well-suited to producing the founders

that are going to solve some of the biggest challenges. This is thanks
to more and more investors who are willing to back some super
ambitious teams and plans, but we are also starting to see more
entrepreneurs who are willing to move into that space, inspired by
the example set by other European entrepreneurs.
Andreas Saari
Wave Ventures
Europe’s angel investors

demonstrate a strong social
and ethical consciousness
43%
of European angel investors
strongly agree that the potential
social and ethical impact of their
investments plays a significant
role in their decision to invest
23
2.4

entrepreneurship where technology is
used to address the world’s biggest
societal challenges
The only limit to the impact we can have is our own imagination and
commitment. At Norrsken, we’re aiming to enable impact unicorns,
companies positively influencing more than one billion people. We
are already seeing incredible solutions being developed in Europe,
and the beauty of technology is that if they are successful they can
scale globally, quickly.
Erik Engellau-Nilsson
Norrsken Foundation
It’s not surprising then that Selected European tech companies with a strong focus on solving a
European entrepreneurs that are major global societal challenge
taking on the world’s biggest

problems are now raising from
the region’s leading VCs
Photo: Jussi Ratilainen 24

2.5
European tech continues to diversify geographically,
driving cross-border investment activity

For the past two years, European VCs have made around 1,000
investments per year in countries outside their home market
For the past two years, European Number
Number of non-domestic
of non-domestic European European investments
investments by European VCs by European VCs
VCs have made around 1,000
investments per year in 1,025
Number of non-domestic European investments by

980
countries outside their home 1000
market
763
750
European VCs
535
500
There is a huge level of 378
cross-border investment activity 326
by European VCs 250
33% 0
2012 2013
Number of investments made outside

2014 2015 2016 2017
of investments made by
European VCs are into

companies based in countries Note: Non-domestic investments refer to investments made by VCs in European countries other than their domestic
outside of the VC’s domestic (home) market. 2017 based on 9M to September 2017 and projection for Q4 based on Q3
market Source: Dealroom.co
We continue to see smaller ecosystems develop across Europe but there is certainly a Carolina
long way to go -- which presents us with great untapped opportunity. While countries Brochado
like Spain are on fire with multiple new startups, nice exits and ambitious teams, its Atomico
neighbour Portugal is still coming up the curve and Italy, despite its $1.85T GDP, has
not yet been able to generate a venture ecosystem commensurate to its potential. It is
encouraging that more funds are willing to invest further from home so that founders
in less well known tech scenes, who might have been overlooked a few years ago, can
now access best-in-class expertise and the global capital necessary to scale.
This is unsurprising, as European VCs are increasingly seeing attractive

opportunities outside their traditional footprint
This is unsurprising, as European Asanan
As investor,
investor, high-quality
high-quality investmentinvestment opportunities
opportunities are are increasingly
increasingly opening up in
VCs are increasingly seeing openingareas
European up outside
in European areas
of our typical outside
geographic of our typical geographic focus
focus
attractive opportunities outside http://preview.stateofeuropeantech.com/all-charts/ 21/241
their traditional footprint 41

40
36
35
30
% of respondents
20
Note: 10
Investor respondents only. Strongly agree is
5
composed of respondents answering 6 or 7 4
2
on a 7-point Likert scale. Strongly disagree is
composed of founders answering 1 or 2 on the 0
Venture capitalist Angel investor Other investor
same scale
Source: Strongly agree Strongly disagree

The State of European Tech Survey 2017
Note:
25
Investor respondents only. Strongly agree is composed of respondents answering 6 or 7 on a 7-point Likert scale.
Strongly disagree is composed of founders answering 1 or 2 on the same scale
2.6
The perception and the reality around gender 22/11/2017 The State of European Tech 2017
diversity in European tech are not aligned TitleNo: 2.1 GroupName: Default GroupId: 385 ChartId: 125 ArticleId: 75 ChapterId: 10
The gender diversity reality is that women make up just 9% of CxO

positions at venture-backed European startups, including just 2% of
CTOs and only 6% of CEOs
The gender diversity reality is Gender
Gender composition
composition by for
by job title jobExecutive-level
title for Executive-level positions
positions of selected Europeanof
Series A
that women make up just 9% of selected
and European
B venture-backed Series A and B venture-backed companies
companies
CxO positions at venture-backed
European startups, including just
2% of CTOs and only 6% of CEOs Chief Technology Officer 98 2
Chief Executive Officer 94 6
Chief Operating Officer 91 9
Chief Financial Officer 86 14
Chief Strategy Officer 86 14

Chief Product Officer 85 15
Chief Commercial Officer 81 19
Note:
Based on a sample of 1,400 executives in Chief Marketing Officer 77 23
CxO positions at 500+ European VC-backed
tech companies that have raised a Series A
or B round between 1 January 2016 and 30 0 20 40 60 80 100
September 2017 and have raised >$5M in total. % of executives
Source: Female Male

Craft.co
Note: Based on a sample of 1,400 executives in CxO positions at 500+ European VC-backed tech companies that have
TitleNo: 2.1a Series
raised GroupName: Default
A or B round GroupId:
between 387and
1 January 2016 ChartId: 126 2017
30 September ArticleId: 75 ChapterId:
and have raised >$5M in total. 10
This
Source:huge
Craft.counderrepresentation of women is also evident in the European
venture capital industry, where just 13% of decision-makers are women

This huge underrepresentation GenderGender
compositioncomposition
of UK ventureof UK industry
capital venture capital industry
of women is also evident in
the European venture capital
industry, where just 13% of UK workforce 53 47
decision-makers are women
VC employees 73 27
VC investment teams 82 18
Note:
Based on a sample of 1,400 executives in VC decision-makers 87 13
CxO positions at 500+ European VC-backed
tech companies that have raised a Series A
or B round between 1 January 2016 and 30 0 10 20 30 40 50 60 70 80 90 100 110
September 2017 and have raised >$5M in total. % of employees
Source: Female Male

Diversity VC
Note: Based on a sample of 1,400 executives in CxO positions at 500+ European VC-backed tech companies that have
raised a Series A or B round between 1 January 2016 and 30 September 2017 and have raised >$5M in total.
Source: Diversity VC
26
2.6
The perception and the reality

around gender diversity in European
tech are aligned 22/11/2017 The State of European Tech 2017
TitleNo: 2.1 GroupName: Gender GroupId: 573 ChartId: 181 ArticleId: 75 ChapterId: 10
But the tech community's perception tells a different story. The

But the tech community’s overwhelming majority
Gender diversity stronglyreflected
is positively agree that
ingender diversity employee
my company’s is positively
perception tells a different story. reflected in employee composition
composition and hiring
The overwhelming majority Gender diversity is positively reflected in my company's employee composition and hiring
Gender
strongly agree that gender
diversity is positively reflected in 60
60
employee composition
52
% of respondents
40
20

3 3
0
Male
TitleNo: 2.1 GroupName: Occupation Female
GroupId: 575 ChartId: 181 ArticleId: 75 ChapterId: 10
But the tech

Strongly agree community's
Strongly disagreeperception tells a different story. The
overwhelming majority strongly agree that gender diversity is positively

reflected in employee composition

Diversity
Gender diversity is positively reflected in my company's employee composition and hiring
60 59
50
48
% of respondents
40
20
4 5
3
0
Founder Startup employee Venture capitalist
If I look at diversity from an Estonian perspective, we still have a

long way to go. We still don’t have enough girls going to STEM fields,
they do not go to learn programming because there are still these
stereotypes as if ICT were only for guys with long hair in ponytails.
These stereotypes are still very strong. In that sense, the US is so much
bigger than us and are a bit ahead in that they can hire very specific
people into their companies who are responsible for building a diverse
culture and setting up company diversity policies. This is not something
we have adopted yet or at least I have not seen it happening as much.
Kristel Kruustük
Testlio
27
03
1578
2328 6335
2328
5328
3453
Talent 2328
2328
Every founder will tell you that talent is the

lifeblood of their company and their sector
as a whole
Technology is no different.
The key questions are how strong is the tech talent pipeline in
Europe, how concentrated is it and how competitive is it getting?
5493
6335
2328
2328
45,023
3.1
Europe’s tech ecosystem is fed by a
strong pipeline of world-class talent
Europe is home to half of the top Global ranking of top-rated European computer
10 computer science institutions science institutions
in the world
Europe is a leading source

of doctoral-level technical
talent
2x
more PhDs in STEM subjects
graduate from European
Source: Times Higher Education World University Rankings for Computer Science 2017-2018.co
universities than from those in
the US
Europe is an amazing place to be a founder. There are so many

incredible academic institutions across the continent with such
a wealth of talent pouring out of them and producing amazing
engineers; incredible market to go and build within. Europe is just a
great place to build a team.
Herman Narula
Improbable
The pipeline of advanced research graduates in STEM fields has been

The pipeline of advanced growing
Numberconsistently
of doctoralsince 2000 in STEM fields per year by region
graduates
research graduates in STEM Talent - Number of doctoral graduates in STEM fields per year by region
fields has been growing
consistently since 2000 60k 56,419
58,941
53,168
50,935
48,844
50k 46,899 47,134
Number of doctoral graduates
45,601 46,479
42,165
39,691
40k 37,626
36,107 35,986
32,913
28,328
30k 26,959
25,783
23,901 24,792
22,447 23,146 23,322
20,645
18,767
20k 16,287
16,098 15,393 16,249
13,365
10k
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Europe US
Source: OECD
29
3.1
Europe’s tech ecosystem is fed by a strong

pipeline of world-class talent
European technical talent

is complemented by a
hungry pool of commercial- I think the job that European policymakers have in relation to
minded talent fostering entrepreneurship is primarily in building the ambition and
doing so by focusing education in the STEM subjects - we have great
1 in 5
universities, we need to encourage more of our graduates to study
science, technology, engineering and maths, particularly female ones,
where we have a big opportunity to increase the quality and breadth
of the pool of available talent.
graduates of MBA programmes
from Europe’s leading business Robin Klein
schools are entering the tech LocalGlobe
industry
Graduates from Europe's leading MBA programmes continue to join the

tech industry at scale
Graduates from Europe’s leading % of MBA graduates entering tech industry from selected leading
% of MBA graduates entering tech industry from selected leading European business
MBA programmes continue to European business schools
schools
join the tech industry at scale
% of MBA graduates entering
25 23
22
21 21
20 20 20
20 19 19 19 19
17 17
16 16
tech
10
0
ol
SE
AD
ris
d)
e
ol
ge
ag
ho
ho
or
Pa
IE
SE
id
er
xf
Sc
Sc
br
IN
Av
EC
(O
am
ss
ss
H
ol
ne
ne
(C
ho
si
si
ol
Sc
Bu
Bu
ho
ss
on
IE
Sc
ne
nd
ss
si
Lo
ne
Bu
si
id
Bu
Sa
e
dg
Ju
Class of 2016 Class of 2015
Source: Business School MBA Graduate Employment Reports
While Europe has always had strong technical talent from world-
class universities in cities like Munich, Paris and Stockholm,
we’re now seeing entrepreneurs with an innovation mindset and
commercial DNA as well.
Luciana Lixandru
Accel
30
3.2
Europe’s tech workforce and
developer population is booming
TitleNo: 3.3 GroupName: Top 10 GroupId: 565 ChartId: 179 ArticleId: 49 ChapterId: 11
There has been rapid growth in the size of the professional developer
There has been rapid growth Number of professional developers by country
populations in most European countries
in the size of the professional
developer populations in most Number
Top 10 of professional developers by country
European countries
837,398
813,500
Number of professional developers

745,139
750k 708,249
500k 467,454
368,291
310,048 292,586
268,149 254,682
250k
175,794 172,219

0
TitleNo: 3.3 GroupName: 11-20 GroupId: 567 ChartId: 179 ArticleId: 49 ChapterId: 11
y
ce
ia
ds
nd
en
ne
al
an
ai
ss
do
an
an
ed
ai
la
It
Sp
m
Ru
kr
Po
ng
Fr
rl
Sw
er
U
he
Ki
G
et
d
N
te
ni

U
Number
11-20 2017of professional
2016 developers by country
150k 144,382
Note: Where data for 2016 was not available, this is shown as blank
124,239 127,306
Source: Stack Overflow 108,626 105,170

100k 96,862 96,324 95,391 92,772
82,874 80,762
79,112
50k

0
nd
ey
ia
ic
ria
ay
ry
ar
an
an
bl
ga
iu
w
rk
st
la
m
pu
nl
lg
or
m
Tu
un
er
Au
en
Be
Fi
N
Ro
Re
itz
H
D
Sw
h
ec
Cz

2017 2016
Number
21-30 of professional developers by country
80k
75,672
68,568
Source: Stack Overflow
59,428
60k
48,940 48,932
47,351
40k
34,059
31,812
29,347
22,162
20,271
20k
0
0
Portugal Ireland Greece Bulgaria Belarus Serbia Slovakia Croatia Lithuania Slovenia
2017 2016
31
3.2
Europe’s tech workforce and developer

population is booming
1578
2328 6335
2328
5328
Number of professional developers by country
3453
Number
31-40 of professional developers by country
20,853
19,887
20k

17,531
2328 15k
2328
11,563
11,056
10,414 10,289
10k
7,021 6,892
5,047
5k
1,994
0 0 0
0
ia
ta
us
o
a
ia
ia
va
ur
ni
ni
gr
tv
sn
on
al
do
pr
ba
to
ne
bo
La
M
Bo
ed
Cy
ol
Es
Al
te
m
M
ac
on
xe
M
Lu
M
2017 2016
Europe’s developer pool is

large and growing
5.5M
professional developers in
Europe, compared to 4.4M in the
US, according to Stack Overflow
European tech is going forward super fast. It is still maybe following

the situation in Silicon Valley but I think that this is shifting. Shifting
especially because there is so much talent in Europe that wants to
stay or wants to come back from wherever they are. For example, we
have a lot of really good engineers from Slovenia and Croatia going to
work for Facebook or Google for a couple of years in the States but
they would wish to come back, they would like to be back in Europe.
Urska Srsen
BellaBeat
32
3.2

Germany has overtaken the UK as the largest country for professional

developers in Europe
Number of professional developers by country

Source:
Stack Overflow
It is unsurprising that the developer population of Europe is

increasing: software is eating the world. Developers are needed in
every type of business, from AI to insurance. And as demand for
talent continuous to outstrip supply, we are seeing a greater drive
from both the public and private sector to enable more people to
enter or extend their career in technology. Junior developers are
now more likely to have been exposed to coding within their formal
education, and we’re seeing a surge in demand for non-formal
education amongst the wider developer population.
Sean Bave
Stack Overflow
33
3.2

London is the top European hub for professional developers,

followed by Paris, Moscow, Madrid and Berlin
Top 20 cities by number of professional developers

France has incredible engineering talent and a unique set of values

and aesthetics making its talent and environment uniquely attractive
in an international context. Still, there are challenges in hiring and
firing, financing, and other ways startups fit into the overall business
ecosystem that need to be fixed before can the current startup
excitement be a trend and not a fad.
Ian Rogers
LVMH
34
3.3
The presence of tech giants in Europe is changing
the dynamics of the region’s talent pool
In last year’s report, we Acquisitions of European deep tech companies by US tech giants
highlighted 53 acquisitions made since December 2016
since 2011 by the top 5 largest
US tech companies. Since
then, they’ve made 10 further
acquisitions in Europe
22/11/2017
Source: Dealroom.co The State of European Tech 2017
We also highlighted how large global tech companies are expanding their
presence in Europe through large - and fast-growing - engineering
centres to tap into the local talent pools. This is having an inflationary
effect on salary levels
We also highlighted how large Median software engineer salary ($ per year) in
global tech companies are Median software
selection engineer salary
European cities($ per year) in selection European cities
expanding their presence in
Europe through large - and fast-
Berlin 59,700
growing - engineering centres to
tap into the local talent pools.
This is having an inflationary
London 54,800
effect on salary levels
Paris 50,600
Barcelona 40,800
Milan 37,300
Lisbon 32,000
Warsaw 24,900
Bucharest 15,000
0 10k 20k 30k 40k 50k 60k

Median salary per year ($)
Median software engineer salary
Note: Data captured from Glassdoor in November 2017
Source: Glassdoor
35
3.3
European tech continues to diversify

geographically, driving cross-border
investment activity
There’s a lot more competition for talent both from established tech
giants and new companies starting up across Europe. European
startups need to treat finding, growing and keeping talent just like
they would customer acquisition or product development: have
it as a key metric on the management dashboard and see it not
just headcount but pipeline, attrition, development programmes
and succession planning. It’s up to leaders to ensure their teams
are diverse and there are enough highly capable managers to keep
them engaged. Digital talent, particularly the top people, has an ever
growing number of options in Europe and choose where and who
they want to work for. If founders do not prioritise this from the
outset, talent will go elsewhere.
Dan Hynes
Atomico
1.5x
The expansion of global

tech giants in European
tech hubs is forcing local
higher average salaries are
entrepreneurs to up their offered by Facebook ($87k)
game in how they attract or Google ($83k) to software
and retain talent engineers compared to the
market average in London ($55K),
according to Glassdoor

3.3

investment activity
TitleNo:
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engineer 584will
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see founders
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In which one area does your company have the most difficulty
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Europe
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37
3.3

investment activity
TitleNo: 3.1 GroupName: Southern Europe GroupId: 588 ChartId: 185 ArticleId: 48 TitleNo: 3.1 GroupName: Nordics GroupId: 589 ChartId: 185 ArticleId: 48 ChapterId: 11
ChapterId: 11
The huge gap between software engineer salaries will see founders
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area doesengineer salaries will see
your company founders
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recruiting
up talent?
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of AI is driving an increasing battle for data science talent.
of AI is driving
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Europe Nordics
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40 41
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of AI is driving an increasing battle for data science talent. Source: The State of European Tech Survey 2017
DACH
47
There’s never been a better time to be a European

40
angel investor. We’re now witnessing a whole new

20
generation of companies being born from alumni of
15
previous European scale-ups and other tech giants
8
6
3
7 7 6 based in the region. With the advantage of having
0 been through the pain, failures and successes of
building a company before, Europe has never had
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Neil Murray
Source: The State of European Tech Survey 2017 The Nordic Web
38
3.3

investment activity 22/11/2017 The State of European Tech 2017
TitleNo: 3.1 GroupName: Alumni of selected US tech companies GroupId: 593 ChartId: 186
ArticleId: 48 ChapterId: 11
But while the presence of big But whileof

Number the presencecompanies
European of big tech founded
companies byforces
alumnifounders
of majortotech
up
tech companies forces founders their game on the talent side, it's clear that the presence of these tech
companies
to up their game on the talent giants has a hugely positive effect. Their alumni are prolific at founding
side, it’s clear that the presence companies in the region.
Alumni of selected US tech companies
of these tech giants has a hugely Number of European companies founded by alumni of major tech companies
positive effect. Their alumni are
prolific at founding companies in
1578
Microsoft 183
the region. 2328 6335
2328
Alphabet (Google) 182

5328
3453
Apple 40
TitleNo: 3.1 GroupName: Alumni of selected European tech companies GroupId: 758 ChartId:
186 ArticleId: 48 ChapterId: 11
22/11/2017 Amazon 39 The State of European Tech 2017
But while the presence of big tech companies forces founders to up

TitleNo:
their game3.1 GroupName: Alumniside,
of selected European
thattech
thecompanies GroupId: 758 ChartId:
Facebook on
186 ArticleId:
the talent
48 ChapterId:3411
it's clear presence of these tech
giants has a hugely positive effect. Their alumni are prolific at founding 2328
But while the

companies in presence
0 the region.
25 of 50big tech75companies 100 forces
125 founders
150 to
175 up 200
2328
their game on the talent side, it's clear Number ofthat thefounded
companies presence of these tech
Number of European companies founded by alumni of major tech companies
giants has a hugely positive effect. Their alumni are prolific at founding
European startups founded by alumni
companies in the region.
Alumni of selected European tech companies

Rocket Internet 87
Number of European companies founded by alumni of major tech companies
Note: Based on an analysis of founders of European startups that have previously worked at the named companies. Since
the underlying dataset is not comprehensive this is intended to provide a representative view of the relative
Nokia
importance of the alumni networks 85
Rocket Internet 87
Source: Atomico research based on Crunchbase data

Skype 53
Nokia 85
SAP 52
Skype 53
Ericsson 29
SAP 52
0 10 20 30 40 50 60 70 80 90
Ericsson Number of companies founded

29
European startups founded by alumni

0 10 20 30 40 50 60 70 80 90
Number of companies founded
Note: European
Since the underlying
startups dataset
founded is not comprehensive this is intended to be a representative view of the relative
by alumni
importance of the alumni networks of the respective companies
http://preview.stateofeuropeantech.com/all-charts/
Source: Atomico research 33/241
Note: Based on an analysis of founders of European startups that have previously worked at the named companies. Since
the underlying dataset is not comprehensive this is intended to provide a representative view of the relative
importance of the alumni networks
Source: Atomico research based on Crunchbase data
5493
2328
2328 39
3.4
The UK is Europe’s dominant
destination for migratory tech talent
The UK
TitleNo: is the #1
3.4 GroupName: destination
Default GroupId: 177for tech53talent
ChartId: moving
ArticleId:
For additional
into11 TitleNo:
50 ChapterId:
context, it is worth analysing a similar
3.4 GroupName: Default GroupId: 884 ChartId: 246 ArticleId: 50 ChapterId: 11
- and within - Europe, but faces strong competition dataset covering tech talent movement in 2016 provided
The UK is the #1 destination for tech talent moving into - and within - For additional context, it is worth analysing a similar dataset covering
from other countries to attract talent by LinkedIn for last year’s State of European Tech
Europe, but faces strong competition from other countries to attract tech talent movement in 2016 provided by LinkedIn for last year's State
talent
Top 10 European destinations for all international of Top
European Tech
10 European destination for all international
Topmovers
10 Europeaninto European
destinations tech movers into European tech
for all international Topmovers
destination tech in
for all international 2016
movers into European tech in 2016
United Kingdom 21.5 United Kingdom 24.4
Germany 13.8 Germany 12.4
France 9.1 France 8.6
Netherlands 7.4 Spain 6.7
Spain 7.3 Netherlands 6.1
Ireland 6.1 Ireland 6
Switzerland 4.1 Switzerland 3.7
Poland 3.9 Poland 3.6

