European tech is starting to bounce back and AI is turbocharging the recovery.
This overtaking follows a decade of rapid progress.
This talent pipeline is now flowing into some impressive startups.
In 2023,AI companies raised 11 of Europes 36mega-roundsof $100mn or more.
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Their successes have helped Europes ecosystem rebound to a total value of $3 trillion equalling its 2021 peak.
And that brings with it a greater amount of certainty, predictability, and general confidence throughout the ecosystem.
AI isnt the only field with an impressive talent pool.
This means the rate of job creation is more than offsetting the redundancies.
It also continues an impressive recent spell of expansion.
One reason for this rise comes from across the Atlantic.
According to Atomicosdata, Europe is now anet beneficiaryof tech talentfrom the US.
Theres always been this myth that Europe sees a big exodus of talent to the US, Wehmeier said.
But when you look at their data, it shows that the inverse is actually true.
The tech talent has sparked an explosive growth in new startups.
This year, Europe has produced an estimated 14,000 new founders 1,000 more than in the US.
Unfortunately, the continents investor landscape cant yet match the ambitions of its founders.
In the US,startups are40% more likelyto raise VC funding within their first five years.
Skype provides a powerful European example.
Entrepreneurs from the firms alumni networkhave gone on to launch more than900 companiesacross 50 countries.
Atomico calls this phenomenon the flywheel effect.
Nonetheless, the flywheel could certainly do with more greasing from investors.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