Sweden 3.3 Sweden 3
Czech Republic 2.5 Italy 2.4
0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 25
% of all international movers % of all international movers
Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn.
2017 2016
A ‘mover’ is defined by LinkedIn as somebody now working in the tech A ‘mover’ is defined by LinkedIn as somebody now working in the tech
industry that has moved country or industry sector for their industry that has moved country or industry sector for their
primary employment between 2017 and 2016 primary employment between 2016 and 2015
Source:
Note: LinkedIn
All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as Source:
Note: LinkedIn
All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A ‘mover’ is defined by LinkedIn as
somebody now working in the tech industry that has moved country or industry sector for their primary employment somebody now working in the tech industry that has moved country or industry sector for their primary employment
between 2017 and 2016 between 2016 and 2015
Source: LinkedIn Source: LinkedIn

Germany, France and theTheNetherlands
22/11/2017 State of European Tech 2017 are the main For additional context, it The
22/11/2017 isState
worth analysing
of European Tech 2017 a similar
challengers to the UK in terms of destinations of choice dataset covering tech talent movement in 2016 provided
TitleNo: 3.4 GroupName: Default GroupId: 179 ChartId: 54 ArticleId: 50 ChapterId: 11 TitleNo: 3.4 GroupName: Default GroupId: 880 ChartId: 248 ArticleId: 50 ChapterId: 11
for talent moving into Europe’s tech industry from by LinkedIn for last year’s State of European Tech
outside
Germany, the region
France and the Netherlands are the main challengers to the UK For additional context, it is worth analysing a similar dataset covering
in terms of destinations of choice for talent moving into Europe's tech tech talent movement in 2016 provided by LinkedIn for last year's State
Top 10
industry European
from outside thedestinations
region for non-European of Top
European Tech
10 European destinations for non-European
Topmovers
10 European into European
destinations techmovers
for non-European industry
into European tech industry Topmovers
destinations tech movers
for non-European industry in 2016
into European tech industry in 2016
Netherlands 7.7 Netherlands 6.2
Spain 5.8 Spain 5.5
Ireland 5.4 Ireland 5
Sweden 4 Sweden 3.5
Switzerland 2.3 Switzerland 2.3
Poland 2 Italy 2
Belgium 2 Poland 1.8
0 5 10 15 20 25 30 0 5 10 15 20 25 30 35
% of non-European movers % of non-European movers
Note:
2017 All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. Note: 2016 All interpretations of the LinkedIn data are made by Atomico, not LinkedIn.
primary employment between 2017 and 2016 primary employment between 2016 and 2015
Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A ‘mover’ is defined by LinkedIn as
Source: LinkedIn Source:
Note:
somebody now working in the tech industry that has moved country or industry sector for their primary employment
All LinkedIn
interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A ‘mover’ is defined by LinkedIn as
between 2017 and 2016 between 2016 and 2015

40
3.4
The UK’s position as Europe’s dominant

destination for tech talent is being eroded
The UK and Germany are the top two countries For additional context, it is worth analysing a
leading the race to attract talent moving within similar dataset covering tech talent movement in
Europe 2016 provided by LinkedIn for last year’s State of

European Tech
For additional context, it is worth analysing a similar dataset covering

Top 10 European destinations for intra-European Toptalent
tech 10 European
movement indestinations
2016 provided by for intra-European
LinkedIn for last year's State
The UK and Germany are the top two countries leading the race to of European Tech
movers within European tech industry
attract talent moving within Europe
movers within European tech industry in 2016
Top 10 European destinations for intra-European movers within European tech industry in
Top 10 European destinations for intra-European movers within European tech industry 2016
United Kingdom 14.9 United Kingdom 18
Spain 8.9 Spain 7.6
Netherlands 7 Ireland 6.8
Ireland 6.9 Netherlands 6
Switzerland 5.7 Poland 4.9

Poland 5.3 Switzerland 4.9
Czech Republic 3.3 Italy 2.8
Sweden 2.9 Sweden 2.6
0 2 4 6 8 10 12 14 16 0 2.5 5 7.5 10 12.5 15 17.5
% of intra-European movers % of intra-European movers
Note: 2017 All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. Note: 2016 All interpretations of the LinkedIn data are made by Atomico, not LinkedIn.
Note: All interpretations
primaryofemployment
the LinkedIn data between 2017 and
are made by Atomico, 2016 A ‘mover’ is defined by LinkedIn as
not LinkedIn. Note: All primaryofemployment
interpretations the LinkedIn data between 2016 and
are made by Atomico, 2015 A ‘mover’ is defined by LinkedIn as
not LinkedIn.
Source:somebody
LinkedIn
now working in the tech industry that has moved country or industry sector for their primary employment Source:somebody
now working in the tech industry that has moved country or industry sector for their primary employment
LinkedIn
between 2016 and 2015
London is the top city Top 5 European city destinations for all migrants into and within
destination both for tech talent European tech industry
moving within Europe, as well
as for those entering the tech
industry from outside the region
Source: LinkedIn
41
3.5
The UK is the number one source of outbound tech
talent moving within Europe’s tech industry
The UK is the source of the largest share of For additional context, it is worth analysing a
outbound tech talent leaving to move to another similar dataset covering tech talent movement in
country within Europe 2016 provided by LinkedIn for last year’s State of
22/11/2017 The State of European Tech 2017 European Tech

Top 10 European source countries of intra-
The UK is the source of the largest share of outbound tech talent leaving
Top 10 European source countries of intra-
tech talent movement in 2016 provided by LinkedIn for last year's State
European
to movers
move to another countrywithin European tech
within Europe European
of movers within European tech in 2016
European Tech
Top 10 European source countries of intra-European movers within European tech Top 10 European source countries of intra-European movers within European tech in 2016
Germany 8.1 Germany 8
Spain 6.4 Spain 7
Italy 5.9 Italy 6.1

Ireland 5.8 Netherlands 4.9
Netherlands 4.8 Ireland 4.4
Ukraine 3.7 Ukraine 4.3
Poland 3.5 Russian Federation 3.7
Switzerland 2.8 Poland 3.1
0 2.5 5 7.5 10 12.5 15 17.5 0 2 4 6 8 10 12 14

% of tech movers % of intra-European movers
2017 2016
primaryofemployment between
the LinkedIn data are 2017 and
made by Atomico, 2016 A ‘mover’ is defined by LinkedIn as
not LinkedIn. Note: All interpretations
not LinkedIn.
Source:between
LinkedIn
2017 and 2016 Source:between
LinkedIn
2016 and 2015
A lot of smart people I know in tech are moving from London to

Berlin after Brexit - they are really open to trying to go elsewhere.
Jutta Steiner
Parity Technologies
42
3.5
More people are leaving the UK’s tech industry

than that of any other European country
The UK is also significantly larger than other For additional context, it is worth analysing a
countries as a source of outbound talent leaving similar dataset covering tech talent movement in
Europe’s tech industry for a country outside of the 2016 provided by LinkedIn for last year’s State of
region European Tech
TopUK10is also
The European source
significantly countries
larger than of European
other countries as a source of Top 10 European source countries of intra-
moverstalent
outbound out leaving
of European
Europe's techtech
industry for a country outside of European
tech movers
talent movement within
in 2016 European
provided by LinkedIntech inyear's
for last 2016State
the region of European Tech
Top 10 European source countries of European movers out of European tech Top 10 European source countries of European movers out of European tech in 2016
United Kingdom 38 United Kingdom 34.3
Ireland 5.1 Spain 4.5
Netherlands 4.2 Netherlands 4.2
Spain 3.7 Ireland 4.1

Ukraine 3.2 Russian Federation 3.5
Sweden 2.7 Ukraine 2.7
Switzerland 2.4 Sweden 2.6
Turkey 2.1 Switzerland 2.4
0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35
% of tech movers % of tech movers
2017 2016
not LinkedIn. Note: All interpretations
primaryof employment between
the LinkedIn data are 2016 not
made by Atomico, and 2015A ‘mover’ is defined by LinkedIn as
LinkedIn.
Source:between
LinkedIn
2017 and 2016 Source:between
LinkedIn
2016 and 2015
http://preview.stateofeuropeantech.com/all-charts/ 54/253 http://preview.stateofeuropeantech.com/all-charts/ 55/253

2328 6335
3.6
2328
5328
3453
Portrait of a European founder 18/11/2017 The State of European Tech 2017
TitleNo: 3.6 GroupName: Gender GroupId: 681 ChartId: 223 ArticleId: 86 ChapterId: 11
European founders come from a variety of backgrounds. They are, 2328

European founders come from a however, overwhelmingly
Characteristics malefounders
of European 2328
variety of backgrounds. They are,

Characteristics
Gender of European founders
however, overwhelmingly male
100 95
18/11/2017 75 The State of European Tech 2017
% of founders
TitleNo: 3.6 GroupName: First-time versus repeat founders GroupId: 759 ChartId: 223
50
European founders come from a variety of backgrounds. They are,

however,
25
overwhelmingly male
Characteristics of European founders 5
0
Male Female
First-time versus repeat founders

% of founders
53
50
47
Note: Based on an analysis of the founders of 2,300+ European companies that have raised >€1M. Data collected in
October and November 2017

40
Source: Dealroom.co
% of founders
30
TitleNo: 3.6 GroupName: Educational background GroupId: 684 ChartId: 223 ArticleId: 86
ChapterId: 11
20
European founders come from a variety of backgrounds. They are,
however,
10
overwhelmingly male
Characteristics of European founders
0
First-time founders Repeat founders
Educational background
% of founders
5493
60
60
6335 Note: Based on an analysis of the founders of 2,300+ European companies that have raised >€1M. Data collected in
October and November 2017

% of founders
Source: Dealroom.co
TitleNo: 3.6 GroupName:

27 Sole founders versus founding teams GroupId: 685 ChartId: 223
20
European founders come from a variety13 of backgrounds. They are,
however, overwhelmingly male
Characteristics
0 of European founders
Technology (computer science, etc) Other technical disciplines (maths, Non-technical disciplines (arts,
2328
physics, etc) business)
2328
% of
Sole founders versus founding teams
founders
45,023
Note: Based on an analysis of the founders of 2,300+ European companies that have raised >€1M. Data collected in
60 October and November 2017 58
50
Source: Dealroom.co
42
% of founders
40
Note: 30
Based on an analysis of the founders of 2,300+
European companies that have raised >€1M. 20
Data collected in October and November 2017
10
Source:
Dealroom.co 0
Sole founder Part of founding team of 2+
% of founders
44
3.6
Portrait of a European founder
Europe’s top technical and business schools are Top 10 institutions by number of alumni that have
key sources of entrepreneurial talent founded companies
Note: Based on an analysis of the founders of 2,300+ European

companies that have raised >€1M. Data collected in October
and November 2017
Source: Dealroom.co
Consulting firms and big tech companies are key Top 10 companies by number of alumni that have
sources of European founders founded companies
Note: Based on an analysis of the founders of 2,300+ European

companies that have raised >€1M. Data collected in October
and November 2017
Source: Dealroom.co
Photo: Sami Heiskanen 45

04
1578
2328 6335
2328
5328
3453
Community 2328
2328
Over the last couple of years, this report

has identified a growing number of tech
hubs
Some of them have emerged in the continent’s biggest cities, which
is to be expected, whilst others have grown in smaller towns.
Are our tech communities growing broader or getting deeper?
5493
6335
2328
2328
45,023
4.1
Europe’s growing and highly-engaged
tech communities TitleNo: 4.1 GroupName: Default GroupId: 863 ChartId: 67 ArticleId: 52 ChapterId: 12
There are hundreds of tech-related events happening daily across

Europe's tech ecosystem
There are hundreds of tech- Number
Number of tech Meetup events per
of tech-related year
Meetup events per year and per day in
related events happening daily Europe
across Europe’s tech ecosystem 62,884
60k
51,132
Number of events per year 40k

36,227
27,173
20k
16,256
8,236
0
2012 2013 2014 2015 2016 2017
Meetup events hosted

Note: 2017 annualised based on data to end of September 2017
Source: Meetup
Europe’s tech community

enjoys access to an
incredible range of events
172
to network and share tech-related events take place
daily across Europe on Meetup’s
knowledge and experiences
platform
A small group of successful entrepreneurs can have tremendous

impact on building a tech community. It only requires four to five
successful entrepreneurs setting up a variety of basic building blocks
that become powerful conduits for knowledge transfer through
sharing deals, comparing notes and explaining what is globally best-
in-class. This includes seed funds, accelerators, creating shared
working and meeting spaces. These become talent magnets and
inherently form healthy competition between the new generation
of entrepreneurs building even more impactful products and
businesses. Building a vibrant tech ecosystem is the modern alchemy
for any economy serious about becoming a global leader.
Mattias Ljungman
Atomico
47
4.1
Europe’s growing and highly-engaged tech
communities
There are sizeable communities coming together at tech events

throughout Europe to swap ideas and experiences
There are sizeable communities Number
Number of active members
of active of tech-related
members Meetup groupsMeetup
of tech-related by country
groups by country
coming together at tech events
throughout Europe to swap ideas 200k 195,100
and experiences

150k
116,967
100k 92,475
70,151
49,929
50k
36,651
23,368 21,256 17,523 13,871 12,581 10,326
0
Eu l
pe
en y
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ria
nd
ey
nd
ay
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ai
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Fr
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Re Por
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Be
Ro
U
he
itz
H
Ki
of
et
d
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te
ni
U
Active members in tech Meetup groups
Source: Meetup
TitleNo: 4.1 GroupName: Top 10 hubs GroupId: 860 ChartId: 72 ArticleId: 52 ChapterId: 12
Europe's largest hubs for tech-related Meetups are also its most
Europe’s largest hubs for tech- Number of active members by city and average number of events
engaged
related Meetups are also its attended per year per active member
Number of active members by city and average number of events attended per year per
most engaged active member
Top 10 Hubs
120k
Average number of events attended per year per

5.4 5.2 5.2 5.4
5.1 5.3
90k
4.8
4.5
active member
4.4 4.4
60k
4.2
100,078
3.7
3.6
30k 3.6
45,698
40,277
26,282 22,209 20,613 18,352 17,832 16,628 15,422
0 3
rid
lin
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ub
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un
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TitleNo: 4.1 GroupName: Hubs 11-20 GroupId: 867 ChartId: 72 ArticleId: 52 ChapterId: 12
el
kh
er
ta
D
Lo
rc
M
oc
st
Is
Ba
Am
St
Europe's largest hubs for tech-related Meetups are also its most
engaged
Active members Average Meetups attended per member per year
Number of active members by city and average number of events attended per year per
active
Hubs member
Note: 11-20
Meetup events attended per member per year data for 2017 is annualised based on data to end of September 2017
16k 5.4
Average number of events attended per year per
Source: Meetup
5
12k 4.6 4.8

4.5 4.5
active member
4.1
8k 4.2
3.9
13,054
12,125 3.7
11,296 10,742 10,251
9,544
4k 8,483 7,979 3.6
7,039 6,800
3.2
Note: 3.1
2017 based on 9M to September 2017 and
2017 annualised based on RSVPs to end of 0 3
September 2017
w
st
rg
en
ls
na
r
te
sl
ric
se
co
sa
bu
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en
ag
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da
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nh
Vi
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W
Br
M
Bu
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H
an
Source:
Co
Meetup
Active members Average Meetups attended per member per year
Note: 48 per member per year data for 2017 is annualised based on data to end of September 201758/241
Meetup events attended
4.1
Europe’s growing and highly-engaged tech

communities
We’re witnessing several initiatives dedicated to strengthening the

connections between local hubs, especially evident in the Nordics
and CEE. Unfortunately, Western Europe isn’t showing any signs of
progress as Paris, London and Berlin continue competing to to be
crowned “tech capital” of the continent. Without more ambitious
contributions from the private sector to create more sustainable
bridges between these tech hubs, we will have no choice but to
continue relying on current public initiatives that show little to no
sign of solving this issue.
Ben Costantini
Startup Sesame
TitleNo: 4.1 GroupName: Top 10 hubs GroupId: 229 ChartId: 66 ArticleId: 52 ChapterId: 12
Europe’s largest tech Europe's largest

‘Top 20 hubs bytech
levelcommunities continue
of tech-related to see
Meetup significant increases
activityv
communities continue to in engagement
see significant increases in Top 20 hubs by level of tech Meetup activity in 2017, ranked by number of Meetup attendees
engagement Top 10 Hubs
334,369
300k
267,536
219,825
# of attendees
200k
162,824
148,709
111,043
98,705
100k 85,725 80,116
64,380 66,679 65,668 60,641
56,739
40,151 45,371 49,643 50,888 49,877
37,436
27,832 32,199 35,454 41,347
25,595 19,132 20,870 20,981 25,604
16,55
0
on
in
ris
en
rid
lin
rg
on
sa
rl
bu
da
ub
Pa
ch
nd
ad
Be
el
ar
er
am
ün
D
Lo
rc
W
st
Ba
H
Am
2017 2016 2015
Europe's largest tech communities continue to see significant increases
in engagement
Hubs
Top 2011-20
Note: 2017 annualised
hubs by levelbased on RSVPs
of tech to end of
Meetup September
activity 2017
in 2017, ranked by number of Meetup attendees
Source: Meetup
40,633
40k 38,615
36,868
33,323
31,763
30,347 29,479
30k
# of attendees
24,268
22,632 23,326 22,957
21,448 21,943
20,972 20,587
20k 19,497
18,104 17,849
15,865 15,401
13,374 14,123
11,832 12,648 11,784
10k 9,573 16,482
8,093 8,995
7,222
0
en
na
ls
ul
st
ów
r
te
sl
ric
se
nb
pe
ol
en
ag
es
ak
O
Zü
kh
us
da
ta
nh
Vi
ch
Kr
oc
Br
Is
Bu
pe
an
St
Co
M
2017 2016 2015
Note: 2017 annualised based on RSVPs to end of September 2017

Source: Meetup
49
4.2
As tech eats Europe, every
city is becoming a tech city TitleNo: 4.2 GroupName: Default GroupId: 237 ChartId: 69 ArticleId: 53 ChapterId: 12
The density of concentration in primary tech hubs varies significantly

between countries, especially as new hubs spring up and prosper with a
country
The density of concentration Share of active members of tech-related Meetup groups in a given
in primary tech hubs varies Share of active
country thatmembers of tech in
are located Meetups in a given
selected citycity
significantly between countries,
especially as new hubs spring up 87.4
% of nationwide active members in given city

and prosper within a country 78.2
75 72 71.9 71.4
68.2
63.6
55.4
51.3 49.4
50 48.4
45.2 43.9
35.6 34.4
31.7
29.4
25
15.2
9.7
3.5
0
in
id
r
o
ul
na
on
ris
ls
w
st
in
en
te
r
on
sl
ic
ric
Am se
co
sa
rl
bl
r
nb
bu
pe
da
ol
en
Pa
ag
nd
ad
es
O
un
Be
el
u
Zu
kh
ar
us
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da
ta
am
nh
Vi
D
Lo
ch
rc
M
W
oc
Br
st
M
Is
Bu
pe
Ba
an
St
Co
M
% of nationwide active members
Source: Meetup
Germany and Spain have the least-

centralised tech ecosystems in Europe
34% 32% 87%

of Germany’s tech community is of Spain’s tech community is of Hungary’s tech community, by
based in Berlin based in Madrid contrast, is based in Budapest
No one European city has a monopoly on creating tech leaders,

either; talent and ambition can come from anywhere, and Europe’s
entrepreneurs now have increased access to capital, regardless of
geography.
Luciana Lixandru
Accel
50
4.2
As tech eats Europe, every city is becoming a

tech city 22/11/2017 The State of European Tech 2017
There are signs that every city is becoming - or will eventually become -
a tech city. There are already 160+ hubs across Europe with significant
tech communities
There are signs that every city Number of European cities with >50 tech-related Meetup events per
is becoming - or will eventually Number
year of European cities with >50 tech Meetup events per year
become - a tech city. There
are already 160+ hubs across 167
Number of cities with >50 Meetup events per year

Europe with significant tech 150 143
communities
114
100
83
54
50
30
0
2012 2013 2014 2015 2016 2017
22/11/2017 Number of cities with >50 events per year The State of European Tech 2017

Note: 2017 based on data to 30 September 2017

Looking at what's happening within individual countries, it's clear that
Europe is witnessing the spread of tech communities within a growing
Source: Meetup
Looking at what’s happening number

Numberof ofcities
distinct hubs with >500 active members of tech-related
within individual countries, it’s Number of cities withby
Meetup groups country
>500 active members of tech-related Meetup groups by country
clear that Europe is witnessing
the spread of tech communities 25
Number of cities in given country with >500
24
within a growing number of 21

cities 20
active members
15
13 13 13
10
8
7
5
5 4 4 4 4 4 4
3 3 3 3
2 2 2 2 2
0
ne
nd
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ai
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ug
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ed
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la
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la
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pu
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rt
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Re
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Cz
U
Number of distinct hubs with >500 active members of tech-related Meetup groups
Source: Meetup

4.2
As tech eats Europe, every city is becoming a

tech city
In fact, there are now more tech Meetups happening outside Europe's 1578
Top 20 hubs than inside 6335

In fact, there are now more Distribution of tech-related Meetup events in and outside of Top 20
2328
tech-related events happening Distribution of tech-related Meetup events in- and outside of Top 20 hubs in Europe
hubs in Europe 2328
outside Europe’s Top 20 hubs 5328
than inside 100 3453
% of tech-related Meetup events

75 52 49
54
59
64 65
50 2328
2328
25 48 51
46
41
36 35
0
2012 2013 2014 2015 2016 2017
% in Top 20 cities % outside Top 20 cities

Note: 2017 based on Meetup events to end of September 2017
Source: Meetup
It’s been magnificent to see the accelerating pace of new tech hubs
emerging all across Europe. As such a dispersed continent with so
many countries and languages, Europe can find its unique strength in
connecting these communities. We just need to keep on fuelling the
fire and working together.
Marianne Vikkula
Slush
5493
6335
2328
2328
45,023
52
4.3
Despite burgeoning local ecosystems, founders
continue to move between countries to start-up
21% of European founders moved to another country to start-up, with

highest founder mobility seen in Central & Eastern Europe
21% of European founders % of founders that moved to another
moved to another country to % of founders
country to that moved by
start-up to another
regioncountry to startup by region of origin
of origin
start-up, with highest founder
mobility seen in Central &
Eastern Europe All 21
Central & Eastern Europe 29
Greece, Italy, Portugal & Spain 17
UK & Ireland 15
Nordics & Baltics 12
Benelux 9
France & DACH 9
0 5 10 15 20 25 30
% of founders
% of founders
Source: Startup Heatmap Europe 2017, European Startup Initiative
Despite concerns about Brexit, Top 10 European hubs selected by European

London is the #1 most preferred founders as their preferred location to start again
location to start-up by European http://preview.stateofeuropeantech.com/all-charts/ 66/241
founders, followed by Berlin and
Barcelona
Source: Startup Heatmap Europe 2017, European Startup Initiative
53
0
4.3
Despite burgeoning local ecosystems, founders

continue to move between countries to start-up 22/11/2017 The State of European Tech 2017
Access to talent is by far the most important factor influencing founder

location choices
Access to talent is by far Factors
Factors that
that influence
influence locationlocation choice founders
choice of European of European founders
the most important factor
influencing founder location 80 77
% of founders indicating 'very important' or 'not

choices
62
60 58
55
52
important'
44
When I look at the other 40
examples based in Estonia, such

as Jobbatical, Funderbeam, 23
TransferWise and Starship 20
15
14
Technologies, they are all 9 10
building relationships and 5
collaborating outside of Estonia. 0

Access to talent Ease & cost of Access to capital Quality of Existing Personal Proximity to
It is also a good moment since doing business ecosystem Network target market
we live during an era of digital

Very important Not important
disruption and we need to
adopt a collaborative approach
to stay ahead of the game. Source: Startup Heatmap Europe 2017, European Startup Initiative
Kristel Kruustük
Testlio
The migratory flow of talent is

not evenly distributed; Southern,
Central and Eastern Europe
continue to see a loss of talent
to other regions
European founders no longer think locally. They think continentally,

and have grown their ambition to become global players. Europe
houses top technical and business schools and entrepreneurship is
now a top of mind choice.
José del Barrio

Samaipata Ventures
54
05
1578
2328 6335
2328
5328
3453
Capital Flows 2328

2328
Some people like to look at pure financials
Are the number of investments in tech companies up or are they

down? Is the total amount of money invested in European tech
companies still growing?
Can this really be another record year for European tech?
Is there anything else to be done to attract more capital from LPs?
5493
6335
2328
2328
45,023
5.1
Another record year for
European tech investment 22/11/2017 The State of European Tech 2017
Total capital invested into European tech in 2017 will comfortably exceed
Total capital invested into the record-breaking
Capital invested ($B)levels
and of 2016
# of deals, annual, 2012 to 2017
European tech in 2017 will Capital invested ($B) and # of deals, annual, 2012 to 2017
comfortably exceed the record- 25
breaking levels of 2016 3,720 3,449 3600
20 19.1
2,837 3000
Capital invested ($B)
15 14.4
# of deals
2,247 13.2
2400
1,838
10
8.6 1800
1,276
5 4.6
4.1 1200
0 600
2012 2013 2014 2015 2016 2017
Capital invested ($B) # of deals
22/11/2017
Note: The State of
All Dealroom.co data excludes the following: biotech, European Tech
secondary 2017
transactions, debt, lending capital, grants. Please
also note the data excludes Israel. 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017
Source: Dealroom.co
Europe has seen more than $3B invested per quarter for 11 consecutive
Europe has seen more than quarters
Capital invested ($B) and # of deals per quarter
$3B invested per quarter for 11 Capital invested ($B) and # of deals per quarter
consecutive quarters 6 1250
5.4
1,014 4.9
4.5 1000
4.2
886 887
3.9
831
3.5 3.5 3.5 793
3.3 3.4
# of deals
3.2
3
3 688 682 750
2.6
2.3
567 2.1
499 1.7
1.5
1.5 500
1.2 1.1 1.2
1 0.9 1
0.8
293
0 250
Q 17
17
Q 16
16
Q 16
Q 17
Q 15
15
Q 15
Q 16
Q 14
14
Q 14
Q 15
Q 13
13
Q 13
Q 14
Q 12
Q 12
12
Q 12
Q 13
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
1
3
1
4
2
4
1
4
Q
Q
Q
Q
Source: Dealroom.co
There’s capital out there for starting and scaling companies at a level Stephen Lowery
that has not been seen in Europe historically. We’ve observed growth Silicon Valley Bank
in the number of funds across early and growth stage. And with a
maturing ecosystem, we’re seeing increased investment from US and
Asia for scaling companies and a resurgence of the ‘mega-round’ with
companies raising more than $100m.
56
5.1
Another record year for European

tech investment

There has been an increase in capital invested and number of deals for
TitleNo: 5.1 GroupName: Round size: $0-2M GroupId: 470 ChartId: 156 ArticleId: 56
all round
ChapterId: 13 sizes, except for <$2M rounds, which declined slightly
ChapterId: 13 in 2017
There has been an increase in capital invested and number of deals for There has been an increase in capital invested and number of deals for
Capital
all invested
round sizes, ($M)
except for <$2Mand # of
rounds, deals
which by slightly
declined roundinsize
2017 all round sizes, except for <$2M rounds, which declined slightly in 2017
Capital invested ($M) and # of deals by round size Capital invested ($M) and # of deals by round size
Round size: $0-2M Round size: $2-5M
2000 2000
1,885
1,841 1,854
1,657
Capital invested ($M) / # of deals

1500 1,472
1500
1,339
1,283 1,281
1,111 1,102
1000 943 1000
879
720
678
586 637
578 585
22/11/2017 The State of European Tech 2017 22/11/2017 496 The State of European Tech 2017
500
386 500
344
TitleNo: 5.1 GroupName: Round size: $5-10M GroupId: 744 ChartId: 156 ArticleId: 56 263
197
ChapterId: 13 ChapterId: 13 144
0
There has beenCapital
an increase in capital invested and #number
invested ($M) $0-2M of deals for
of deals $0-2M There0 has beenCapital
an increase in capital invested and #number
invested ($M) $2-5M
of deals for
of deals $2-5M
all round sizes, except for <$2M rounds, which declined slightly in 2017 all round sizes, except for <$2M rounds, which declined slightly in 2017
2012 2013 2014 2015 2016 2017
2012 2013 2014 2015 2016 2017
Capital invested ($M) and # of deals by round size Capital invested ($M) and # of deals by round size
Round size: $5-10M Round size: $10-20M
2500 3000
Source: Dealroom.co 2,311 2,745
Source: Dealroom.co
2500
2000

1,732 2,075
2000
1500 1,736
1,223 1500
1,157
1000
1,039
1000
22/11/2017 The State of European Tech 2017 22/11/2017 831 The State of European Tech 2017
648
487
500
TitleNo: 5.1 GroupName: Round size: $20-50M GroupId: 746 ChartId: 156 ArticleId:
324 56 TitleNo:
500 5.1 GroupName: Round size: $50M+ GroupId: 747 ChartId: 156 ArticleId: 56
ChapterId: 13 171
249 ChapterId: 13
157 152 196
65 91 123
57 68 69
There0 has been an increase in capital invested and number of deals for There0 has been an increase in capital invested and number of deals for
Capital invested ($M) $5-10M # of deals $5-10M Capital invested ($M) $10-20M # of deals $10-20M
all round sizes, except for <$2M rounds, which declined slightly in 2017 all round sizes, except for <$2M rounds, which declined slightly in 2017
Capital
Round invested
2012
size:($M)
2013 and
2014# of deals
$20-50M
2015 by round
2016 size2017 Capital
Round invested
2012
size:($M)
2013 and
2014# of deals
$50M+
2015 by round
2016 size2017
4,220 6,730
Source: Dealroom.co Source: Dealroom.co
4k
6k
3,261 http://preview.stateofeuropeantech.com/all-charts/ 5,177 77/241
3,061
3k
4,192
4k
2k 1,839 2,986
1,294
2k
1,036
1k
618 728
60 97 109 136
39 33 7 5 26 43 34 54
0 0
Capital invested ($M) $20-50M # of deals $20-50M Capital invested ($M) $50M+ # of deals $50M+
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
http://preview.stateofeuropeantech.com/all-charts/ 76/241 http://preview.stateofeuropeantech.com/all-charts/ We are seeing the first 74/241
indications of a stabilisation
It’s nothing like when I launched, when my boss said to me ‘Brent, in the # of earliest stage
have you ever come across two people under 30 who’ve raised over funding rounds, reflecting a
$1million from a business plan?’ and we were like ‘No!’. Now we can global trend
think of hundreds of people - it’s much better now, there are many
12%
more support networks and there is a monetisation system out there
for entrepreneurs.
Brent Hoberman
Founders Factory, Founders Forum, firstminute capital decline in # of deals between
$0-2M year-on-year
57
5.1
Another record year for European

tech investment
The long-term investment trend in Europe reflects the remarkable

The long-term investment Trailing 12-month
expansion capital invested
of its technology ($B) and # of deals by quarter
ecosystem
trend in Europe reflects the Trailing 12-month capital invested ($B) and # of deals by quarter
remarkable expansion of its
20 4000
technology ecosystem
3,720 17.8
3,355
16.1
15 14.1 14.3 14.4 14.2 3200

13.9
13.2

12.3
11.4
# of deals
10.3
10 2,213 2400
2,012 8.6
8
1,671 6.4
5.4
5 4.6 1600
4.1 4.2 4.2 4.2
0 800
17
17
16
16
16
17
15
15
16
14
15
15
14
14
14
12
13
13
13
13
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
3
4
1
3
4
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q

Source: Dealroom.co
But there is still huge headroom. European countries still considerably

lag others such as the US and Israel in terms of capital invested per
capita. To pick just one example, Italy is a market with huge upside
potential
But there is still huge headroom. Capital invested ($) per capita by country
European countries still lag Capital invested ($) per capita by country
others such as the US and Israel
in terms of capital invested per Israel 304
capita USA 246
Sweden 123
Ireland 111
United Kingdom 59
Finland 58
France 45
Denmark 33
Norway 29
Germany 26
Netherlands 25
Belgium 19
Spain 14
Austria 9
Portugal 4
Italy 3
Russia 2
Turkey 0
0 50 100 150 200 250 300

Capital invested ($ per capita)
$ per capita
Note: Based on capital invested ($B) in 2016
Source: Dealroom.co
58
5.2
A deep dive into
European tech
The
The UKUK remains
remains thedestination
the largest largest fordestination forin capital
invested in Europe; in
capital invested
Europe; in addition, 10 countries have now raised >$1B since 2012
addition, 10 countries have now raised >$1B since 2012
Capital
Capitalinvested ($B)
invested by country
($B) by country
United Kingdom 13.3 5.4

Germany 8.9 2.5
France 6.9 2.1
Sweden 3.5 0.9
Spain 1.8 0.8
Netherlands 1.5 0.4
Russia 1.7 0.2
Switzerland 1.4 0.3
Ireland 1.1 0.3
Finland 1.1 0.3
Denmark 0.7 0.1

Belgium 0.5 0.2
Austria 0.4 0.3
Italy 0.5 0.1
Norway 0.3 0.1
Poland 0.2 0.2
Iceland 0.2
Turkey 0.2
Estonia 0.2
Luxembourg 0.1 0.1
Lithuania 0.1
Portugal 0.1
Cyprus 0.1
Croatia 0.1
Romania 0
Ukraine 0
Greece 0.1
Czech Republic 0
Hungary 0
Rest of Europe 0.1
0 2.5 5 7.5 10 12.5 15 17.5 20

2017 (YTD) 2012-2016
Source: Dealroom.co
59
5.2
A deep dive into

European tech
1578
The UK, France and Germany dominate stories about European 2328 6335
investment levels, but digging beneath the surface it’s the growth of 2328
capital invested into countries such as Belgium, Norway or Romania

that
TitleNo:tells another
5.2 GroupName: important
United Kingdom story
GroupId: 483 ChartId: 160 ArticleId: 55
ChapterId: 13 TitleNo: 5.2 GroupName: France GroupId: 485 ChartId: 160 ArticleId: 55 ChapterId: 13
3453
The UK, France and Germany dominate stories about European The UK, France and Germany dominate stories about European
investment levels, but digging
Capital invested ($M) beneath the surface,
by country perit's the growth of
year investment levels, but digging beneath the surface, it's the growth of
capital invested into countries such as Belgium, Norway or Romania that capital invested into countries such as Belgium, Norway or Romania that
tells another important story tells another important story
Capital invested ($M) by country per year Capital invested ($M) by country per year
United Kingdom France
7,177 2,981
3k 2328
2,772
2328
Capital invested ($M) by country
6k

2k
4,271
4k 3,848 1,552
1,148
2,404
22/11/2017 The State of European Tech 2017 22/11/20171k The State of European Tech 2017
2k 712
1,390 1,340 554
TitleNo: 5.2 GroupName: Germany GroupId: 486 ChartId: 160 ArticleId: 55 ChapterId: 13 TitleNo: 5.2 GroupName: Belgium GroupId: 796 ChartId: 160 ArticleId: 55 ChapterId: 13
0 0
investment 2012levels, but digging beneath
2013 2014 the surface,
2015 it's2016
the growth2017
of investment 2012levels, but digging beneath
2013 2014 the surface,
2015 it's2016
the growth2017
of
United Kingdom France

tells another important story tells another important story
Germany
Capital invested ($M) by country per year Belgium
Capital invested ($M) by country per year
Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017
3,273 3,315 256

Source: Dealroom.co Source:
250 Dealroom.co
3k 221
200
174
2,129 2,154
2k 150
100
1k 68
772
TitleNo: 5.2587GroupName: Norway GroupId: 794 ChartId: 160 ArticleId: 55 ChapterId: 13 TitleNo:
50 5.2 38 46
GroupName: Romania GroupId: 801 ChartId: 160 ArticleId: 55 ChapterId: 13
investment
0
2012
levels, but digging beneath
2013 2014
the surface,
2015
it's2016
the growth2017
of investment
0 levels, but2013
2012
digging beneath
2014
the surface,
2015
it's2016
the growth2017
of
tells Germany
another important story tells Belgium
another important story
Capital
Norway invested ($M) by country per year Capital
Romania invested ($M) by country per year
151 53
150 145
50
40
100
90
30
5493 20
50 16
12
25 27 10
7 2 2
1
0 0
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
Norway Romania
Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 83/241 http://preview.stateofeuropeantech.com/all-charts/
Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 93/241
2328
2328
45,023
60
5.2
A deep dive into

European tech
France is challenging the UK for

the most number of deals closed
per year
TitleNo: 5.2 GroupName: United Kingdom GroupId: 835 ChartId: 161 ArticleId: 55
ChapterId: 13 TitleNo: 5.2 GroupName: France GroupId: 488 ChartId: 161 ArticleId: 55 ChapterId: 13
Number of deals by country per year
France has overtaken the UK for the number of deals closed per year for France has overtaken the UK for the number of deals closed per year for
the first time the first time
Number
UnitedofKingdom
deals by country per year Number
Franceof deals by country per year
782 787 753

762
728
627
587
423
286
213
172
126
TitleNo: 5.2 GroupName: Germany GroupId: 824 ChartId: 161 ArticleId: 55 ChapterId: 13 TitleNo: 5.2 GroupName: Belgium GroupId: 834 ChartId: 161 ArticleId: 55 ChapterId: 13
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
the first
United time
Kingdom
the first
France
time
Number of deals by country per year Number of deals by country per year
Germany Belgium
426 75
395
386
60
320
268 48
191 34
18
16
TitleNo: 5.2 GroupName: Norway GroupId: 819 ChartId: 161 ArticleId: 55 ChapterId: 13 TitleNo: 5.2 GroupName: Romania GroupId: 836 ChartId: 161 ArticleId: 55 ChapterId: 13
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
the first time
Germany the first time
Belgium
Number of deals by country per year Number of deals by country per year
Norway
1578 Romania
6335 68 26
2328
66
2328
20
5328
3453
13
24 1578
6 6335
13 5 2328
12
3
2 2328
2012 2013 2014 2015 2016 2017 2012 2013 2014

5328 2015 2016 2017
2328
Norway 2328 Romania 3453

2328
2328
61
5.2
A deep dive into

European tech
The diversification TitleNo:

of European tech continues
5.2 GroupName: Top 5 to be GroupId:
Hubs reflected351
by ChartId: 113 ArticleId: 55 ChapterId: 13
increased capital invested into cities such as Amsterdam, Munich,
The diversification of European tech continues to be reflected by
Vienna and Barcelona...
increased capital invested into cities such as Amsterdam, Munich, Oslo
and Barcelona...
Top 20 European hubs by capital invested ($M)
Top 5 hubs
5,080
5k
4k
Capital invested ($M)
3k 2,878
2,473 2,400
2,054
2k 1,812
1,632
1,516
984 1,011 999 971

1k
22/11/2017 The State of European Tech 2017 722
568 547
386 347 367
82
TitleNo:
0 5.2 GroupName: Hubs 6-10 GroupId: 353 ChartId: 113 ArticleId: 55 ChapterId: 13
London Berlin Paris Barcelona Stockholm
increased
2012 capital
2013 invested
2014 into cities
2015 2016 such
2017 as Amsterdam, Munich, Oslo
and Barcelona...
Top
Hubs20 European
Note: 6-10
hubs by capital invested ($M)
2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017
500 Dealroom.co
Source:
471
400 393
300 293 291
249
229
217 218
200 188
140 144
133
120 116 117
97 105
100
62 55
45
25 32
0
Dublin Amsterdam Vienna Madrid Munich
2012 2013 2014 2015 2016 2017
Source: Dealroom.co
62
5.2
1578
A deep dive into

6335
European tech 2328
2328
5328

increased capital invested into cities such as Amsterdam, Munich, Oslo
and Barcelona...
Top 20 European hubs by capital invested ($M) 2328
23

Hubs 11-15
304
300
281
200 187
166 165 168
144
137
129 131
105 110
101
100
81
74 73
54
22/11/2017 41 44 The State of44
European Tech 2017 45
23 29
20
8
TitleNo:
0
5.2 GroupName: Hubs 16-20 GroupId: 355 ChartId: 113
Hamburg Bristol Cambridge Zurich Helsinki
increased
2012 capital
2013 invested
2014 into cities
2015 2016 such
2017 as Amsterdam, Munich, Oslo
and Barcelona...
Top
Hubs
20 European
Note:16-20
hubs by capital invested ($M)
Source: Dealroom.co
306
298
300
5493
6335 200
173
115
107
100 93 89
73 76
65 62
52 48
38 40
32
22
16 16
10
3 0 3
02328
2328
Oslo Moscow Brussels Manchester Milan
2012 2013 2014 2015 2016 2017

45,023
Source: Dealroom.co
63
5.2
A deep dive into

European tech
...as well as growing

22/11/2017numbers of funding rounds The State of European Tech 2017
in the region’s latest set of emerging tech hubs
TitleNo: 5.2 GroupName: Top 5 Hubs GroupId: 356 ChartId: 114 ArticleId: 55 ChapterId: 13
...as
# of well
dealsas growing
in Top numbers
20 European hubsof funding
(ranked rounds
by capital in theinregion's
invested 2017) latest set
of emerging tech hubs
#Top
of deals
5 hubs in Top 20 European hubs (ranked by capital invested in 2017)
521
500
433
400 393
312
# of deals
300 288
277
201 203 197

200
167 167
151
107 101
100 91
80
22/11/2017 The State of European Tech 2017 60 55
29 34
0
TitleNo: 5.2London
GroupName: Hubs Berlin
6-10 GroupId: 358Paris
ChartId: 114 Barcelona
ArticleId: 55 ChapterId:
Stockholm 13
...as well
2012
as2013
growing
2014
numbers
2015
of2016
funding rounds in the region's latest set
2017
#Hubs
of deals
6-10 in Top 20 European hubs (ranked by capital invested in 2017)
Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017
100
Source: Dealroom.co 95
83
75
69
58
# of deals
55 55
53
50 46 46 46
38 38 38
31 32 31
27
25 23 24
16 16
0
Dublin Amsterdam Vienna Madrid Munich
2012 2013 2014 2015 2016 2017
Source: Dealroom.co 125/241
64
5.2
A deep dive into

European tech
5493
6335
...as well as growing numbers of funding rounds in the region's latest set
# of deals in Top 20 European hubs (ranked by capital invested in 2017)
#Hubs
of deals
11-15 in Top 20 European hubs (ranked by capital invested in 2017)
60
55
50
44
2328
40
40 2328
35
34 34
# of deals
30
45,023
30
26
22
20 19 19 19
15 14 14 15
12 13
11
10 9 9
7 7
3 4 4
0
TitleNo: 5.2 GroupName: Hubs Bristol
Hamburg 16-20 GroupId:Cambridge
360 ChartId: 114 Zurich
ArticleId: 55 ChapterId:
Helsinki 13
...as well
2012
as 2013
growing numbers
2014 2015
of2016
funding rounds in the region's latest set
2017
#Hubs
of deals
16-20
in Top 20 European hubs (ranked by capital invested in 2017)
Source:
60 Dealroom.co 59
50
47
40
40
37
# of deals
35 34
31
30 29 29
22
20 19
16 15
14
10 10 10
10
7 7 7 6 7
5 5
3 2
1
0
Oslo Moscow Brussels Manchester Milan
2012 2013 2014 2015 2016 2017
Source: Dealroom.co
65
5.2
A deep dive into

European tech
TitleNo: 5.2 GroupName: Seed GroupId: 450 ChartId: 151 ArticleId: 55 ChapterId: 13
The median Series A round in Europe has increased significantly again

The median Series A round Mean and median round size ($M) by stage
and has now risen from $3.3M in 2012 to $5.5M in 2017
in Europe has increased
significantly again and has now Mean and median round size ($M) by stage
Seed
risen from $3.3M in 2012 to
$5.5M in 2017 1
1
0.8 0.8
0.75
Round size ($M)

0.6 0.6 0.6 0.6 0.6
0.5
0.5
0.3 0.3
0.25
0.2
0
22/11/2017 2012 2013 The State of European Tech
2014 2017
2015 2016 2017
Mean - Seed Median - Seed

TitleNo: 5.2 GroupName: Series A GroupId: 448 ChartId: 151 ArticleId: 55 ChapterId: 13

and has
Source: now risen from $3.3M in 2012 to $5.5M in 2017
Dealroom.co
Mean and median round size ($M) by stage

Series A
8.2
8
6.2
6 6
6
5.5 5.4 5.5
Round size ($M)
4 3.9 4
4
3.3
3
0
TitleNo: 5.2 GroupName: Series
2012 2013 B GroupId:
2014 451 ChartId:
2015151 ArticleId:
2016 55 ChapterId:
2017 13
The median
Mean - SeriesSeries
A A round
Median - Series in
A Europe has increased significantly again
and has now risen from $3.3M in 2012 to $5.5M in 2017
Mean and median round size ($M) by stage 131/241
Series
Source: B
Dealroom.co
25
23.8
20
Round size ($M)
15 14.7
13.3 13
12.2 12.4
11.3
10.6
10
8.5 8.7
8.1
7
0
2012 2013 2014 2015 2016 2017
Mean - Series B Median - Series B
Source: Dealroom.co 66
5.2
A deep dive into

European tech
TitleNo: 5.2 GroupName: Series C GroupId: 452 ChartId: 151 ArticleId: 55 ChapterId: 13

Mean
and hasand
nowmedian round
risen from sizein
$3.3M ($M)
2012bytostage
$5.5M in 2017
Mean and median round size ($M) by stage
Series C
30 30.1
30 29.4
27.2
23
20.2
Round size ($M)

20 19
18.6 18.5
13.4
11
10.2
10
0
2012 2013 2014 2015 2016 2017
Mean - Series C Median - Series C

Source: Dealroom.co
A combination of more ambitious founders and an increasingly

competitive VC landscape is driving up Series A round sizes, especially in
France and Germany
A combination of more ambitious Median
Median Series
Series A round
A round size
size ($) by ($) by
country andcountry
year and year
founders and an increasingly
competitive VC landscape 7 7
is driving up Series A round

sizes, especially in France and 6
5.5
Germany 5.1 5.1
Median round size ($M)
4.9 5
4.5
4 4.1 4 4
4 3.8 3.9
3.7 3.6
3.4 3.3 3.3 3.3
3 3
2.2
2
1.6
0
United Kingdom Germany France Spain Europe
1578
6335
2328 2012 2013 2014 2015 2016 2017
2328
5328
Source: Dealroom.co
2328
2328
67
5.2
A deep dive into

European tech
Fintech, food, transportation and healthcare have all seen large

capital investments in 20175.2 GroupName: Capital invested >$1B in 2017 GroupId: 329 ChartId: 106
TitleNo:
Fintech, food, transportation and healthcare have all seen large capital
Capital investedin($M)
investments by industry
2017
Capital invested ($M) by industry
Capital invested >$1B in 2017
4,195
4k
3k
2,275
2,022
2k 1,826
1,620 1,644 1,558
1,484 1,459
1,271 1,368 1,296
1,105 1,074
1k 800 828
745
536 584 494
476
387
257 220 292
86
22/11/2017
0 The State of European Tech 2017
h
od
re
g
ic
or
tin
fi c
ec
tio
ca
Fo
yt
ct
of
nt
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ta
lth
al
ire
Fi
or
ar
ck
TitleNo: 5.2 GroupName: Capital invested $500M-$1B in 2017 GroupId: 332 ChartId: 106
An
ea
D
sp
M
Ba
H
an
Tr
Fintech,
2012 food,
2013 transportation
2014 2015 and healthcare
2016 2017 have all seen large capital
investments in 2017
Capital
Note:
invested $500M-$1B in 2017
1500 Dealroom.co 1,457

Source:
1,358
1000 982 980 963 957 973

908 917
802 779
722 708 736
691 697
640 651 622
589
488 496 518 516
500 456 465 438
426 404
382 366
325 335 343
263 248
230 201 194
190 162 183
113 124 126
65
0
m
ic
el
t
t
y
gs
gy
en
en
ol
rit
in
om
io
ec
tio
us
av
co
er
in
am
to
sh
tm
nt
cu
nt
ra
Tr
Th
M
En
le
H
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ea
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Se
bo
G
ui
Te
of
op
cr
Cl
lla
et
Re
el
Co
rn
ev
&
te
D
R
In
2012 2013 2014 2015 2016 2017
Source: Dealroom.co
68
22/11/2017 TheAtomico
State of European
& SlushTech 2017 The State of European Tech 2017
5.2
1578
A deep dive into

TitleNo: 5.2 GroupName: Capital invested $100-500M in 2017 GroupId: 333 ChartId: 106
6335
2328
European tech
2328
Fintech, food, transportation and healthcare have all seen large capital 5328
investments in 2017 3453
Capital invested$100-$500M
in 2017
750 729
607 23
564 2328
500
449
430
398
355 352 368
300 298 285
272 272 279 265 276
260 249
250 226
194 192 182 176
160 164 150
125 125 124 140 124
100 98 114 106
86 75 88 88 79 80
59 54
17 26 23 24 34
12
0
te
on
cy
ts
ty
ds
ts
s
ga
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tic
ol
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au
ta
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Ki
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Le
to
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bo
rit
os
ca
Sp
Es
Be
Ev
Ag
pa
du
t
Ag
H
Ro
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an
al
m
Ed
&
on
Re
ch
is
co
s
ic
TitleNo: 5.2 GroupName: Capital invested <$100M in 2017 GroupId: 334 ChartId: 106
es
bl
er
m
e
Pu
ln
M
ic
Se
el
Pr
W
Fintech,
2012 food,
2013 transportation
2015 and healthcare have all seen large capital
2014 2016 2017

investments in 2017
Capital invested <$100M in 2017
200 Dealroom.co
Source: 192
150
127
112
106
100
61 63
5493
52
50 46 47 47
37 40
6335 34
26
16 17 19
11 13 10 12 9
5 6
2 1 2 0 2 0 0
0
Consumer Pets Construction Government Dating Workspaces Gambling
productivity
2012 2013 2014 2015 2016 2017
2328
2328
Source: Dealroom.co
Europe has had a strong momentum for several years, with a stable
and growing market, highly talented engineers and a blooming tech
45,023
ecosystem, including startups, professional incubators, and new

VCs. Access to early stage capital is maturing fairly well already, and
the next priority should be to create a favourable environment for
startups’ growth and exits to bring more liquidity to the market.
Fleur Pellerin
Korelya Capital
69
5.3
The strength of Europe’s tech ecosystem is
attractive to a diverse set of investors
Around 2,000 unique investors have participated in at least one

Around 2,000 unique investors Number of round
investment uniqueininstitutions thatup
Europe in 2017, have participated
around in atto
4x compared least
20121
have participated in at least one investment round in Europe per year
Number of unique institutions that have participated in at least 1 investment round in
investment round in Europe in
Europe per year
2017, up around 4x compared to
2012
2000 1,952
1,870
1500
# of unique investors
1,244
For some years, we didn’t look
to European market investors 1000 922
with hungry eyes because we
didn’t see the type of investor 644
527
we could work with, but over 500
the last few years we’ve seen

a number of investors starting
to attract more interest
0
2012 2013 2014 2015 2016 2017
because they clearly have good
ambitions, and that alone gives Unique investors
me a feeling that there’s cause

for optimism.
Note: Number of unique investors (incl. investment funds, corporate investors & accelerators, but excl. angel investors) that
have participated in at least 1 investment round per year. 2017 annualised based on projection for Q4 on Q3 2017
Timo Rein
Pipedrive Source: Dealroom.co
A growing number of corporate investors are investing in European tech

companies
A growing number of corporate Number
Number of unique
of unique corporate
corporate investors
investors per year and per year
number and number
of rounds ofleast
involving at rounds
one
investors are investing in corporate
involving investor
at least one corporate investor
European tech companies
637
600 580
# of unique corporate investors / deals
537
423
400
336
250
200 179
162
139
118
86 93
0
2012 2013 2014 2015 2016 2017
Number of unique corporate investors # of deals
Note: Unique corporate investor count is based on number of corporate (i.e. non investment fund) investors that have
participated in at least 1 round per year. 2017 annualised based on projection for Q4 on Q3 2017
Source: Dealroom.co
70
5.3
The strength of Europe’s tech ecosystem is

attractive to a diverse set of investors 22/11/2017 The State of European Tech 2017
Investors from around the world are coming to Europe to invest. More
than 200 unique US investment funds participated in funding rounds in
Investors from around the Numberinof
Europe unique US Investment funds that have participated in at
2017
world are coming to Europe to least 1 investment round in
Number of unique US Investment Europe
funds perparticipated
that have year in at least 1 investment
invest. More than 200 unique US round in Europe per year
investment funds participated in
funding rounds in Europe in 2017 250
234
213
Number of unique investment funds

200
182
146
Asian investors are 150
deploying large sums of 103

capital into European tech 100
86
companies
50
$1.8B 0
2012
Unique investors
2013 2014 2015 2016 2017
invested by Asian investors into

European tech companies in 2017
across more than 100 rounds Note: Number of unique US investment funds (excl. corporate investors & accelerators and angel investors) that have
participated in at least 1 investment round per year. 2017 annualised based on projection for Q4 on Q3 2017
Source: Dealroom.co
European tech continues to strengthen and diversify geographically, driving not only Hiro Tamura
cross-border investment activity but also increased interest from our VC peers in the US. Atomico
World class European companies such as MessageBird, Graphcore, Monzo, TransferWise,
Automile and Deliveroo have all attracted US investors in 2017, proving that European
tech is not only on fire at home but also abroad. This provides an interesting opportunity
moving forward for increased collaboration between US and European VCs which,
ultimately, continues to provide even greater runway for European founders
22/11/2017 toTech
The State of European build
2017 truly
global category leading companies from right here at home.
TitleNo: 5.3 GroupName: Capital invested ($B) GroupId: 472 ChartId: 157 ArticleId: 57
ChapterId: 13
The level of investment in Europe from Asian investors has grown

dramatically in recent years
The level of investment in Capital invested ($M) #byofand
deals#involving
of deals
Capital invested ($M) by and involving
Asian investors Asian investors 140/241
Europe from Asian investors has 2500

125
grown dramatically in recent 117
years
2000 100
1,827
1500 75
# of deals
61
1000 45
876 50
634
500 25
389
11 13
47 23
0 0
2012 2013 2014 2015 2016 2017
Capital invested ($M) # of deals
Source: Dealroom.co
71
5.4
2017 has seen another strong year
of fundraising for European VCs 22/11/2017 The State of European Tech 2017
TitleNo: 5.4 GroupName: Funds Raised GroupId: 429 ChartId: 145 ArticleId: 58 ChapterId:
13
European VCs have raised more than €10.6B funds since 2016
European VCs have raised more VC funds raised (€B) and # of VC funds closed per year by fund size
than €10.6B across 198 funds since VC funds raised (€B) and # of VC funds closed per year by fund size
2016 Funds raised
Funds raised (€B ) / # of funds closed

0
2012 2013 2014 2015 2016 H1 2017
TitleNo: 5.4 GroupName: Funds Closed GroupId: 431 ChartId: 145 ArticleId: 58 ChapterId:
13
<€25M - Funds raised €25-50M - Funds raised €50-100M - Funds raised
€100-250M - Funds raised €250M+ - Funds raised

European VCs have raised more than €10.6B funds since 2016
VC funds raised (€B) and # of VC funds closed per year by fund size
Source: Invest Europe / EDC
Funds closed
Funds raised (€B ) / # of funds closed
150
100
50
0
2012 2013 2014 2015 2016 H1 2017
€25M< - Funds closed €25-50M - Funds closed €50-100M - Funds closed

€100-250M - Funds closed €250M+ - Funds closed
Global investors are taking notice of the world-class technology

companies backed by European venture capital, and the returns being
generated. Since 2012, more than 1,800 venture-backed technology
companies, born in start-up hubs across the continent, have been
exited. The results are clear: last year European VC fundraising hit an
all-time high of €6.4 billion
Michael Collins
Invest Europe
72
5.4
2017 has seen another strong year of

fundraising for European VCs 22/11/2017 The State of European Tech 2017
TitleNo: 5.4 GroupName: Funds Raised GroupId: 432 ChartId: 146 ArticleId: 58 ChapterId:
13
First-time funds account for ~25% of funds raised by VCs in Europe and
First-time funds account for ~25% have
Funds raised €3B
raised since
(€B) andthe start ofof2016,
number fundsalthough
closed the
per data
year shows a type
by fund
of funds raised by VCs in Europe slowdown in number of first-time funds being closed
Funds raised
and have raised €3B since the Funds raised (€B) and number of funds closed per year by fund type
start of 2016 across 52 separate
Total funds raised (€B) or number of new funds closed

funds, although the data shows a
slowdown in number of first-time 6
funds being closed
TitleNo:
0 5.4 GroupName: Funds Closed GroupId: 434 ChartId: 146 ArticleId: 58 ChapterId:
13 2012 2013 2014 2015 2016 H1 2017
First-time
First-time funds
VC Fund - account
Raised for ~25%
First-Time ofof funds
VC Fund Establishedraised by VCs in Europe and
Firm - Raised
have Follow-on
raisedVC€3B since the start of 2016, although the data shows a
Fund - Raised
slowdown in number of first-time funds being closed

Fundsraised
Funds closed(€B) and number of funds closed per year by fund type
Note: First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating
in a different asset class, such as buyout firms.
Total funds raised (€B) or number of new funds closed
150
100
50
Note:
First-Time VC Fund of Established Firm refers
to first-time VC funds raised by a firm that
0
may already be operating in a different asset 2012 2013 2014 2015 2016 H1 2017
class, such as buyout firms.
First-Time VC Fund - Closed First-Time VC Fund of Established Firm - Closed
Source: Follow-on VC Fund - Closed
Invest Europe / EDC
Note: First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating
in a different asset class, such as buyout firms.
Even if the absolute numbers Selected first-time fund launches in Europe in 2017
have slowed, Europe continues
to see the emergence of first-
time VC fund managers targeting
a diverse set of geographies and
sectors
73
5.4 22/11/2017 The State of EuropeanThe
Atomico & Slush State of European Tech 2017
Tech 2017
2017 has seen another strong year of TitleNo: 5.4 GroupName: Default GroupId: 309 ChartId: 98 ArticleId: 58 ChapterId: 13
fundraising for European VCs
Funds raised in France, Germany and the UK account for two-thirds of
VC funds since the start of 2016, but the past few years have seen large
increases in funds raised in new geographies, including Spain,
Netherlands and beyond
Funds raised in France, Germany VCfunds
VC funds raised
raised by country
by country of GP
of GP by year by year
and the UK account for two-thirds
of VC funds since the start of 2016,
but the past few years have seen 6k
Total VC Funds Raised (€M), 2012-H1 2017

large increases in funds raised in
new geographies, including Spain,
Netherlands and beyond
4k
2k
0
2012 2013 2014 2015 2016 1H17
United Kingdom France Germany Netherlands Spain Rest of Europe

European countries can take the lead of the digital revolution. In

France alone, investments in start-ups tripled over the past three
years. More can and must be done to build the digital champions of
tomorrow, with investments in deep technologies and while keeping
in mind the requirement of digital inclusion.
Mounir Mahjoubi
French Secretary of State in charge of Digital
The sum of total funds raised is at an all-time high, but since the number
of new funds closed has not been increasing, the average fund size -
both in terms of mean and median - has increased significantly
The sum of total funds raised is Median and mean fund size
Median and mean fund size at final closing by year at final closing by year
at an all-time high, but since the
number of new funds closed has 154
not been increasing, the average 150
fund size - both in terms of mean

and median - has increased
Average fund size (€M)
significantly
100
86 85
60 58
49 52 50
European VC fund sizes 50
38 37
have increased significantly 21

25
3x 0
Median
2012
Mean
2013 2014 2015 2016 H1 2017
increase in mean VC fund size in

Europe since 2012
74
5.5
There is still work to be done to further diversify
the institutional investor base of European VC 18/11/2017 The State of European Tech 2017
The source of funds for European and US VCs differ significantly

The source of funds for European VC funds raised by LP type and region
VC funds raised by LP type and region
and US VCs differ significantly
24
Government Agencies
10
19
Family Offices & Private Individuals
17
17
Corporate Investors
5
15
Fund of Funds, Other Asset Managers
13
8
Pension Funds
20
Academic Institutions, Endowments, 6

Foundations 13
5
Banks
2
4
Insurance Companies
3
Note:
Europe data based on funds raised 3
Other (incl. Capital Markets, Sovereign
between 2012 and 1H 2017. All Wealth Funds) 16
percentages are only calculated on known
LP allocation. Unclassified allocations
were extrapolated. US VC LP allocation 0 5 10 15 20 25
based on data from Preqin % of total funds raised
Source: 18/11/2017 The State of European Tech 2017

Europe US
Invest Europe / EDC
While
Note: pension
Europe funds
data based have
on funds raised contributed
between 2012 and 1H huge sums to
2017. All percentages areEuropean buyouts,
only calculated on known LP
allocation. Unclassified allocations were extrapolated. US VC LP allocation based on data from Preqin
their contribution to VC is still small
While pension funds have Funds
Funds raised
raised bystrategy
by fund fund strategy and LP type
and LP type
contributed huge sums to
European buyouts, their 23
Government Agencies
contribution to VC is still small 2
18
Family Offices & Private Individuals
6
17
Corporate Investors
1
16
Fund of Funds, Other Asset Managers
20
8
Pension Funds
37

Foundations 6
5
Banks
4
4
Insurance Companies
11
2
Capital Markets
1
1
Sovereign Wealth Funds
13
Note:
All percentages are only calculated on known 0 5 10 15 20 25 30 35 40
LP allocation. Unclassified allocations were
% of total funds raised
extrapolated
Source: VC Funds Buyout Funds

Invest Europe / EDC
Note: All percentages are 75

only calculated on known LP allocation. Unclassified allocations were extrapolated

5.5
There is still work to be done to further
diversify the institutional investor base of
European VC TitleNo: 5.5 GroupName: First-time VC fund GroupId: 435 ChartId: 147 ArticleId: 59
ChapterId: 13
Pensions funds are, however, are more important contributors of funding

to follow-on VC funds than to first-time funds set up by new VC fund
managers
Pensions funds are, however, more Funds raised by fund type and type of LP
Funds raised by fund type and type of LP
important contributors of funding
to follow-on VC funds than to First-time VC fund
25
24
first-time funds set up by new VC
21
fund managers

20
13
10
6
5
3
2
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TitleNo: 5.5 GroupName: First-time VC funds of established firm GroupId: 781 ChartId:
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fund type and type offirm
of established LP
Note: Data based on funds raised between 2012 and 2016. First-Time VC Fund of Established Firm refers to first-time VC
funds raised by a firm that may already be operating in a different asset class, such as buyout firms
26
Corporates are an
20
18
important source of 16
capital for European VCs 11 11
€4.8B
10
5
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TitleNo: 5.5 GroupName: Follow-on VC fund GroupId: 782 ChartId: 147 ArticleId: 59
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managers
First-Time VC Fund of Established Firm
Funds raised by fund type and type of LP
Follow-on VC fund 151/241
Note: 23 VC
Data based on funds raised between 2012 and 2016. First-Time VC Fund of Established Firm refers to first-time
20
18
Source: Invest Europe / EDC 17
15
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10
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Note: Data based on funds raised between 2012 and 2016. First-Time VC Fund of Established Firm refers to first-time VC
76
5.5 22/11/2017 The State of European Tech 2017

diversify the institutional investor base of TitleNo: 5.5 GroupName: Default GroupId: 289 ChartId: 89 ArticleId: 59 ChapterId: 13
European VC
The dependency on governments as a source of capital declines with
larger fund size, while the contribution from pension funds and other
institutional LP types increases thanks to the ability to deploy larger
cheque sizes into the funds
The dependency on governments VCfunds
VC funds raised
raised bysize
by fund fundandsize and LP type
LP type
1578
as a source of capital declines 6335

with larger fund size, while the
2328
3
contribution from pension funds Foundations
2328
9
23
and other institutional LP types 5328
7
increases thanks to the ability to 3453 Banks 2
5
0
deploy larger cheque sizes into the
funds Capital Markets
2
3
0
16
Corporate Investors 19
11
27
2328
24
Family Offices & Private Individuals 2328 16
14
8
9
Fund of Funds, Other Asset Managers 14
33
12
32
Government Agencies 21
13
15
3
Insurance Companies 7
4
Pension Funds 9
13
Sovereign Wealth Funds 0

2
0 5 10 15 20 25 30 35
%
<€100M €100-250M €250-500M €500M+
Note: Based on total funds raised between 2012 and 2016. All percentages are only calculated on known LP allocation.
Unclassified allocations were extrapolated
Source: Invest Europe
5493
The role of public funding in Europe has been important in ensuring
sufficient capital availability in the early and growth stages. As
evidenced by increasing valuations of marquee companies, Europe
has been able to close the gap compared to leading technology
ecosystems in the world. This is already bringing more private
investment into VC funds and innovative companies, which should be
the first and foremost objective of our public funding initiatives.
Alex Stubb
European Investment Bank
328
45,023
77
0

diversify the institutional investor base of TitleNo: 5.5 GroupName: Default GroupId: 295 ChartId: 92 ArticleId: 59 ChapterId: 13
European VC
While European buyout funds raise a significant share of capital from
international LPs, European VC funds are overwhelmingly raised from
within the region
Funds raised by fund strategy and region of LP
While European buyout funds raise Funds raised by fund strategy and region of LP
a significant share of capital from
100
international LPs, European VC
funds are overwhelmingly raised
from within the region
75

50
25
0
VC Funds Buyout Funds
Europe North America Asia & Australasia Rest of World

Note: Total funds raised between 2012 and 2016. All percentages are only calculated on known LP allocation. Unclassified
allocations were extrapolated

This varies, however, depending on the fund size. Larger funds of
€250M+ raise a much larger share of capital from outside the region,
where investors are typically looking to deploy larger cheque sizes
This varies, however, depending Funds
Funds raised by VC
raised byfund
VCsize
fundandsize
location
andof location
LP, sum of 2012-2016
of LP, sum of 2012-2016
on the fund size. Larger funds of
€250M+ raise a much larger share 100
4 4
of capital from outside the region,
where investors are typically 35
28
looking to deploy larger cheque 75

sizes
50
96 96
72
65
25
0
<€100M €100-250M €250-500M €500M+
LPs from outside Europe LPs from inside Europe
Note: All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated
There is an increased interest from institutional investors in Oscar Farres

European venture capital, driven by higher expectations of financial European Investment Fund
returns from European tech and the low interest rate environment,
which has turned the attention of these investors towards alternative
assets. We have noticed as well an increased interest from non-
European institutional investors - notably sovereign wealth funds - in
recent years, which reinforces the message that European tech is
drawing worldwide attention.
78
06
1578
2328 6335
2328
5328
3453
Deep Tech 2328

2328
Last year, the standout finding from this

report was that deep tech was thriving and
diversifying across the continent
In 2016, we discovered deep tech firms attracting large amounts of

investment and interest from US and Asian tech giants as well as
European corporates.
Has Europe been able to maintain its deep tech momentum, have
its deep tech roots deepened or broadened across the region and is
Europe taking a lead in any particular area of deep tech?
5493
6335
2328
2328
45,023
6.1
European deep tech continues
to attract large investment 22/11/2017 The State of European Tech 2017
Europe is on track for $3.5B invested into deep tech companies in 2017
Europe is on track for $3.5B Capitalmore
across invested ($B) deals
than 600 in and # of deals closed by European deep
to be invested into deep tech tech companies
Capital invested ($B) in and # of deals closed by European deep tech companies
companies in 2017 across more
than 600 deals 4 750
692 3.5
3.2 549 600
2.5
2.4 450
# of rounds
359
1.9
1.6 300
220
0.9
120 0.8
0.8 150
0.4
Note:
2017 based on 9M to September 2017 and 0 0
projection for Q4 2017 based on Q3 2017 2012 2013 2014 2015 2016 2017
Source: Capital invested ($M) # of rounds

Dealroom.co
TitleNo: 6.1 GroupName: Capital invested GroupId: 869 ChartId: 244 ArticleId: 61
ChapterId: 14
Source: Dealroom.co
European AI companies have#raised than
moreby $4.6B since 2012 across
European AI companies have Capital invested ($B) and of deals deep tech sub-category
raised more than $4.6B since over 1,000 deals
2012 across over 1,000 deals Capitalinvested
Capital invested($B) and # of deals by deep tech sub-category
4.6
4
4
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e
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# of deals 80
6.1
European deep tech continues to attract large 22/11/2017 The State of European Tech 2017
investment
TitleNo: 6.1 GroupName: Top 10 countries GroupId: 874 ChartId: 245 ArticleId: 61
ChapterId: 14
Deep tech companies based in the UK, France and Germany lead the way
Deep tech companies based in in attracting
Capital capital
invested investment
($B) in European deep tech companies by country
the UK, France and Germany Capital invested ($B) in European deep tech companies by country
lead the way in attracting Top 10 countries
capital investment
4k

1578
3k 2,400
2328 6335
2k 2328
5328
1k 1,006 3453
1,801 883
509 400 349 339 213 166 199 195 207

0 The State of European Tech 2017
22/11/2017
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TitleNo: 6.1 GroupName: Countries 11-20 and Rest of Europe GroupId: 876 ChartId: 245
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Deep tech companies based in the UK, France and Germany lead the way 2328
2012-2016 2017
in attracting capital investment
2328
Capital invested ($B) in European deep tech companies by country

Countries
Note: 201711-20 and
based on the
9M to rest of2017
September Europe
and projection for Q4 2017 based on Q3 2017
Source: Dealroom.co
150
89
100 91
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Dealroom.co
Source: Dealroom.co
The next stage of the Information Revolution is underway, made

possible by rapid technological progress that is changing every
industry and creating new ones. Europe is particularly well placed
to take advantage. Last year, this report highlighted the growing
strength of deep tech in Europe. This was no surprise to us at
SoftBank. In the last 18 months alone we invested in some of
5493
Europe’s most exciting deep tech companies, ARM and Improbable.
David Thevenon
SoftBank
2328
2328 81
European deep tech continues to attract large

investment TitleNo: 6.1 GroupName: Default GroupId: 532 ChartId: 171 ArticleId: 61 ChapterId: 14
European entrepreneurs continue to form deep tech companies at very

high levels, led by companies focused on AI
Number of European deep tech companies founded per category
Number of European deep tech companies founded per category per year
per year
European entrepreneurs
continue to form deep tech 600
companies at very high levels,

led by companies focused on AI 500
Number of companies founded

400
300
200
100
0
2012 2013 2014 2015 2016
Artificial Intelligence AR & VR Robotics Blockchain Autonmous Vehicles
Note: There is typically a lag between a company being founded and it being recognised in private company databases. As
such, more recent cohorts likely under-represent actual company formation.
Source: Tracxn
Europe’s most promising deep Selected investment rounds raised by European deep tech
tech companies are raising large companies in 2017
rounds and actively choosing to
stay independent to continue
to build and take on global
opportunities
Note:
There is typically a lag between a company
being founded and it being recognised in
private company databases. As such, more http://preview.stateofeuropeantech.com/all-charts/ 158/241
recent cohorts likely under-represent actual

company formation.
Source:
Tracxn
European entrepreneurs are catalysing the development of AI

technology and the proliferation of AI-powered applications. As AI
reaches an inflection point in adoption, early-stage AI companies
will empower buyers that have the vision to embrace them and
disrupt those that do not. With 900 AI startups (70% of the US total),
world-class talent (a quarter of the world’s top 50 universities) and
a flourishing ecosystem for entrepreneurship, Europe has much to
contribute as we move to a world that is AI-first.
David Kelnar
MMC Ventures
82
6.2
AI & crypto are seen as major
opportunities for European tech
leadership on the global stage
AI & blockchain are viewed In &

AI which one area
blockchain are of technology
viewed is Europe
as the areas best
where positioned
Europe to become
is best-positioned
as the areas where Europe is a world leader over the next
to attain world-leading status five years?
best-positioned to attain world-
In which one area of technology is Europe best positioned to become a world leader over
leading status Occupation
the next five years?
27
21
20
% of respondents
20
18
17
15
12
11
10
8 8
7
6 6 6
4 4
3 3
2 2 2
1
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Q
Investors Founders

AI & blockchain are viewed as the areas where Europe is best-positioned
to attain world-leading status
InGeography
which one area of technology is Europe best positioned to become a world leader over
the next five years?
35
30 28
% of respondents
25
20 21
20
17 17 17 18
16
14 14 14
12 11
10
10 8 8 8
7 7
6 6 6 6
4 4 5 4 4 5 4
3 3 3
2 2
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UK & Ireland France & Benelux DACH Nordics Baltics Southern Europe
Central & Eastern Europe Europe
83
6.2
AI & crypto are seen as major opportunities for

European tech leadership on the global stage
The UK and Germany are viewed Most cited responses for question: which European country do you
as the two countries best think is best placed to capture this opportunity?
positioned within Europe to
build world-leading positions in
key deep tech fields

The blockchain boom certainly is coming - and London is in a great

position to capitalise on it. The bristling tech scene in London
combines strong support for innovation and new startups with
a magnetism for top tech talent from around the globe. There
are several prestigious universities here which are and will be
undertaking cutting edge academic research in the blockchain space.
Angus Maidment & Alastair Band

Blockchain Beginners London (Meetup group)
Berlin is, or at least used to be, the single place in Europe that was
still cheap, a bit edgy, married to the slightly anarchist outlook of
crypto. It’s a great place for people who want to change things to
establish an office and work from here. London is much more in line
with the establishment, they still want to disrupt but not really.
Jutta Steiner
Parity Technologies
84
6.2
AI & crypto are seen as major opportunities for
European tech leadership on the global stage
Germany is perceived to be a clear leader amongst European countries in

the race to build a world-leading position in autonomous vehicles and
robotics, but in other fields there is a much greater distribution of votes
Germany is perceived to be a between
Which onedifferent countries
European country do you think is best placed to capture
clear leader amongst European this opportunity?
Which one European country do you think is best placed to capture this opportunity?
countries in the race to build
a world-leading position in
Autonomous Vehicles - Germany 84
autonomous vehicles and
robotics, but in other fields there
is a much greater distribution Robotics - Germany 69
of votes between different

countries Quantum Computing - Germany 35
Genomics - Germany 30
Artificial Intelligence - United Kingdom 29
Augmented Reality - Germany 28
Cybersecurity - Germany 24
Crypto/blockchain - United Kingdom 22

Virtual Reality - Germany 22
Drones - France 21
0 10 20 30 40 50 60 70 80 90
% of respondents voting for #1 most cited country
% of non-partisan responses for #1 country
Note: Ranking based on votes from respondents choosing a country home than their home country only
There is a density of machine learning talent in London that rivals even

the Valley. Every year UK universities produce a roster of world-class
machine learning engineers, coming straight out of the most innovative
labs. To maintain the momentum in European AI, we’ll need to keep
up that flow of expert and ambitious engineers, both by ensuring
continued investment in higher education, and by guaranteeing that
engineers are supported through accelerators once they graduate.
Barnaby Hussey-Yeo
Cleo
85
6.3
Europe is home to the world’s
leading AI research community
Europe is home to the largest European organizations in the Top 100 ranked organizations by most-
share of the top 100 AI research cited AI-related research papers
institutions worldwide
Source: The Nikkei & Elsevier
Europe accounts for largest

share of top 100 AI research
institutions worldwide
32
research institutions in the
global top 100 for AI-related
research paper citations vs 30
from the US and 15 from China
86
6.3
Europe is home to the world’s leading AI

research community
1578
6335
2328
European research in deep tech is at a crossroads, and we strongly 2328
believe that greater collaboration between public and private bodies 5328
is key to ensure it continues to thrive. Europe is currently taking 3453
action to enable this by developing a framework for public-private

partnerships, which is a step in the right direction. Facebook Artificial
Intelligence Research (FAIR) Paris is an example of this approach in
action. We hope that FAIR, in close cooperation with public universities
and institutes such as INRIA or Pierre et Marie Curie University,
proves how impactful and effective this public-private cooperation 2328
can be. Our model has allowed us to grow in two years from five to 2328
forty researchers from across Europe, despite a very selective hiring

process, and will help us continue to develop our FAIR lab in Paris.
Antoine Bordes
Facebook Artificial Intelligence Research
There has been an explosion of events to bring together Europe's AI

community
There has been an explosion of Number of machine learning-related Meetup events by year
Number of machine learning-related Meetup events by year
events to bring together Europe’s
AI community
6,215
6k
Number of machine learning-related Meetups
4,330
4k
2k 1,927
925
413
170
0
2012 2013 2014 2015 2016 2017
5493
Machine Learning
6335
Note: 2017 data annualised based on data to 30 September 2017
Source: Meetup
2328
2328
45,023
87
6.3

research community
London and Paris are Europe’s Top 15 European hubs of AI talent

two leading hubs for AI talent
Top cities by number of LinkedIn members with AI skills
8
6335 Top cities by density of members with AI skills versus all LinkedIn members
328
2328
2328
Note: Cities with >450k members only so excludes cities such as Cambridge and Oxford.
Cambridge would be 16th in absolute terms and first by density. Oxford would be 28th
and fourth by density.
Source: LinkedIn
88
6.3

research community
The war for AI talent has seen Top 10 most in-demand technologies in Europe
Python rise to number three
most in-demand programming
language in Europe
Source: Stack Overflow

Top 10 most in-demand Top 10 most in-demand technical roles at technology companies in
programming languages in the UK and France
Europe, as sought by employers
Source: Hired
Photo: Sami Heiskanen 89

6.4
Europe is well-positioned to
play a key role in crypto space
TitleNo: 6.4 GroupName: Blockchain GroupId: 275 ChartId: 82 ArticleId: 64 ChapterId: 14

There has been an explosion of Number of views of blockchain-related question tags on Stack
There has been an explosion of European developer engagement with
European developer engagement Overflow by topic
cryptocurrencies, most notably on Ethereum-related topics
with cryptocurrencies, most
notably on Ethereum-related Number of views of blockchain-related question tags on Stack Overflow by topic
Blockchain
topics
15k 14,500
13,029
11,608
Number of views
10k
8,243
6,770
5,318
5k
3,631
2,575
2,052
22/11/2017 The State of1,372
European Tech 2017
592 628 853
110 173 155 223 357
0
TitleNo: 6.4 GroupName: Ethereum GroupId: 766 ChartId: 82 ArticleId: 64 ChapterId: 14
Aug 2017
Sep 2017
Jun 2017
Jul 2017
Apr 2017
May 2017
Mar 2017
Nov 2016
Dec 2016
Jan 2017
Feb 2017
Oct 2016
Aug 2016
Sep 2016
Jun 2016
Jul 2016
Mar 2016
Apr 2016
May 2016
Jan 2016
Feb 2016
Nov 2015
Dec 2015
Sep 2015
Oct 2015
Jul 2015
Aug 2015
Jun 2015
Feb 2015
Mar 2015
Apr 2015
May 2015
Jan 2015
1578
6335
cryptocurrencies, most notably on Ethereum-related topics
2328
Blockchain
Number of views of blockchain-related question tags on Stack Overflow by topic
2328 Ethereum
5328
20k 19,290 19,420
3453 17,691
15k
Number of views
10k 9,751
2328 6,098
2328 5k 3,980 4,310
3,427
2,982
2,513 2,492
1,593
22/11/2017 0 0 0 0 0 2 0 353 671 The State of European Tech 2017
0
Sep 2017
Jul 2017
Aug 2017
Mar 2017
Apr 2017
May 2017
Jun 2017
Jan 2017
Feb 2017
Nov 2016
Dec 2016
Oct 2016
Aug 2016
Sep 2016
Jun 2016
Jul 2016
Apr 2016
May 2016
Jan 2016
Feb 2016
Mar 2016
Nov 2015
Dec 2015
Aug 2015
Sep 2015
Oct 2015
Jul 2015
May 2015
Jun 2015
Mar 2015
Apr 2015
Jan 2015
Feb 2015
TitleNo: 6.4 GroupName: Bitcoin GroupId: 765 ChartId: 82 ArticleId: 64 ChapterId: 14

cryptocurrencies,
Ethereum most notably on Ethereum-related topics
Bitcoin of views of blockchain-related question tags on Stack Overflow by topic
Number

25k 24,246
22,042
20k 18,842
Number of views
15,889
15k
11,794
10,411
10k
7,824 7,567 7,999 8,365
7,435 7,625
6,177 5,784 6,075
5,042
5k
0
Aug 2017
Sep 2017
Jun 2017
Jul 2017
Mar 2017
Apr 2017
May 2017
Jan 2017
Feb 2017
Nov 2016
Dec 2016
Aug 2016
Sep 2016
Oct 2016
Jun 2016
Jul 2016
Apr 2016
May 2016
Jan 2016
Feb 2016
Mar 2016
Nov 2015
Dec 2015
Aug 2015
Sep 2015
Oct 2015
Jul 2015
May 2015
Jun 2015
Feb 2015
Mar 2015
Apr 2015
Jan 2015
Source: Bitcoin
Stack Overflow

90
6.4
Europe is well-positioned to play a key role in

crypto space
Europe is the largest source of reachable nodes on the Bitcoin network

Europe is the largest source of Global distribution of reachable Bitcoin nodes by region
Global distribution of reachable Bitcoin nodes by region
reachable nodes on the Bitcoin
network
Europe 5,221
US 3,375
China 622
Japan 142
Korea 106
Rest of world 1,162
Note:
Data as of 31 October 2017
# of Bitcoin network nodes
Source:
Bitnodes
Note: Data as of 31 October 2017
Source: Bitnodes
When it comes to Europe, the cultural and economic diversity, as well

as a world class heritage in adjacent sectors like gaming and asset
management coupled with a large tech talent pool, play strongly in
favour of driving growth in this space. We are seeing a vibrant crypto
ecosystems developing in places like Berlin, Paris, Lisbon, Barcelona,
Eastern Europe, and the Baltics.
Stefano Bernardi & Yannick Roux

Token Economy
Europe has traditional strength in cryptography, with key figures

from the International Association for Cryptologic Research, being
from European Academic institutions, and industry clusters relying
on cryptographic expertise in France, Denmark, Estonia, Belgium and
Switzerland. The designers of both US standard hash function and
block cipher are European – a testament to this expertise (AES and
SHA3). Europe is especially strong in symmetric cryptography and
embedded systems. Ironically, the depth of expertise around crypto in
Europe is associated historically with the US export control regimes on
cryptography.
George Danezis
University College London
91
6.4

crypto space
The UK, Germany and Russia Number of blockchain development projects by country
are the most active blockchain
developers on GitHub
European developers are

hugely actively in driving
blockchain development
8,265
active blockchain projects in
Europe (versus 9,565 in US),
Note: Analysis is presented for GitHub projects for which geographical information is available
according to Deloitte analysis of
GitHub data Source: Deloitte analysis of GH Torrent data and GitHub API data

6.4

22/11/2017
22/11/2017
22/11/2017
crypto space TheThe
State
TheState
State
of European
ofofEuropean
European
TechTech
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20172017
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TitleNo:
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blockchain
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blockchain development
Top 30 European cities for blockchain development

Top
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3030
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European
Europeancities
cities
cities
forfor
for
blockchain
blockchain
blockchain
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914914
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298298
298
201201
201
132132
132
104104
104
92 92
92
89 89
88
89 88
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78 78
77
78 77
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72 72
72 63
63 63
61 61
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60 60
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57 57
50 50
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44 44
41 41
41 38
38 38
35 35
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Note: Analysis is presented for GitHub projects for which geographic information was
available. Berlin is notably absent and is likely due to the absence of city-
level information for 1,069 projects in Germany
Note:
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Given how people in Europe look at things like data protection,

there’s a stronger sense of urgency here than somewhere like the
US to find solutions. But for entrepreneurs it’s really hard to run a
business in this space. There’s currently no certainty, neither for the
entrepreneurs nor the establishment, on what we can do and could
do. There are things like regulatory sandboxes that people try but
I am not convinced these will work, since ultimately you need to
get out of the sandbox and will then face the same problems again.
It’s important that policymakers are really understanding what this
technology is and do not regulate too early, giving startups a certain
certainty that they would not get punished for what they are doing.
Jutta Steiner
Parity Technologies
93
6.5
Europe leads the race to tokenize 22/11/2017 The State of European Tech 2017
assets and the ICO fundraising boom TitleNo: 6.5 GroupName: Default GroupId: 704 ChartId: 232 ArticleId: 84 ChapterId: 14
Differences in national regulatory frameworks mean that one in four ICO

projects is legally registered in a different county to that of its
CEO/Founder
Differences in national regulatory Share
Share of ICO
of ICO projects
projects whereoflocation
where location legal entityof
is legal entity
different is different
to location to
of CEO/Founder
frameworks mean that one location of CEO/Founder
in four ICO projects is legally
100
registered in a different county
to that of its CEO/Founder
75
% of ICO projects 66 62
67
63
75 75
80
50
25
34 38 38
33
25 25
20
0
All ICOs Europe North America Asia Latin America Middle East Africa
CEO/Founder and legal entity location are the same CEO/Founder and legal entity location are different
Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Data is based on ICO
22/11/2017 The State
projects where the legal entity and CEO/Founder of European
location Techknown
are both 2017
Source: TokenData
There are more ICO projects coming from Europe-based entities and
European founders than any other region
There are more ICO projects Number
Number of projects
of ICO ICO projects
by regionby region
of legal ofversus
entity legalregion
entityof versus region of CEO/
CEO/Founder
coming from Europe-based Founder
entities and European founders 533
than any other region
500
446
412
Number of ICO projects
400
373
300
244
234
200
124
105
100
19 28
16 15 13 10
0
Europe North America Asia Middle East Latin America Africa Unknown
Number of ICO projects by region of legal entity Number of ICO projects by region of CEO/Founder
Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Unknown captures all
ICOs where the region of the legal entity or of the CEO/Founder is not known
Source: TokenData
Looking beyond the exponential increase in capital and Ricky Tan

cryptocurrency assets in 2017, we see a pattern of geographical Token Data
diversity between ICO founding teams and also within the teams
themselves. If the future of business ideas lies in decentralisation,
then decentralised founding teams will be a key aspect of it.
94
6.5
Europe leads the race to tokenize assets and 22/11/2017 The State of European Tech 2017
the ICO fundraising boom
While entities registered in Europe have raised the most capital via ICOs,
founders from North America have marginally out-raised those from
Europe
While entities registered in Total capital raised ($M) via ICOs by region of legal entity versus
Total capital raised ($M) via ICOs by region of legal entity versus region of CEO/Founder
Europe have raised the most region of CEO/Founder
capital via ICOs, founders from
1,755
North America have marginally
out-raised those from Europe
1500
1,315
Total capital raised ($M)

1,226
1,076
1000
Switzerland’s openness 596
to ICOs has attracted ICO 500 453
projects that have raised 286 277

178 177
227
significant capital 29 48
6
$529M
0
North America Europe Asia Latin America Middle East Africa Unknown
Total capital raised ($M) via ICOs by region of legal entity

Total capital raised ($M) via ICOs by region of CEO/Founder
raised by ICO projects registered

in Europe but whose founders ICOs where the region of legal entity or of the CEO/Founder is not known
are based elsewhere

Source: TokenData
Switzerland is a leading home to the legal entities behind ICO projects,

but not always to their founders
Switzerland is a leading home Top 10 countries by capital raised ($M) via ICO based on country of
Top 10 countries by capital raised ($M) via ICO based on country of legal entity location and
to the legal entities behind ICO legal entity location and country of CEO/Founder location
country of CEO/Founder location
projects, but not always to their
founders
905
USA
1,131
828
Switzerland
104
325
Singapore
373
208
UK 178/241
372
202
Cayman Islands
Canada
185
128
Russia
197
105
Germany
54
France
53
Note: Serbia
2
Geographical data sourced by TokenData from
ICO websites, white papers and social media 0 200 400 600 800 1000 1200
Capital raised ($M)
Source:
TokenData
Capital raised ($M) - Legal entity Capital raised ($M) - CEO/Founder
Source: Token Data

95
6.5
Europe leads the race to tokenize assets and

the ICO fundraising boom
The ICO fundraising model has allowed founders from

around the world to raise capital
Map of funds raised ($M) via ICO by country

6.5

the ICO fundraising boom 22/11/2017 The State of European Tech 2017
Central & Eastern Europe dominates the number of ICO projects

launched from Europe
Central & Eastern Europe Number of ICO projects in Europe by sub-region of legal entity
dominates the number of ICO Number
versusofCEO/Founder
ICO projects in Europe by sub-region of legal entity versus CEO/Founder
projects launched from Europe
171
162
150

100
90
78
66
50 48 46
37 35
25 24
19
10 8
0
Central & UK & Ireland DACH France & Southern Baltics Nordics
Eastern Europe Benelux Europe
Number of ICO projects by sub-region in Europe of legal entity

Number of ICO projects by sub-region in Europe of CEO/Founder
ICOs where the region of the legal entity or of the CEO/Founder is not known
Source: TokenData
...but looking at the sum of capital raised by founders, the UK is just

...but looking at the sum of ahead of CEE raised ($M) via ICOs in Europe by sub-region of legal
Total capital
capital raised by founders, the entity versus
Total capital raisedCEO/Founder
($M) via ICOs in Europe by sub-region of legal entity versus CEO/Founder
UK is just ahead of CEE
1000 976
Total capital raised ($M)
750
500
369 373
271
250 209 211
111 93 92 97
60 73
31 15
0
Central & UK & Ireland DACH France & Southern Baltics Nordics
Eastern Europe Benelux Europe
Total capital raised ($M) via ICOs by sub-region in Europe of legal entity
Total capital raised ($M) via ICOs by sub-region in Europe of CEO/Founder
Note: Geographical data sourced by TokenData from ICO websites, white papers and social media
Source: TokenData
97
0
6.5

the ICO fundraising boom 22/11/2017 The State of European Tech 2017
European cities make up 5 of the Top 10 hubs globally for ICO projects,
including the #1 hub
European cities make up 5 of Top 10 cities by number of ICO projects based on location of CEO/
Top 10 cities by number of ICO projects based on location of CEO/Founder
the Top 10 hubs globally for ICO Founder
projects, including the #1 hub 50 48
40 38

1578
30 2328 6335
27
2328
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20
5328
13
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10 9
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ris
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ew
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2328
Number of ICO projects 2328
Note: Geographical data sourced by TokenData from ICO websites, white papers and social media
Source: TokenData
But this is an area where everything is distributed, including the teams.

Two out of three ICO projects have founding teams located in different
countries
But this is an area where Share of ICO projects where founders are distributed in different
everything is distributed, Share of ICO projects where founders are distributed in different countries
countries
including the teams. Two out of
three ICO projects have founding 100
teams located in different
countries 35
29
36 38
75 50
54 56
% of ICO projects
50
71
64 65 63
25 50
46 44
0
All ICO projects Europe North America Asia Latin America Middle East Africa
Founders are located in same country Founders are located in different countries
5493
Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Based on stated location
of founders. ICO projects are considered to have distributed founding teams where at least two founders are located
in different countries
Source: TokenData
2328
2328 98
07
1578
2328 6335
2328
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3453
Corporate 2328
2328
Last year we discovered how European

corporates were awakening to tech and
realising its potential and opportunity
This year we are seeing clear signs that this trend is evolving at
pace. Across the board, Europe is playing to its traditional strengths
and industrial heritage, and the relationship between old and new
industry is now characterised by partnership and collaboration.
5493
6335
2328
2328
45,023
7.1
The perception in Europe’s tech industry is
that startups need to forge closer ties with
traditional industry
Europe is united behind the Europe is unitedtech

The European behind the idea needs
ecosystem that the region'sties
stronger techwith
startups need
traditional
idea that the region’s tech stronger ties
industries with traditional industries
startups need stronger ties with The European tech ecosystem needs stronger ties with traditional industries
Occupation
traditional industries
56 57 58 58 56
53 60
50 49 48
% of respondents
25
2 2 2 2 1 1 1 2 1
0
h)
ee
er
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or
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)
co
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th
st
oy
oy
ud
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te
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em
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(n
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(p
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ee
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bl
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em
pa
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ny
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pa
m
Co
Europe is united behind the idea that the region's tech startups need
stronger ties with traditional industries
Geography
The European tech
of founders ecosystem
answering needs
1 or 2 on the same stronger
scale ties with traditional industries
60 The State of European Tech Survey 2017

Source: 56 56
49
47
45 44
41
% of respondents
40 38
20
5 5 6 5 6
4 4
2
0
pe
nd
CH
cs
cs
pe
pe
lu
di
lti
ro
ro
ro
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ne
Note:
or
Ba
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Eu
Eu
Eu
Be
N
&
rn
Strongly agree is composed of respondents

&
er
K
he
ce
U
st
ut
answering 6 or 7 on a 7-point Likert scale.

an
Ea
So
Fr
l&
Strongly disagree is composed of founders

ra
nt
answering 1 or 2 on the same scale

Ce
Source: Strongly agree Strongly disagree

I think that
Source: The Statetraditional industries
of European Tech Survey 2017 are fuelling the European tech
ecosystem in three ways. First, they can be direct investors in
startups. Second, these big companies are pools of talents for
startups. They have recruited and trained highly skilled engineers and
invested a lot in R&D, which contributes to the deep tech disruptions.
Finally, the existence of strong historic players in key sectors such as
automotive stimulates a new generation of leading innovative players
to provide tomorrow’s solutions.
Fleur Pellerin
Korelya Capital
100
7.2
Europe’s corporates are battling to defend
trillions of dollars of enterprise value
Trillions of dollars in enterprise value could be put in play

Trillions of dollars in enterprise Aggregate market cap ($T) for European-listed public companies by
Aggregate market cap ($T) for European-listed public companies by selected industry
value could be put in play selected industry sectors
sectors
Industrial Goods & Services 2
Banks 2
Healthcare 1.6
Oil & Gas 1.2
Food & Beverage 1.1

Insurance 0.7
Retail 0.6
Automobiles & Parts 0.5
0 0.25 0.5 0.75 1 1.25 1.5 1.75 2

Market cap ($T)
Market cap ($T)
Note: Market cap as of 30 September 2017
Source: London Stock Exchange
Most of these traditional companies have created innovation teams

that actively look for collaboration with interesting tech companies -
for example, with companies focused on deep tech - and are looking
for ways to introduce these technologies into their standard offerings
and make their companies smarter. That’s a great opportunity for
technology companies in Europe today.
Samuel Mueller
Scandit
101
7.2

European corporates have different levels of focus and engagement with
Europeantechnology
European corporates have different levels of focus and engagement with
European corporates have European technology
Innovation activity of top European corporates
Innovation activity of top European corporates
different levels of focus and Innovation activity of top European corporates
engagement with European
technology
Have established a dedicated open
Have established ainnovation
dedicated open
84
unit
84
innovation unit
Procured from startups/scaleups 84

Procured from startups/scaleups 84
They are doing all the things now

Invested in startups/scaleups 71
- running accelerators, investing Invested in startups/scaleups 71
in funds. In our fund, we have at
least twenty corporates and two Run an accelerator 52
Run an accelerator 52
thirds of those are from France.
You go to Station F and when
Invest via a dedicated Corporate VC fund 50
you walk through the building, Invest via a dedicated Corporate VC fund 50
there are corporate names

everywhere, everyone wants to Acquired at least one startup/scaleup in
Acquired at least one startup/scaleup in
2016
36
36
2016
launch there - there are twenty
corporate accelerators in the
building. Eventually this is getting 00 20
20 40
40 60
60 80
80
% of top
top European
European corporates
corporates
the startup and the corporate % of
world closer. %%ofofTop

TopEuropean
EuropeanCorporates
Corporates
Romain Lavault
Partech Ventures Note:
Note: Based
Basedon
onan
ananalysis
analysisofof32
32leading
leadingEuropean
European corporates
corporates
Source: Open
Source: OpenInnovation
InnovationininEurope.
Europe.AASnapshot
Snapshot of
of 2017
2017 SEP
SEP Europe’s
Europe’s Corporate
Corporate Startup
Startup Stars.
Stars.Mind
Mindthe
theBridge
Bridge&&Nesta,
Nesta,2017
2017
Leading European startups are Selected partnerships between European tech companies and
building meaningful partnerships incumbent corporates announced in 2016 or 2017
with corporates for mutual
benefit
It’s an interesting one for us because we have limited activity in Benjamin Lickfett
actual corporate investment. For us we take a broader, portfolio Diageo
approach in terms of partnerships, looking at strategically
interesting companies that we can partner with. I think there are
different ways we can extract value from it and we can deliver value
to the startups. One way is certainly equity and direct investment
but there are obviously other areas where we can get value out of
it, too. Exclusivity in our category or long-term commitment and
investment in the actual partnership.
102
7.2

There is a wide variance in the level of media coverage that different
European corporatesThere
haveis a wideinvariance
received in the level
articles discussing of media
technology coverage that different
European corporates have received in articles discussing technology
Most cited STOXX Europe 50 constituents in media articles
discussing “technology”
Most cited STOXX Europe 50 constituents in media articles discussing "technology"
BMW 100
Nokia 97
SAP 91
Deutsche Bank 68
Daimler 67
Airbus 53
Siemens 51
Orange 43
BNP 41
Unilever 39
Adidas 34
Telefonica 34
Deutsche Telekom 29
LVMH 23
Allianz
AXA 22
Bayer
Santander 20
Volkswagen
ING Group 16
Vivendi 13
Engie 13
BASF 10
Sanofi
BBVA 9
Safran
9
Groupe Danone 9
Societe Generale 8
Schneider Electric 8
Deutsche post 7
Philips 6
ASML 6
L'Oreal 6
Inditex 6
Essilor 5
Air Liquide 5
Fresenius 5
Anheuser 4
Intesa Sanpaolo 4
Saint-Gobain 4
Munich Re 4
Eni 3
E.ON 3
Enel 3
Total S.A. 3
Unibail-Rodamco 3
Iberdrola 3
Ahold 2
Vinci 1
0 10 20 30 40 50 60 70 80 90 100 110
Article count indexed to #1 most cited company
# of citations, indexed to #1 most cited (BMW)
Note: Company list based on STOXX Europe 50 consituents as of 30 September 2017. Article count based on unique articles
containing "technology" and named company. Overall source set based on representative list of 100 European
business and tech publications
Source: Signal
If you think about well-established companies, ten years ago they

were saying that there might be a big tech company in the future
- whereas now they think “Guys, we need to put technology at the
heart of our business or otherwise we’re going to be killed.” It’s the
beginning of a new era.
Juan Urdiales
Jobandtalent
103
7.3
Spotting patterns in the flow of talent
between tech & traditional industry
Professional and financial services are the most For additional context, it is worth analysing a
important source sectors of tech industry talent, similar dataset covering tech talent movement in
but there are material numbers coming from 2016 provided by LinkedIn for last year’s State of
sectors such as retail and auto
European Tech
Professional andsectors
financial services are the most important For additional context, it is worth analysing a similar dataset covering
Top source for inbound tech talentsource Top 10 source sectors for inbound tech talent
sectors of tech industry talent, but there are material numbers coming
(“joiners”) by industry
from sectors such as retail and auto (“joiners”) by industry in 2016
of European Tech
Top 10 source sectors for inbound tech talent ("joiners") by industry Top 10 source sectors for inbound tech talent ("joiners") by industry in 2016
Professional Services 21.6 Professional Services 21.7
Financial Services & Insurance 13.1 Financial Services & Insurance 12.9
Retail & Consumer Products 9.8 Government/Education/Non-profit 9.4
Government/Education/Non-profit 9.2 Retail & Consumer Products 9.3

Telecommunications 7.9 Telecommunications 9
Media & Entertainment 7.5 Media & Entertainment 7.5
Aero/Auto/Transport 6.2 Aero/Auto/Transport 5.9
Architecture & Engineering 5.3 Technology - Hardware 5.2
Technology - Hardware 5.1 Architecture & Engineering 5
Healthcare & Pharmaceutical 4.9 Healthcare & Pharmaceutical 4.7
0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5
% of joiners % of joiners
2017 2016
Note: Note:
All interpretations
Note:
of the LinkedIn data are made by Atomico, not
All interpretations
Note: All interpretations of of the LinkedIn
the LinkedIn data are madedata arenotmade
by Atomico, LinkedIn. by Atomico,
A ‘mover’ not
is defined by LinkedIn as
LinkedIn. A ‘mover’
somebody now working
isin defined bythat
the tech industry LinkedIn as somebody
has moved country or industry sectornow working
for their in
primary employment LinkedIn. A ‘mover’ is defined by LinkedIn as somebody now working in
the tech industry that has moved country or industry sector for their the tech industry that has moved country or industry sector for their
primary employment between 2017 and 2016
Source: LinkedIn primary employment between 2016 and 2015
Source: LinkedIn
Source: Source:
LinkedIn LinkedIn
If you look at Europe, you have a combination of world class universities and world
class companies historically building world class products, be that supplying to the US
or elsewhere. What we as entrepreneurs and young startups are now benefiting from
is that knowledge and those people who have worked in those industries - they’re
coming on board and building the next generation of technologies.
Remo Gerber
Lilium Aviation
104
7.3
Spotting patterns in the flow of talent between

tech & traditional industry
The auto sector is attracting a meaningful share of For additional context, it is worth analysing a
talent from the European tech industry, although similar dataset covering tech talent movement in
companies in professional and financial services 2016 provided by LinkedIn for last year’s State of
are the biggest destination for outbound tech European Tech
talent
The auto sector is attracting a meaningful share of talent from the For additional context, it is worth analysing a similar dataset covering
Top destination sectors for outbound tech talent Top 10 destination sectors for outbound tech
European tech industry, although companies in professional and
(“leavers”) byare
financial services industry
the biggest destination for outbound tech talent talent (“leavers”)
of European Tech by industry in 2016
Top destination sectors for outbound tech talent ("leavers") by industry Top 10 destination sectors for outbound tech talent ("leavers") by industry in 2016
Professional Services 21.2 Professional Services 21.1
Financial Services & Insurance 15.3 Financial Services & Insurance 15.8
Government/Education/Non-profit 8.3 Government/Education/Non-profit 8.2
Retail & Consumer Products 8.3 Media & Entertainment 8
Media & Entertainment 7.8 Retail & Consumer Products 8
Telecommunications 7 Telecommunications 7.4

Aero/Auto/Transport 6.8 Aero/Auto/Transport 6.3
Healthcare & Pharmaceutical 5.8 Healthcare & Pharmaceutical 5.8
Architecture & Engineering 5.7 Technology - Hardware 5.5
Technology - Hardware 5.2 Architecture & Engineering 5.5
0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5
% of leavers % of leavers
2017 2016
Note: Note:
All interpretations of the LinkedIn data are made by Atomico, not All interpretations of the LinkedIn data are made by Atomico, not
Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A ‘mover’ is defined by LinkedIn as
LinkedIn.
Note:
A ‘mover’ is defined by LinkedIn as somebody now working in
LinkedIn. A ‘mover’
somebody now workingis in defined bythat
the tech industry LinkedIn as somebody
has moved country or industry sectornow working
for their in
primary employment
the tech industry
between that has moved country or industry sector for their
2017 and 2016 the tech industry that has moved country or industry sector for their

Source: LinkedIn
Source: LinkedIn
Source: Source:
LinkedIn LinkedIn
For a lot of corporates it’s a big challenge to attract talent that is very strong in tech,
that has an innovation, growth mindset. I think it’s an ongoing issue for corporates for
us this is a big priority. I think a lot of the answer is in culture, and orchestrating the
kind of processes to give these types of candidates the ability to have impact, and to
minimise the traffic and frustrations, obstacles and processes that are associated with
big corporates. If you look at my team, my background is in startups, most of my team
were in startups - so corporates are starting to attract this kind of talent.
Benjamin Lickfett
Diageo
105
7.3
Spotting patterns in the flow of talent between
tech & traditional industry
Given the size of the auto sector in France and Germany, it's not
surprising to see that there is a higher share of talent joining the tech
industry from auto companies in those two countries
Given the size of the auto Top source sectors for inbound tech talent (“joiners”) by
Top source sectors for inbound tech talent ("joiners") by industry and country
sector in France and Germany, industry and country
it’s not surprising to see that
there is a higher share of talent
joining the tech industry from United Kingdom
auto companies in those two

countries Germany
France
Spain
I am really optimistic because Netherlands

we are running out of sectors to
digitise and the market is getting
very crowded which requires Ireland
more niche expertise. This sort
of niche expertise within specific
verticals, such as industrial or 0 10 20 30 40 50 60 70 80 90 100 110
% of joiners
logistics, is what we can grow
out of Europe and build strong Aero/Auto/Transport Architecture & Engineering Financial Services & Insurance
global players. Government/Education/Non-profit
Media & Entertainment Oil & Energy
Healthcare & Pharmaceutical
Professional Services
Manufacturing/Industrial
Retail & Consumer Products
Staffing Technology - Hardware Telecommunications
Dr. Jeannette Fürstenberg

La Famiglia 18/11/2017 The State of European Tech 2017
Note: LinkedIn defined a sector migrant as someone who is working in an industry (e.g. tech) of as July 2017 that is
different to the industry they were working in July 2016
Source: LinkedIn
But migration flow of talent between the tech and auto industry is a
two-way flow. In France and Germany more than one in ten people
leaving the tech industry are taking up positions at auto companies
But migration flow of talent Top destination sectors for outbound tech talent (“leavers”)
between the tech and auto by industry
Top destinationand country
sectors for outbound tech talent ("leavers") by industry and country
industry is a two-way flow.
In France and Germany more
than one in ten people leaving United Kingdom
the tech industry are taking up
positions at aero/auto/transport
companies Germany
France
Spain
Netherlands
Ireland
0 10 20 30 40 50 60 70 80 90 100 110
Note:
LinkedIn defined a sector mover as someone % of leavers
who is working in an industry (e.g. tech) of as
July 2017 that is different to the industry they Professional Services Financial Services & Insurance Government/Education/Non-profit
were working in July 2016 Media & Entertainment Retail & Consumer Products Telecommunications
Healthcare & Pharmaceutical Architecture & Engineering Aero/Auto/Transport
Source: Technology - Hardware Manufacturing/Industrial Oil & Energy Staffing
LinkedIn
Note: LinkedIn defined a sector migrant as someone who is working in an industry (e.g. tech) of as July 2017 that is
different to the industry they were working in July 2016
106
Source: LinkedIn
7.4
Europe’s traditional incumbents
are cash-rich and hungry
The global tech industry sits Totalglobal

The global cash
tech holdings
industry sitsofonall publicly-listed
more cash than any other industry
on more cash than any other companies ($T) by industry
Total global cash holdings of all publicly-listed companies ($T) by industry
industry
1.6
1.5
1.5
Total cash holdings ($T)

1.3
1
Non-tech companies, 0.7 0.7
however, still control four 0.6
0.5 0.5
0.5
out of every five dollars sat 0.4
0.3
on publicly-listed balance
0
sheets
es
es
gy
te
ch
ls
ry
re
ls
le
80%
ria
ia
na
ca
ta
er
ic
iti
Te
ap
er
rv
Es
En
til
st
lth
io
St
at
Se
et
du
U
ea
al
M
cr
er
In
Re
n
H
is
um
io
D
at
ns
er
ic
un
Co
um
m
ns
m
Co
co
le
Te
share of total global cash

Total cash holdings ($T)
holdings that are held by non-
tech companies
Note: Based on total cash and cash equivalents held by public equities per industry as of 30 September 2017. Non-tech
includes all industries except Financials.
Source: S&P CapitalIQ Platform
While Europe controls a tiny share of cash held by public tech

While Europe controls a tiny companies, it is global
Share of total the largest
cashholder of non-tech
holdings of publiccash globally, equating to
companies
share of cash held by public $1.5 trillion
by type and region
tech companies, it is the largest Share of total global cash holdings of public companies by type and region
holder of non-tech cash globally,
equating to $1.5 trillion 53.6
50
% of global cash holdings
40
European non-tech 30
corporates sit on more 23.2

21.7
cash than those from other 20
18.7
20.1
195/241
regions 13.1 13.6
23%
11.7
10 9.3
6.7
5
3.2
0
Europe United States China Japan Korea Rest of world
Europe’s share of the global

Tech Non-Tech
total of $6T in cash held on
the balance sheets of all non-
tech publicly-listed companies Note: Based on total cash and cash equivalents held by public equities per industry as of 30 September 2017. Non-tech
(excluding companies in the includes all industries except Financials.
financials sectors) Source: S&P CapitalIQ Platform
107
0
7.4
Europe’s traditional incumbents are

cash-rich and hungry
Non-tech companies have made a record number of

investments into European tech companies in 2017
and acquired ~100 tech companies since 2016
Investments and M&A activity of non-tech

TitleNo: 7.4 GroupName: Investments GroupId: 370 ChartId: 119 ArticleId: 68 ChapterId:
15 TitleNo: 7.4 GroupName: M&A GroupId: 372 ChartId: 119 ArticleId: 68 ChapterId: 15
corporates involving European tech companies
Non-tech companies have made a record number of investments into Non-tech companies have made a record number of investments into
European tech companies in 2017 and acquired ~100 tech companies European tech companies in 2017 and acquired ~100 tech companies
since 2016 since 2016
Investments
Investments and M&A activity of non-tech corporates involving European tech companies
M&A
Investments and M&A activity of non-tech corporates involving European tech companies
164 50
50
154
150 44
# of deals / # of M&A transactions

# of deals / # of M&A transactions
40 39
100 30
82
20
58 17
50
34 10
10
0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Investments M&A
Source: Dealroom.co
European non-tech corporates have made a Acquisitions of tech companies by non-tech

number of significant acquisitions - in some cases companies
for $100Ms - of tech companies in 2017
Source: Dealroom.co
One interesting question - most countries have a startup to innovate. In the end, it’s the same result.
tax credit for R&D for large corporates, and that is It would be interesting to extend those R&D tax
mostly for the internal R&D work they do. Would credits to startup acquisitions as a way to boost
we extend that tax credit to startup acquisitions the M&A market by corporates in Europe.
because in a way, when you acquire a startup, you
are supporting innovation? I do not make a big
difference between spending your money on your Romain Lavault
own R&D versus spending your money to acquire a Partech Ventures
108
08
1578
2328 6335
2328
5328
3453
Regulation 2328
2328
Regulation has often been seen as a

constraint on technological development:
a handcuff rather than an enabler.
Tax, data protection and employment regulation has historically

dominated news and policy agendas - and entrepreneurial mindsets.
As the ecosystem matures, however, there are increasing signals

which suggest regulation is emerging as a source of distinct
competitive advantage for European tech, at a government, industry
and company level.
5493
6335
2328
2328
45,023
8.1
Regulation is viewed as a barrier
to scaling European tech 22/11/2017 The State of European Tech 2017
Founders in the southern European countries of Italy and Spain are the
Founders in the southern most
Doeschallenged by regulation
European regulation make it harder to start and scale a
European countries of Italy and technology business?
Does European regulation make it harder to start and scale a technology business?
Spain are the most challenged
50
by regulation Geography
40
% of respondents
34
28 28 27
25
20 21
20
16
13 14 14 14
10 9
8
0
pe
nd
CH
cs
cs
pe
pe
lu
di
lti
ro
ro
ro
la
DA
ne
or
Ba
Ire
Eu
Eu
Eu
Be
N
&
rn
n
&
er
K
he
ce
U
st
ut
an
Ea
So
Fr
l&
ra
nt
Ce
Founders in the southern European countries of Italy and Spain are the

most challenged by regulation
Does European regulation make it harder to start and scale a technology business?
Occupation
3028 29
31 27 27 27
Source: The State of European Tech Survey 2017 25
% of respondents
20 18
16
14 14
12
11 11
10 8
7
0
ee
er
r
or
ee
h)
co
de
en
ec
th
st
oy
oy
ud
un
ch
ve
O
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Fo
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te
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em
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(n
lic
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ub
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tu
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oy
(p
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se
St
pl
ee
ic
em
oy
bl
pl
Pu
ny
em
pa
m
ny
Co
pa
m
Co
The main challenge for European companies to scale up is the size of

the market. A truly unified market with more common rules can help a
lot of entrepreneurs. Furthermore, entrepreneurs need legal stability in
order to launch new products and to innovate, they cannot do it if the
legal ecosystem threatens to change. Entrepreneurs need to have faith
in Europe, that means Europe needs to show them they can.
Xavier Niel
Station F
110
8.1
Regulation is viewed as a barrier to

scaling European tech
TitleNo: 8.1 GroupName: Sub-regional level GroupId: 547 ChartId: 178 ArticleId: 69
ChapterId: 16
Tax, data protection/privacy and Which

Tax, dataone area of regulation
protection/privacy anddo you view as
employment most
regulations are the biggest
employment regulations are the challenging
challenges forfor your company?
European founders overall, but the top challenges vary
biggest challenges for European significantly by country and sub-region
founders overall, but the top Sub-regional
Which one area level
of regulation do you view as most challenging for your company?
challenges vary significantly by
country and sub-region 40 38
35
30
28
24 23 24 23 24
22
20 19
20 18
14
12 11 11
7 8 7
6 5 6 6 5 6 5 5 5
4 4 4 3 3 2 4
2 2 2 1 2
0
0
n
n
ht
x
t
en
ac
nt
ea
Ta
tio
tio
io
io
rig
tit
at
te
m
iv
ar
ca
ec
py
pr
lis
Pa
oy
pe
ot
ifi
Co
es
ca
pl
m
d
rt
pr
an
Em
th
lo
ce
Co
er
a
n
of
&
um
at
tio
D
in
ec
on
ns
ns
ot
Co
N
ce
pr
Li
a
at
D
TitleNo: 8.1 GroupName: Country level GroupId: 723 ChartId: 178 ArticleId: 69 ChapterId:
16 UK & Ireland France & Benelux DACH Southern Europe Nordics Baltics
Central & Eastern Europe
Tax, data protection/privacy and employment regulations are the biggest
challenges for European founders overall, but the top challenges vary
significantly
Note: by country
Founder respondents andmaysub-region
only. Numbers not add to 100 due to rounding
Country level
Which one area of regulation do you view as most challenging for your company?
36 35
32 33
30
26
24 24
22 21
20 19 19
16
12 12 12 12 12
10 9 8
7 7 7 6 7
5 5 4 5 4 4 5 4 4 3 4
2 2 3 3 3
0 0 0
0 n
ht
t
n
x
en
ac
nt
ea
Ta
io
tio
tio
io
rig
tit
at
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iv
ar
ca
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pr
lis
Pa
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pe
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ca
pl
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a
n
of
&
um
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tio
D
in
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on
ns
ns
ot
Co
N
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pr
Li
a
at
D
Europe France Germany Italy Spain United Kingdom

Note: Founder respondents only. Numbers may not add to 100 due to rounding
We need a smart regulatory environment that appropriately addresses market abuse

and distortion without limiting innovation and adoption of new technologies. It is also
important that the policymakers and governments adapt to the changing world of work.
Preserving vested interests and protecting old structures should not be used as reasons
not to allow new innovations to break through, as we will once again see that creative
destruction will open new opportunities and generate further prosperity and wellbeing to
our societies.
Alex Stubb
European Investment Bank
111
8.2
Regulation is an opportunity for
competitive advantage at all levels TitleNo: 8.2 GroupName: Sub-regions GroupId: 129 ChartId: 40 ArticleId: 70 ChapterId: 16
There is broad agreement across Europe's tech community that

regulatory change to incentivise the development of AI, blockchain and
There is broad agreement Ifautonomous vehicles
your government should
was be prioritised
to prioritise regulatory changes to incentivise
across Europe’s tech community one new
If your area ofwas
government technology, which should
to prioritise regulatory it incentivise
changes to be? one new area of
that regulatory change to technology, which should it be?
incentivise the development of Sub-regions
AI, blockchain and autonomous 41
40
vehicles should be prioritised 36 36
35
34
33
31 31
30
% of respondents 30 28 28
27 27
26
25
24
23
22 22 22
21
20 18
17
14
11
10 9
8
7
TitleNo: 8.2 GroupName: Countries GroupId: 730 ChartId:
4 4
40
4 4
3 3
There
0 is broad agreement across Europe's tech community that
Artificial Autonomous Crypto/blockchain Drones
regulatory change to
Intelligence
incentivise
Vehicles
the development of Gene
AI, editing Personal Aircraft
blockchain and
("flying cars")
autonomous vehicles should be prioritised
Europe UK & Ireland France & Benelux DACH Southern Europe Nordics
If your Baltics
government was& Eastern
Central to prioritise
Europe regulatory changes to incentivise one new area of
technology, which should it be?
50
Countries
42
41 41
40 38
37
Founders seek greater
% of respondents
clarity on how AI can 30 29 29 29 29

26
be applied in regulated 23
25
23
25
21 21
industries 20 18 17 17
35%
13 12
10 8 8 8
5 5
TitleNo: 8.2 GroupName: Occupation GroupId: 731 ChartId:
2 3 40 ArticleId: 70 ChapterId:
3 2 16
0
of founders would prioritise There isArtificial
broad agreement Autonomous across Europe'sDrones
Crypto/blockchain tech community
Gene editing thatPersonal Aircraft
Intelligence Vehicles ("flying cars")
regulatory changes to incentivise regulatory change to incentivise the development of AI, blockchain and
the development of AI autonomous
Denmark vehicles
France should beLatvia
Germany prioritised
Sweden Switzerland United Kingdom
If your government was to prioritise regulatory changes to incentivise one new area of
technology, which should it be?
Occupation
40
40
37
36
35 35
31
30
30 29
28
% of respondents
25 25
24
23
21 21
20
20 18
12
11 11
10
6
5
4 4 4 4
3
1
0
Artificial Autonomous Crypto/blockchain Drones Gene editing Personal Aircraft
Intelligence Vehicles ("flying cars")
Source: Founder Investor Startup employee Company employee (public tech co)
Company employee (non-tech) Public sector employee Student Other
112
8.2

competitive advantage at all levels
In the past few decades tech entrepreneurs have transformed

unregulated industries. Now tech is turning to regulated industries,
such as health or education. We’re going after the most difficult
societal issues, and searching for the greatest solutions.
Barnaby Hussey-Yeo
Cleo
We also need to continue to push our European policy on both

competition and regulation in the EU market. New regulatory
frameworks at EU level are necessary to support the development of
emerging tech and market trends, like blockchain or eSports.
Fleur Pellerin
Korelya Capital
There are different views on the Priority technology area for regulatory changes to incentivise
key area for regulatory change development by country of survey respondent
depending on the country
Note:
Both Germany and the Netherlands voted for
AI/blockchain in equal measure
Source:
We are seeing very encouraging approaches to regulation across

various European states, from the UK to France, from Estonia to Malta
and Slovenia; additional guidance from the EU at this stage would
certainly be welcome and should not be delayed. This is a very fluid
and distributed industry, a heavy hand from the regulator could be
very costly, but so would protracted uncertainty and doubt. The ideal
scenario would be for a European authority to enable fully-tokenised
equity structures, which would be a complete game changer.
Stefano Bernardi & Yannick Roux

Token Economy
113
8.2
Regulation is an opportunity for 22/11/2017 The State of European Tech 2017

European media attention has concentrated heavily on the role of

regulation and technology in the financial services sector. There is far
less discussion around key verticals, such as healthcare or education
European media attention has Relative level of media coverage by industry vertical of articles
Relative level of media coverage by industry vertical of articles mentioning technology and
concentrated heavily on the role mentioning technology and regulation
regulation
of regulation and technology in
the financial services sector. 100
Indexed article count rebased to #1 most

100
cited industry vertical, where Financial

There is far less discussion
around key verticals, such as
healthcare or education 75
Services = 100
50
39
34
26
25
13
5
1 1 1 0
0
s
re
re
te
n
ga
ce
ic
iv
nc
tio
io
tu
ca
ta
st
ot
Le
at
vi
ra
ta
Es
ul
lth
gi
m
er
uc
su
or
ric
Lo
to
ea
lS
al
Ed
sp
In
Ag
Re
Au
H
ia
an
nc
Tr
na
Fi
Indexed article count, rebased to Financial Services

Note: Based on unique articles containing "technology" and "regulation" and selected industry verticals. Overall source set
based on representative list of 100 leading European business and tech publications between Jan & Oct 2017
Source: Signal
Companies such as
Sweden’s Natural Cycles
are seeing regulation as
a source of competitive
advantage
1st
birth control app to be certified
as a contraception method by
European authorities
Whilst Natural Cycles becoming the first app to be certified as a

contraceptive might be considered a competitive advantage, we
like to think of it as us paving the way for other medical apps and
creating a new standard for the industry as a whole. Regulation
requires high quality clinical research and ensures that the rights and
safety of consumers and society at large are protected.
Elina Berglund-Scherwitzl
CTO & Co-founder | Natural Cycles
114
8.2

Current regulatory frameworks in Europe are not ready for the

commercial deployment of key new technologies
Status of the regulatory landscape in selected European countries
for the commercial use of key new technologies
Note: This is intended as an indicative overview of the state of European regulation as of

November 2017
Source: Atomico research
Public policy is a mid-to long-term game. We can either have a digital

single market that tries to preserve what Europe was strong at for
the last 50 years or we can have a digital single market that opens
up to what Europe will be strong at for the next 20 to 50 years. So
if we speak about what single market we want, this is really about
where we set the bar in terms of new market entrants and whether
we make it easy for them to access the market or whether we make
it harder.
Lenard Koschwitz
Allied for Startups
115
09
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2328 6335
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5328
Success Stories
3453
& Exits
2328
2328
Europe doesn’t always do a great job of

championing its successes
European tech has had a standout year: we have some serious billion
dollar success stories in our midst.
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9.1
Europe’s billion-dollar
success stories 22/11/2017 The State of European Tech 2017
Europe has now produced 41 tech companies that have achieved $B+
valuations through private market investment rounds, via an acquisition
Europe has now produced Number
or ofaEuropean
through $B+
valuation in thecompanies founded
public markets since 2003
post-IPO
41 tech companies that have Number of European $B+ companies founded since 2003
achieved $B+ valuations through
private market investment 41
Cumulative # of $B+ companies founded since 2003

rounds, via an acquisition or 40
through a valuation in the public 34

markets post-IPO
30
28
20 19
11
10
7
3
2
1
0
2005 2010 2011 2012 2013 2014 2015 2016 2017
Cumulative
Note: Several companies that were formerly valued above $B+ have since fallen below that mark. These include Home24,
Monitise, Powa, Soundcloud, Ulmart, Ve Interactive, Wonga
Source: Atomico research
Today in Europe we’ve created

so many fantastic companies
over the last seven to ten
years, so now there is so much
talent. More smart people from
universities are choosing to go
into tech. You have everything
in Europe to create billion dollar
companies, ten billion dollar
companies or maybe even
hundred billion dollar companies.
Niklas Zennström
Atomico
117
9.1
Europe’s billion-dollar success stories
The UK has produced the most European billion-dollar companies by valuation

$B+ companies, but they have
now emerged from 11 different
countries across Europe since
2003
I believe Europe will continue

to lead in industries where
creativity, tradition and
craftsmanship are key, such as
fashion. It is no coincidence
that the largest players in online
luxury fashion are European.

In fact, even in the more mass
market companies like Zalando.
ASOS, inditex, Adidas, are clearly
leading the way both off- and
online with a high degree of
technological innovation.
José Neves
Farfetch
118
9.1
Europe’s billion-dollar success stories
Europe has seen seven companies surpass a

billion-dollar valuation for the first time in 2017
European companies that surpassed a $B+ valuation for the first time
in 2017, either through a private investment round, via an acquisition
or through passing a $B+ valuation in the public markets for the first
time since IPO
UK Slovenia UK
Finland France UK
Netherlands
119 Photo: Samuli Pentti

9.2
Europe is on track for another $75B+ of
M&A exit value in 2017 1578
22/11/2017 The State of European

2328
Tech 2017 6335
Latest
Company Year Year first
Company Sector Country valuation
TitleNo: 9.2 GroupName: M&A exit value GroupId:
status 361 ChartId:
founded
2328 reached 115
$B+ ArticleId: 73
($B)
ChapterId:
Funding Circle
17 Financial Services Private 2010
5328 2015 UK 1
Total M&A exit value is tracking European M&AEnterprise
exit value ($B) by company type (VC-backed or 1not)
towards another $75B+ year in
Qiwi
Total M&A exit value isApps Public
tracking 2007
towards 2013
another Russia
$75B+ year in 2017 3453
2017 European M&A exit value ($B) by company type (VC-backed or not)
Source: Dealroom.co
M&A exit value
129.2
2328
2328
57.3
53.5
47.6 48.7
43.5
30.9
27.7 25.7
13.6
11
4.1
2012 2013 2014 2015 2016 2017 9M

VC-backed exit value ($B) Non-VC-backed exit value ($B)
Note: M&A exit value based on total enterprise value of all tracked transactions
22/11/2017
Source: Dealroom.co The State of European Tech 2017
TitleNo: 9.2 GroupName: M&A exit count GroupId: 363 ChartId: 115 ArticleId: 73
ChapterId: 17
Total M&A exit value is tracking towards another $75B+ year in 2017
M&A exitM&A
European value
exit value ($B) by company type (VC-backed or not)
449
406
395
262
228 223
5493
111 113
72
6335 61
45 41
2012 2013 2014 2015 2016 2017 9M
VC-backed exit count Non-VC-backed exit count
Note: M&A exit value based on total enterprise value of all tracked transactions
Source: Dealroom.co
2328
2328
45,023
120
9.2
Europe is on track for another

$100B of M&A exit value in 2017
Europe is on track for a record high number of

VC-backed exits in 2017
VC-backed M&A exit count by deal size

TitleNo: 9.2 GroupName: Exit value: $0-100M GroupId: 366 ChartId: 117 ArticleId: 73 TitleNo: 9.2 GroupName: Exit value: $100-250M GroupId: 855 ChartId: 117 ArticleId: 73
ChapterId: 17 ChapterId: 17
Europe is on track for a record high number of VC-backed exits in 2017 Europe is on track for a record high number of VC-backed exits in 2017
Exit value: $0-100M Exit value: $100M-250M
VC-backed M&A exit count by deal size VC-backed M&A exit count by deal size
15
40
30 10
# of deals
# of deals
44 44 15
20 41
13
12
5
24
10 7
17
5
4
9
0 0
2012 2013 2014 2015 2016 2017 9M 2012 2013 2014 2015 2016 2017 9M
$0-100M $100-250M
TitleNo: 9.2 GroupName: Exit value: $250-500M GroupId: 856 ChartId: 117 ArticleId: 73 TitleNo: 9.2 GroupName: Exit value: $500M+ GroupId: 857 ChartId: 117 ArticleId: 73
ChapterId: 17 ChapterId: 17
Europe is on track for a record high number of VC-backed exits in 2017 Europe is on track for a record high number of VC-backed exits in 2017
Exit value: $250M-500M Exit value: $500M+
VC-backed M&A exit count by deal size VC-backed M&A exit count by deal size
12.5
10
10
7.5
# of deals
# of deals
7.5
11 12 12
5
9 5 10
6
2.5
2.5 5 5
4
3
2
1
0 0
2012 2013 2014 2015 2016 2017 9M 2012 2013 2014 2015 2016 2017 9M
$250-500M $500M+

TitleNo: 9.2 GroupName: Exit value: Undisclosed GroupId: 858 ChartId: 117 ArticleId: 73
ChapterId: 17
Europe is on track for a record high number of VC-backed exits in 2017

Exit value: Undisclosed
VC-backed M&A exit count by deal size
150
# of deals
100
180
155 161
50
59
43
28
0
2012 2013 2014 2015 2016 2017 9M
Undisclosed
Source: Dealroom.co
121
9.2
Europe is on track for another

$100B of M&A exit value in 2017
European tech companies are overwhelmingly
acquired by European buyers
European tech companies are overwhelmingly acquired by European
buyers
M&A exits by buyer country by year
M&A exits by buyer country by year
152
150
127
122
100
# of deals
60
51 53
50 46
34
23 24
19 21 21
10 11
8 8
3 3 2 3
0
2012 2013 2014 2015 2016 2017 (9M)
Europe USA and Canada Asia Other (Incl. unknown buyer country)
Source: Dealroom.co

9.3
European tech has delivered
another strong year of IPOs

Europe has had the most tech
IPOs globally in 2017
TitleNo: 9.3 GroupName: Tech IPOs GroupId: 407 ChartId: 136 ArticleId: 74 ChapterId: 17
Number of tech IPOs by region

Europe has had the most tech IPOs globally in 2017
Tech IPOs
50 49
43
41
40 39
38
Number of tech IPOs
34
31
30 29
26
22
20
20
17
10
0
2014 20152017 2016 2017 (9M)
TitleNo: 9.3
Europe GroupName:
- Tech IPOs Sponsor-backed
US - Tech IPOs Tech IPOs GroupId: 410 ChartId: 136 ArticleId: 74
ChapterId: 17
Europe has had the most tech IPOs globally in 2017

Sponsor-backed Tech IPOs
16
15
13
Number of tech IPOs
10 10 10
10
9
5
5
4
3 3
0
2012 2013 2014 2015 2016 2017 (9M)
Europe - Sponsor US - Sponsor

123
9.3


There have been 6 $B+ tech IPOs from Europe in
the first nine months of 2017
TitleNo: 9.3 GroupName: Market cap of $1B+ GroupId: 417 ChartId: 139 ArticleId: 74
ChapterId: 17
Number of tech IPOs by market cap at IPO by year
and region There have been 6 $B+ tech IPOs from Europe in the first nine months of
2017
Number ofoftech
Market cap $1B+IPOs by market cap at IPO by year and region
11 11
10 10
Number of tech IPOs by market cap at IPO
10
9
8
7.5
5 5
5
3
2.5
0 0
2012 2013 2014 2015 2016 2017 (9M)
TitleNo: 9.3
Europe GroupName:
- $1B+ Market cap of <$1B GroupId: 774 ChartId: 139 ArticleId: 74
US - $1B+
ChapterId: 17
There have been 6 $B+ tech IPOs from Europe in the first nine months of
2017
Market cap of < $1B
Number of tech IPOs by market cap at IPO by year and region
50
46
Number of tech IPOs by market cap at IPO
40 38
32
31
30 29 29
23 23
22
20
15 15
10 8
0
2012 2013 2014 2015 2016 2017 (9M)
Europe - <$1B US - <$1B
124
9.3

European tech companies have raised $6B+ via the

public capital markets in the
TitleNo: first
9.3 nine months
GroupName: of
IPO GroupId: 411 ChartId: 137 ArticleId: 74 ChapterId: 17
2017, exceeding proceeds raised in US tech IPOs
European tech companies have raised $6B+ via the public capital
Proceeds raised ($B) by funding
markets typefirst
in the and region
nine months of 2017, exceeding proceeds raised in
US tech IPOs
Proceeds raised ($B) by funding type and region
IPO
20.6
20
15
Proceeds raised ($B)
10.6
9.9
10
8.7
7.7
7.1
6.4 6.3
5 4.6
2.2
22/11/2017 1.4 The State of European Tech 2017
0.3
0
Europe
TitleNo: 9.3 GroupName: - IPO
Follow-on US - IPO 74 ChapterId: 17
GroupId: 413 ChartId: 137 ArticleId:
European
2012 tech
2013 companies
2014 have raised
2015 2016 $6B+
2017 (9M)via the public capital
markets in the first nine months of 2017, exceeding proceeds raised in

US tech IPOs
Proceeds
Follow on raised ($B) by funding type and region
20 19.7
15.2 15.2 15
15 14.4
Proceeds raised ($B)
12.8
10 9.8
8.4
7.3
6.2
5.5
5 4.7
0
Europe - Follow-on US - Follow-on
2012 2013 2014 2015 2016 2017 (9M)
125
9.3

22/11/2017 stronger for smaller listings,

Europe is traditionally The State of European Tech 2017
but since 2012 the region has also seen more large
offerings of $500M+ than the
TitleNo: 9.3US
GroupName: Europe GroupId: 414 ChartId: 138 ArticleId: 74 ChapterId: 17
Europe
Number of tech IPOs is traditionally
by proceeds stronger
raised at IPO by for smaller listings, but since 2012 the
year and region region has also seen more large offerings of $500M+ than the US
Number of tech IPOs by proceeds raised at IPO by year and region

Europe
40
40
30
30 29
Number of tech IPOs
25 25
20
20
10 9
8 8 8
7
4 4
2 2
1
0 0
0
2014 20152017 2016 2017 (9M)
TitleNo: 9.3
Europe GroupName:Europe
- <$100M US GroupId:
- $100-500M416 ChartId: 138 ArticleId: 74 ChapterId: 17
Europe - $500M+
Europe is traditionally stronger for smaller listings, but since 2012 the
region has also
Source: London seen more large offerings of $500M+ than the US
Stock Exchange
Number
US of tech IPOs by proceeds raised at IPO by year and region
25 24
20 19
17
Number of tech IPOs
15 14
12
11 11 11
10
10 9 9
5
5
3 3
1 1
0
0
2012 2013 2014 2015 2016 2017 (9M)
US - <$100M US - $100-500M US - $500M+
126
9.3


European markets better understand the importance of liquidity and
so are more open to existing investors selling down their position
at IPO. As a result, TitleNo:
there is a9.3 GroupName:
much EuropeofGroupId:
higher share 419share
secondary ChartId: 140 ArticleId: 74 ChapterId: 17
sales than in the US
European markets better understand the importance of liquidity and so
are more
Average share of primary open
versus to existing
secondary sharesinvestors
sold at IPO selling
by down their position at IPO. As
region a result, there is a much higher share of secondary share sales than in
the US
Europe
Average share of primary versus secondary shares sold at IPO by region
% share of primary versus secondary shares sold at IPO
100
75
67
73
72 77
87
50 99
25
33
27 25 23
TitleNo: 9.3 2GroupName: US 13GroupId: 787 ChartId: 140 ArticleId: 74 ChapterId: 17
0
European markets
2012
better
2013
understand
2014
the importance
2015
of liquidity2017
2016
and so
(9M)
are more open to existing investors

Average of Primary % Sold - Europe
selling down their position at IPO. As
Average of Secondary % Sold - Europe
a result, there is a much higher share of secondary share sales than in
the US
US
Average share of primary versus secondary shares sold at IPO by region
% share of primary versus secondary shares sold at IPO
100
75
86 87 89
97 98 95
50
25
14 13 11
3 2 5
0
2012 2013 2014 2015 2016 2017 (9M)
Average of Primary % Sold - US Average of Secondary % Sold - US
127
9.3

another strong year of IPOs 22/11/2017 The State of European Tech 2017
European tech IPO vintages have often outperformed those in the US in

aftermarket performance, including in 2017 1578
European tech IPO vintages have Weighted aftermarket performance of European tech
Weighted aftermarket performance of European tech IPOs by vintage year
often outperformed those in the IPOs by vintage year 2328 6335
US in aftermarket performance, 2328
including in 2017 333
Weighted aftermarket performance, offer date to 30

5328
300 3453
September 2017
200
2328
100 2328
71 74
66
56
43 37
30 27 24
22
6
0
2012 2013 2014 2015 2016 2017 (9M)
Europe US

Europe still has a long way to go. Despite adding nearly $350B in total
market value since 2012 and more than doubling the total market cap of
public European tech companies to $657B, this has been eclipsed by
value creation from US and China in that period
Europe still has a long way to Total market cap ($B) of public tech companies by region
go. Despite adding nearly $350B Total market cap ($B) of public tech companies by region
in total market value since 2012 6k
and more than doubling the total 5,455
market cap of public European 5k
tech companies to $657B, this

has been eclipsed by value
Aggregate market cap ($B)
4k
creation from US and China in
that period 3k
2,956
2k
1,011
1k
675
331
213
0
Europe US China
5493
2012 2017
6335
2328
2328
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128
9.3

There are no tech companies Most valuable public companies by region and type
in the top 10 most valuable
companies in Europe, whereas
the top five from the US and the
top two from China are all tech
companies
Note:
Market cap as of 31 October 2017
Source:
S&P CapitalIQ Platform
Europe’s most valuable tech

company is much more
valuable than most people
think
$135B
market cap of SAP, Europe’s
most valuable tech company
129
10
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Mythbusting 2328
2328
Taking a data-fuelled sledgehammer to

some of the biggest myths about the
European tech ecosystem
Part of the reason we feel so passionate about this research is the

opportunity to challenge common misconceptions about European
technology, and truly reflect the reality of what’s happening on the
ground.
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10.1
Myth #1: European venture
does not deliver returns 22/11/2017 The State of European Tech 2017
Since the dotcom era, European venture capital performance has

Since the dotcom era, European improved
Top quartiledramatically
performance (net internal rate of return) of EIF-backed
venture capital performance has VC funds by vintage(net
Top quartile performance year
internal rate of return) of EIF-backed VC funds by vintage year
improved dramatically
23.1 24.9
22.3
18.5 19.1
20
16.7 16.1
Net internal rate of return (%) 12.5

11.9
10 7.4
6.6
0
0
-5.5
-10
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Net IRR
Note: Data for VC funds raised in 2003 is not meaningful
Source: European Investment Fund
131 Photo: Sami Välikangas

10.2
Myth #2: European VCs don’t
cross borders
Again, not so. For rounds of $10M+, European VCs

Again, not so. For rounds of $10M+, European VCs actually invest outside
actually invest outside of their domestic market
of their
more oftendomestic
than they makemarket more
investments often than they make investments at
at home
home
% of investments made by European VCs into
international (non-domestic) companies by size
%
of of investments
round ($M) made by European VCs into international (non-domestic) companies by
size of round ($M)
$0-2M 23
$2-5M 32
$5-10M 38
$10-20M 51
$20-50M 53
$50M+ 65
0 10 20 30 40 50 60 70
% of investments
% of 2017 investment rounds
Source: Dealroom.co
132
10.3
Myth #3: Europe’s public market
investors don’t get tech 22/11/2017 The State of European Tech 2017
Untrue. Europe is building an increasingly sophisticated base of public

Untrue. Europe is building an market investors
Most active with
public stronginvestors
market tech investment credentialsEuropean tech
in publicly-listed
increasingly sophisticated base companies
Most active public market investors in publicly-listed European tech companies
of public market investors
with strong tech investment
SwedbankRobur Fonder 24
credentials
NorgesBank Investment Management 21
Schroder Investment Management 21
FIL Investment Advisors 21
Legal & General Investment Management 19
Standard Life Investments 19

Old Mutual Global Investors 18
Allianz Global Investors 16
Baillie Gifford 14
0 5 10 15 20 25
# of public tech company holdings
# of public tech companies invested in
In recent years we have witnessed deepening sophistication of the

European investor base across a range of tech sectors. We see that 238/241
evidenced in London where the “valuation gap” to US competitors is no
longer a factor. Tech IPOs in the US this year have seen mixed success,
yet across Europe we have seen good tech companies deliver solid IPOs
backed by knowledgeable institutional investors.
Nikhil Rathi
London Stock Exchange PLC
133
11
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3453
What’s next 2328

2328
As we close the door on 2017, we cast our

eyes to the year ahead
Some say that making predictions is a dangerous game, but making

educated guesses based upon the latest data can be quite smart.
Having analysed the shifts and trends of European technology in 2017,

here are four key trends that Tom Wehmeier, the report’s author,
foresees in 2018.
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11.1
Predictions for European
tech in 2018 from report
author, Tom Wehmeier
Prediction #1 Founders will come to see regulation as a source of potential

competitive advantage
The ‘move fast and break things’ mentality has never sat well
with heavily-regulated markets. As founders realise that they can
gain an advantage through regulatory compliance, it will go from
being seen as a perceived handcuff to being a potential source of
competitive advantage. Think of Natural Cycles, Kry or Babylon in the
healthcare market. They are all early examples of companies that
have embarked upon - and come out of the other side of - lengthy
regulatory approval processes to gain an an advantage on their
competitors.
Prediction #2 A venture-backed European tech startup will exit for a $B+ to a

traditional non-tech European giant
Non-tech European corporates have already made billion-dollar tech

acquisitions (Anglo-Dutch Unilever picked up Dollar Shave Club),
but acquisitions within Europe have typically been in the hundreds
of millions (for example, BNP Paribas and Compte Nickel). This will
change in 2018 as European non-tech corporates put some of their
combined $1.5 trillion cash holdings to work.
Prediction #3 European founders will increase efforts to tap engineering talent

pools outside of traditional hubs
The battle for talent in Europe is intensifying. Not only are there
more venture-backed startups that are better funded and hungrier
for engineering talent than ever, but global tech giants are also
expanding aggressively in the region with inflated salaries on offer
for the most talented. At the same time, European corporates are
fighting back, ensuring talent flows are not a one-way street into
tech. In order to stay competitive in this context, European founders
will look for creative ways to best exploit the untapped engineering
talent pools in less obvious places. For example, we expect to see
more satellite offices opening up across the region in upcoming hubs.
Prediction #4 A top-tier, established European VC will participate in a token

offering/ICO
In 2017, top-tier US funds (including Andreessen Horowitz and Union

Square Ventures) actively invested directly in tokens via Initial Coin
Offerings. They were joined by some of Europe’s newest funds, such
as Blueyard. But the region’s most established funds have yet to
participate. This will change in 2018.
135
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Appendix 2328
2328
The State of European Tech Report 2017:

how we did it
In these pages we share the methodologies behind the data in this

report, including the State of European Tech Survey 2017.
Sign up to the Atomico mailing list

http://atomico.com/signup if you’d like to take part in next year’s.
5493
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12.1
Survey respondents
Geographic origin of survey respondents Occupation of survey respondents
Geographic origin of survey respondents Occupation of survey respondents
Nordics 25 Founder 32.7
UK & Ireland 21.4

Investor 16.4
Southern Europe (Greece, Italy, Portugal,

12.1
Spain)
Startup employee 15.9
France & Benelux 11.1
Company employee (non-tech) 13.3
DACH 10.5
Company employee (public tech co) 6.4
Rest of Europe 7.8
Student 5.9
Baltics 6.6
Other 5.1
Rest of world 3.5
United States 2 Public sector employee 4.3

0 5 10 15 20 25 0 5 10 15 20 25 30 35
% of respondents % of respondents
% %
Note: Number may not add to 100 due to rounding Note: Number may not add to 100 due to rounding
Source: Survey Source: Survey

Gender of respondents
Gender of respondents
Male 74.8
Female 24.3
Prefer not to say 0.9
0 10 20 30 40 50 60 70 80
% of respondents
Note: Number may not add to 100 due to rounding
Source: Survey
137
12.2
More about our partners
About Craft Craft is a machine-learning powered data and analytics platform

building the “Source of Truth” on companies and mapping the global
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the largest companies in the world.
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to track innovative companies and identify strategic opportunities,
through data-driven software.
About European Investment The European Investment Fund is a specialist provider of risk finance
Fund to benefit small and medium-sized enterprises (SME) across Europe.
It forms part of the EIB Group. Its shareholders are the European
Investment Bank (EIB), the European Union, represented by the
European Commission, and a wide range of public and private banks
and financial institutions.
The EIF carries out its activities using either its own resources or
those provided by the European Investment Bank, the European
Commission, by EU Member States or other third parties.
By developing and offering targeted financial products to
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About Invest Europe Invest Europe is the association representing Europe’s private equity,
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Invest Europe’s members take a long-term approach to investing in

privately held companies, from start-ups to established firms. They
inject not only capital but dynamism, innovation and expertise. This
commitment helps deliver strong and sustainable growth, resulting
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Invest Europe aims to make a constructive contribution to

policy affecting private capital investment in Europe. We provide
information to the public on our members’ role in the economy. Our
research provides the most authoritative source of data on trends
and developments in our industry.
Invest Europe is the guardian of the industry’s professional

standards, demanding accountability, good governance and
transparency from our members. Invest Europe is a non-profit
organisation with 25 employees in Brussels, Belgium. For more
information please visit www.investeurope.eu
138
12.2
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productive and successful and transforms the ways company hire
and sell. Our vision is to create economic opportunity for every
member of the global workforce through the ongoing development of
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members and has offices around the world.
About London Stock Exchange London Stock Exchange is the world’s most international capital
market. Over 2,400 companies from more than 90 countries are
quoted across its markets, with a combined value of over £4 trillion.
London Stock Exchange’s markets include the Main Market – London’s
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businesses access to Europe’s most liquid pool of capital – and AIM –
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technology for smart organisations to power informed decision-
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About Stack Overflow Stack Overflow is the largest, most trusted online developer
community for developers to learn, share their knowledge, and
build their careers. More than 50 million professional and aspiring
programmers visit Stack Overflow each month to help solve coding
problems, develop new skills, and find job opportunities.
Founded in 2008, Stack Overflow partners with businesses to help

them understand, hire, engage, and enable the world’s developers.
To learn more about Stack Overflow’s business solutions - technical
recruiting, advertising, market research, and enterprise knowledge
sharing visit stackoverflowbusiness.com.
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About Startup Europe Established by the European Commission in January 2014 at the
Partnership World Economic Forum in Davos, SEP is the first pan-European open
innovation platform dedicated to transforming European startups
into scaleups by linking them with global corporations and stock
exchanges. By participating in the SEP program, global companies
have access to the best technologies and companies with the goal of
initiating business partnerships and venture corporate investments.
Scaleups are exposed to qualified sales/strategic opportunities as
well as funding options either via venture capital, private placements,
or IPOs.
SEP is led by Mind the Bridge, a global organization based in Europe

and Silicon Valley. SEP is a Startup Europe initiative. Partners include
leading corporates and the European Investment Fund/ European
Investment Bank Group, London Stock Exchange Group, Nesta, EBAN,
European Startup Network, The ScaleUp Institute. For more info:
http://startupeuropepartnership.eu | @sep_eu
About Quid Quid is software that reads millions of documents and offers
immediate insight by organising that content visually. We power
human intuition with machine intelligence, enabling organisations to
make decisions that matter. For more info: https://quid.com/
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A few acknowledgements
This report wouldn’t be possible without the help of many people -

here we say a big thank you to all involved.
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Contributors
Bryce Keane James Clark Marianne Vikkula

Atomico London Stock Exchange Slush
Matt Muir Sarah Baker John Muskett

Atomico London Stock Exchange Stack Overflow
Sabrina Wangday Odile Beniflah Natalia Radcliffe-Brine

Atomico Meetup Stack Overflow
Tom Wehmeier Ben Novick Natalie Novick

Atomico Milltown Partners Startup Heatmap Europe
Ilya Levtov Britta Tarvis Thomas Kosters

Craft Milltown Partners Startup Heatmap Europe
Karthik Suresh Francesca Burton Benjamin Constantini

Craft Milltown Partners Startup Sesame
Julien Puls Jenny Craig Joanna Kirk

Dealroom.co Milltown Partners Startup Sesame
Yoram Wijngaarde Alberto Onetti Moojan Asghari

Dealroom.co Mind the Bridge Startup Sesame
Oscar Farres Denisa Florea Ricky Tan

European Investment Fund Perep Analytics TokenData
Uli Grabenwarter Jürgen Furian Joe Lovelock

European Investment Fund Pioneers Festival Studio Lovelock
Jean-Loup Karst Sam Waudby Ben Jakob

Hired Quid Studio Lovelock
Cornelius Mueller
Invest Europe Shashi Reddy Matt Collins
Quid Studio Lovelock
Julien Krantz
Invest Europe Kerstin Bock Mike Allanson
Openers Studio Lovelock
Claire-Louise Fagan
LinkedIn Carolin Lessoued Tiffany Beucher
Openers Studio Lovelock
Declan McNamara
LinkedIn Daniel Bowman Amir Mizroch
Signal
James Upsher
LinkedIn Laura Karinen
Slush
Hetal Patel
London Stock Exchange
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State of European Tech 2017 Full Report

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1578

Welcome to the third edition of the

At Atomico, we believe it is only possible to do this based on a

About this report

We are excited to share the third edition of The State of European

As in previous years, we’ve been ambitious about the data partners

to carefully build the most accurate picture of what is going on in

One area we wanted to double down on in 2017 was geographic

So this year we have worked with a number of strategic distribution

We have also spoken intimately with a select group of over 50

Atomico invests in disruptive technology

We’re not a traditional venture capital firm. We exist for more

than returns, even though it is our lifeblood. Since we began our

While we invest globally, our focus is Europe. The strength and

Despite having grown in just a few years from a 300-person assembly

to a world-renown event, the philosophy has remained the same:

Photo: Samuli Pentti 5

Supported by data from our

We gathered insights from over 50 people across

A word from Orrick

As a law firm, Orrick focuses on

About Orrick Orrick is a global law firm focused on serving the

SVB provides a range of targeted financial services and expertise

Studio Lovelock are a digital design studio in South

Their team brings experience, intelligence and a playful enthusiasm

Visit www.studiolovelock.com to view their portfolio.

Evolving Europe 2328

A lot has happened since last year’s report

Macro political and economic upheavals are to be expected. The

A year marked by a number of

Spain's Cabify raises

Europe’s tech workforce

It’s been a busy year for European tech

22/11/2017 The State of European Tech 2017

Top 10 fastest-growing tech worker populations

Ireland 5.3 Ireland 5.5

Netherlands 4.6 Germany 3.3

Germany 4.2 United Kingdom 3

France 3.6 Poland 2.7

Czech Republic 3.3 France 2.5

United Kingdom 3.2 Switzerland 2.5

Austria 2.8 Czech Republic 2.5

Norway 2.8 Belgium 2.3

Portugal 2.7 Romania 1.7

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 0 1 2 3 4 5 6

While there are notable While there

The level of optimism

more optimistic about the future months ago?

of UK founders are less

Europe has a strong sense of optimism

It is absolutely easier to build a European tech company today than it

Photo: Jussi Hellsten 15

Europe's tech community views the UK's triggering of Article 50 as the

Source: The State of European Tech Survey 2017

UK triggering Article 50 to start the process of exiting the EU

Note: Numbers may not add to 100 due to rounding

Source: The State of European Tech Survey 2017

Compared to 12 months ago, I have actually got less excited about

Europe’s tech ecosystem is feeling the impact

More than any other event, the

18/11/2017 The State of European Tech 2017

Europe's tech community is feeling the impact of Brexit in different ways

Text Analytics Background:

How to Read a Network: