The State of European Tech

In Partnership with &
The State of
European Tech 2018

Contents
00 2018 Key Findings 3
01 The State of European Tech 2018 7
02 Tech & the European Economy 14
03 Diversity & Inclusion 26
04 Europe’s Got Talent 43
05 Tech Hubs 62
06 Research & Development 82
07 Regulation 90
08 Investors & Investment 102
09 Great European Companies 126
10 Challenges 138
11 Mythbusting 141
12 Predictions 145
13 About 151
14 Appendix 159
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2018
Key Findings
What’s changed for It’s been another record year for investment in European
tech and the sector is powering growth in Europe’s
European tech in the stagnant economy. Yet not everyone is benefitting from the
boom. The gains are not being democratized by investors.
Companies need to address diversity and inclusion tools
past 12 months? and unlock hidden talent pools.
KEY FINDINGS
01 Another record year for investment into the European
tech ecosystem
02 Europe urgently needs to fix its diversity & inclusion
problem
03 Europe’s tech industry is the best hope for growth for
a stalling European economy
04 The gains from Europe’s tech boom are not yet being
democratised
05 Mobilising Europe’s hidden tech talent pool can unlock
huge upside
06 Europe is producing $B+ companies at a level that is
15x+ higher than a decade ago
07 Top highlight statistics for Europe
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2018 Key Findings
Another record year for investment into
the European tech ecosystem
CAPITAL INVESTED
$ B
23
Record sums invested in Europe’s technology
ecosystem- $23bn in 2018 up from just $5bn in 2013.
TECH IPO COMPANIES
X $ B
4 5
There were four tech IPOs or direct listings of European tech
companies in 2018 that reached valuations of more than $5B
on opening day, including Europe’s largest ever venture-
backed publicly-listed tech company, Spotify. In total, Europe
contributed three of the top 10 largest tech IPOs globally of 2018.
Europe urgently needs to fix its diversity
& inclusion problem
CAPITAL INVESTED
%
93
93% of all funds raised by European VC-backed
companies went to all-male founding teams in 2018.
GENDER DISCRIMINATION
%
46
Almost half of women reported that they have experienced
discrimination in the European tech sector. This is a point
of clear tension with the 75% of respondents who think the
culture at their European startup is inclusive. In European
tech, discrimination appears to be someone else’s problem.
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2018 Key Findings
Europe’s tech industry is the best hope for
growth for a stalling European economy
TECH INDUSTRY GROWTH
X
5
Europe’s tech (software) industry is growing 5x faster than
the rest of the European economy in terms of Gross Value
Added, a level that has accelerated in recent years.
Eurostat
EMERGING TECH HUBS
%
4
The European tech workforce grew 4% in 2018 (source:
LinkedIn), a significant difference to overall EU employment
growth of 1.1%.
European Commission
The gains from Europe’s tech boom are not
yet being democratised
PENSION FUNDS INVESTMENT
X
45
Pension funds are not yet democratising Europe’s tech sector
boom - over the last five years, pension funds have invested just
$1.7B in European VC, but have invested 45x more in European
buyout funds, equivalent to more than $75B over that period.
HNW INVESTMENT
$ B
5
European tech growth and record success has not gone
unnoticed by family offices and high net-worth individuals
(HNWs). Over the last five years they have invested over $5bn
in European venture capital funds. Only government agencies
have invested more in European VC in that same period.
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2018 Key Findings
Mobilising Europe’s hidden tech talent
pool can unlock huge upside
PROFESSIONAL DEVELOPERS
Europe’s ecosystem is more distributed
and more interconnected than ever - there
M are now 5.7m professional developers
5.7
in Europe, up by 200,000 on 2017. This
compares to the 4.4m in the US, a number
that stayed flat year on year.
EMERGING TECH HUBS
Still more European tech hubs will
emerge. Cities such as Cologne, Warsaw
15 and Vienna all have larger developer
populations than Stockholm and active
local tech communities, but have yet to
attract as much investment. In fact, there
are 15 European cities with professional
developer populations of 50,000+ that
have seen less than $1B in total capital
investment since 2013.
Europe is producing $B+ companies at a
level that is 15x+ higher than a decade ago
$B+ COMPANIES
61
European $B+ companies founded in the past 15 years, including
a record 17 new companies that first surpassed the milestone in
2018. Europe has also now produced 12 companies with a $5B+
valuation, of which 5 have grown to more than $10B.
SUCCESS GROWTH
X
15
Two companies founded in the 2000s had reached $B+ by 2008.
Compare that to 31 founded in the 2010s that reached that
milestone by 2018 - an increase of 15.5x. Where will the 2010s
end up by 2028?
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The State of
European Tech
2018
Back once again like This is the fourth edition of the State of European Tech
report, the single, most comprehensive data-driven story
the renegade...er... of European technology today. We’ve gathered data from
world-class data partners and a survey of 5,000 members
of the tech ecosystem, from founders to students,
data analysers! investors to researchers. We’ve tried to tell the most
important stories. We cover diversity and inclusion, talent,
regulation, investment, research and development, and the
great, global disrupters out of Europe.
ARTICLES
01.1 Welcome to the State of European Tech 2018
01.2 Executive Summary
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Welcome to the
State of European Tech 2018
We’re proud to present the 2018 edition of the State
of European Tech report, which is once again the
single, most comprehensive data-driven story of
European technology today.
It’s been another incredible year We write this report to shine a light that this report is a lot longer than in
for European tech - but there are on the issues that matter in the previous years. This was a deliberate
some significant challenges too European ecosystem. We aim to enrich decision. Our data is open, and our
conversations, highlight challenges, hope is as many people as possible will
and support more informed decision use it to help tell the stories that matter
making by closing the knowledge gap to them in Europe.
between perception and reality.
Each year we aim to produce a
resource that is more comprehensive
than the last. To this end, you’ll notice
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Photo: Anrietta Kuosku

Executive Summary
For the past four years, we’ve produced an exhaustive deep dive into
the European tech ecosystem by analysing the rich insights of our data
partners. Every year the data busts another myth about our ecosystem:
from pointing out that Europe actually has more developers than the US,
to quantifying European advances in deep tech.
Another record breaking This year we’re at risk of sounding like a $23 billion - up from $5 billion just five
year for European tech broken record about breaking records years ago. European founders created
- but we can’t dispute the data. In 17 billion-dollar companies. And in
another extraordinary year, investment 2018, Europe produced three of the ten
in European tech reached a record biggest venture backed public listings.
Technology has become At a macro-level, Europe’s technology faster than the rest of the European
a motor for growth in the sector is booming as the wider economy. This year’s report suggests
European economy economy is stuck in the doldrums. that for a number of reasons, this
As of Q3 2018, European growth was motor will only become more powerful.
flatlining at 0.2%, the lowest rate for The importance of the tech to the
four years. Europe’s software industry overall economy will only increase.
is now growing at least five times
European tech Last year we found that Europe was This all contributes to ‘density’ -
achieving density experiencing a ‘Battle Royale’ for talent. which historically has been a crucial
This year was the year Europe figured precondition for explosive growth.
out how to effectively mobilise its Europe is certainly achieving density,
deep pools of talent. The tech sector is but it’s doing it its own way. What is
attracting more participants - whether interesting is that the developer pool is
measured by the healthy increase in growing fastest outside those countries
professional developers or the uptick that have historically attracted the most
in talented executives moving into tech investment: Turkey, Spain and Russia’s
from other sectors. The report shows pool of developers have been deepening
dense areas of talent coalescing around the most rapidly. All this will lead to a
universities, anchor tech companies, massive potential upside for the wider
and innovation hubs, leading in turn European economy as capital eventually
to increases in investment, and flows into these new communities.
growth in anchor tech companies.
Europe is a research This year’s report also shows science and tech converge further,
powerhouse that we are only scratching the there is huge scope to strengthen
surface of the potential of Europe’s the link between European STEM
research community, and not fully and startups. Europe has a research
harnessing our own cutting-edge community larger than U.S. and China
science. An analysis by CERN, one - we need to make sure this becomes
of this community’s most influential the hugely powerful differentiator it
members, demonstrates that as should be.
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Photo: Kai Kuusisto
01.2 Executive Summary
Let Europe be Europe A word to the naysayers: irrespective horizon periods. We believe this is a
of the huge strides European tech has bellwether for a changing landscape.
taken in the last few years, our tech Let’s not forget that 95% of the value
sector will continue to be compared to creation of today’s US tech sector
the performance of Silicon Valley. is from companies founded 15 years
ago or more, and that the early tech
And as the ecosystem accelerates, successes of ARM, Amadeus and Ocado
we are increasingly cool with that! For were not venture-backed. Given that
a long time, US VC has outperformed 21 European companies have been
European VC in terms of portfolio founded and scaled to billion-dollar-
returns, but that is increasingly untrue. plus valuations with the support of
The latest historical performance data venture capital since 2010 alone, we are
shows that European venture has been confident that Europe has caught up on
outperforming US venture in recent North America’s head start.
A big diversity and This year’s report also unearths several way behind where it needs to be. This
inclusion problem figures which are extraordinary for stark reminder of our shortcomings is
all the wrong reasons. The State of timely, and it’s important that we draw
European Tech has always highlighted the right conclusions.
the challenges Europe faces, but this
year, we’ve identified a particularly Reporting this data is a first step in the
serious problem: 46% of women told us right direction. Only by measuring the
they have experienced discrimination problem can you start to solve it. To
in the European tech industry. As our take on this challenge, we’ve worked
chapter on diversity and inclusion with Diversity VC to launch an industry-
shows, this statistic is the tip of the first resource: a practical and hands-on
iceberg. While most investment figures guide for technology entrepreneurs
in this report spell good news, the fact that will help them build companies
that all-male founding teams received that have diversity and inclusion at
around 93% of the capital and 85% of their core. It’s not a complete solution,
the deals speaks for itself. Women and but we hope it’s a contribution that
minorities are underrepresented at founders will find useful nonetheless.
every level of the ecosystem. Corporate You can find the toolkit at
policy on diversity and inclusion is still www.inclusionintech.com
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01.2 Executive Summary
But we can still learn from As Europe catches up, it is vital that we Niklas Zennström founded a streaming
the successes and failures make the most of our second mover company called Kazaa. Kazaa was a
of others advantage - both in the companies we failure, but a group of Swedes led by
build, and in our approach to building Daniel Ek were paying close attention,
them. European tech has escaped most and learned important lessons.
of the backlash which has engulfed Learning from the mistakes of the
big US technology companies and previous generation led to the creation
characterised media coverage this of Spotify. Spotify has unequivocally
last year. For this to continue, we’ll proven that today, European founders
need to learn from past failures, and can raise the right capital, hire the best
act ethically from day one. European talent, go the full distance, stave off
technologists have already shown we ferocious competition and win on a
can learn from the lessons of the past global stage. Spotify will now become
in terms of business strategy. Before the spur and inspiration for other
he founded Skype, Atomico’s CEO European breakout successes.
Another broken record: This report has consistently highlighted offices and high net worth individuals
Bridge the funding gap, the need to close the institutional have spent the last five years investing
democratise European investor funding gap. Over the last five $5 billion in venture capital. If pension
years, pension funds have invested just funds can rebalance their allocations
tech’s success $1.7 billion in European VC, but have away from legacy industries towards
invested 45x more in European buyout gamechanging technology instead, they
funds, equivalent to more than $75B can democratise access to the spoils of
over that period. Meanwhile, family European tech.
An ecosystem irreversibly The European ecosystem has levelled the seeds of success this year were
changed up. Today, as Spotify has shown us, planted a decade ago. That is why we
European founders have access to should expect even greater success
sophisticated investors, can hire the in the years to come. As long as we all
best talent, go the full distance, stave continue to learn from both success
off ferocious competition, go public and failure, will European tech reach
and win on the global stage. Europe is the heights we know it to be absolutely
now reaping the early rewards from the capable of.
transformation of its tech ecosystem-
Thank you to all our partners I’d like to dedicate my final words to them this report would not have been
thank all of our data partners and most possible.
importantly, Slush and Orrick. Without
Tom Wehmeier
Partner, Atomico
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01.2 Executive Summary
A Word from Slush
Scrolling through the figures of The problem of diversity that Europe,
the State of European Tech 2018 like the rest of the world, is having can
report, it is easy to feel a nice sense be turned into an opportunity. By lifting
of confirmation to what we’ve been up a more diverse set of role models will
seeing and hearing throughout the affect the decisions of to-be founders.
year in countless conversations with Emphasizing the role that humanities
entrepreneurs: European tech is and arts, in addition to STEM, will
graduating. Record numbers of both play in the future development of
raised funding and exits speak louder technological solutions should be done
than words, and they have interesting upfront if we want to gain an edge from
consequences. the magnificent creative industry in
Europe.
As the amount of successful scale-up
companies continues to rise on the One more additional thing that
continent, so does the need for ever Europe really stands to benefit from
greater amounts of top tier talent. is our strong academia. Nailing
the combination of bleeding-edge,
As the access to venture capital is hardcore research and practical, world-
no longer the biggest bottleneck for class company building should be one
European tech, our eyes are turning of our main targets for the upcoming
towards cultivating the next generation years.
of world-class talent for the current and
future tech companies that are set out Almost all businesses that want to
to solve some of the biggest challenges make it big in Europe have to think
on the planet. international or global from the
beginning. This is a mindset that
For this we need a diverse talent pool to we should utilise also in the next
be part of building the European tech generation of education for future
companies. entrepreneurs. Stay tuned!
Andreas Saari
CEO, Slush
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01.2 Executive Summary
A Word from Orrick
There has been a nearly five-fold innovation – as companies in every
growth in European venture capital sector recognize the need to adapt to
investment in the last five years. the tech transformation.
There are five times the number of
unicorns – with at least 17 new billion Altogether these trends point to a
dollar plus companies added in the robust future for European tech.
past year alone. The European tech
sector has produced nearly four times However, the Report’s purpose is
the job growth rate of the general to shine a light on all of “the issues
economy, resulting in a talent pool of that matter” in the European tech
programmers and STEM researchers ecosystem. We applaud Atomico for
surpassing that of the United States. highlighting some deeply troubling
ones: 46% of women in tech report
Tech and innovation is no longer on the experiencing discrimination and only
sidelines in Europe – it is driving the 7% of capital went to female founded
economy. That’s the clear take-away companies or mixed gender founding
from this year’s State of European Tech teams. That’s not right – and it’s not
Report. sustainable if Europe truly wants to
innovate. We also applaud Atomico’s
At Orrick, we see it in our practice collaboration with Diversity VC to
every day as we have helped founders, provide guidance to founder teams on
investors and corporate venture clients how to build a diverse and inclusive
raise or deploy more than $3.7 billion culture. Awareness and education
across Europe over the past year. are a key first step. Investors have an
essential role to play. The good news
As a global tech law firm, we’re not is that there’s an incredible amount
surprised to see investors from around of unfunded talent out there. Let’s all
the world chasing strong returns from participate in the conversation about
their European investments. While U.S. how to dramatically improve next year’s
investment returned to 2016 levels after results.
another record-breaking performance
last year, investment from Asia We’re grateful to Atomico for the
continued to grow. opportunity once again to help provide
this data to the tech community in
We’re encouraged by corporate venture Europe and globally. We hope you
investment growth, particularly from find it as useful as we do in seeing the
outside traditional tech industries. patterns and opportunities in this rich
This affirms the strong demand for and promising ecosystem.
Chris Grew
Partner,
Technology
Companies Group
Orrick
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Tech & the
European Economy
Continuing to drive While Europe’s overall economy and traditional industries
are stuck in the doldrums, booming tech represents
the best hope for growth. Tech firms are powering job
significant growth creation and ambitious founders are tackling some of the
world’s biggest problems. All of that has members of the
ecosystem optimistic - except in the U.K. where sentiment
is not at the same levels as elsewhere.
ARTICLES
02.1 Powering Workforce Growth
02.2 Tech: The Motor for GDP Growth
02.3 Heritage as opportunity
02.4 Smiles (almost) all round in European techv
02.5 Tech for Good: A European Opportunity?
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Powering Workforce Growth
The European tech industry continues to power remarkable workforce growth, leading to a signiïcant acceleration
Employment growth in European economy as a whole is stalling. The European
in the rate of change in 2018. Europe's tech workforce grew 4% in 2018, up materially from 2.6% in 2017. More
Commission’s latest forecast for 2018 employment growth implies a drop to just
importantly, Europe's tech workforce is now growing at 3.6x the rate of employment growth in the European
1.1% year-on-year growth, a material decline from the level seen in 2017.
economy as a whole
EU employment growth, 2016-2018
1.5 1.5%
LEGEND 1.3%
EU employment YoY growth
1.1%
)
%
( 1.0

h
wt
o
r
g

Y
o
Y
0.5
0.0
2016 2017 2018
Note:
Source: European Commission. European Commission
It is worth comparing EU employment growth rate TECH WORKER POPULATION GROWTH
to the remarkable worker population growth that
powers the European tech industry. Europe’s tech worker population grew
% 4% in 2018.
4
The French tech worker population is growing
The French tech worker population is growing signiïcantly
significantly faster than in Germany and the UK.
faster than in Germany and the UK
Tech worker population growth in France,
Germany and the UK in 2018 France 7.3%
LEGEND
YoY tech worker population growth (%) in 2018
Germany 4.0%
United Kingdom 3.3%
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
YoY growth (%)
Note:
Based on an analysis of sample pool of LinkedIn members and
the difference between those in 2018 working in the Tech Source:
Sector in each country from this sample pool.
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02.1 Powering Workforce Growth
France’s tech worker population grew at the fastest WORKFORCE GROWTH
rate of any European country in 2018
French tech workforce growth in 2018,
% based on a comparison of the size of
7.3 the workforce in October 2018 versus
October 2017.
The rate of tech workforce growth across Europe
The rate of tech workforce growth across Europe is not equally distributed with workforces in some countries
is not equally distributed, with workforces in some
growing much faster than others. France, for example, hit 7.3% growth in 2018, making it comfortably the fastest-
countries growing much faster than others.
growing tech workforce in Europe
YoY growth in the worker population of the Finland 3.9%
Top 20 largest tech workforces by country in Italy 3.5%
2018
Sweden 3.4%
DATASET: 11-20
United Kingdom 3.3%
LEGEND
Denmark 3.3%
2018
Romania 3.1%
Netherlands 3.0%
Bulgaria 2.8%
Czech Republic 1.9%
Hungary 1.1%
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
YoY growth (%)
Note:
Based on an analysis of sample pool of LinkedIn members and
the difference between those in 2018 working in the Tech Source:
Sector in each country from this sample pool and those in 2017.
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Photo:Jussi Ratilainen

Tech: The Motor for GDP Growth
There is an ever-widening gap in the indexed growth rates of the tech (software) and non-
The implication of this sustained difference in growth rates is starkly visible when looking at indexed growth of the
tech parts of the European economy. Over the past 15 years, tech (software) has grown to
tech (software) and non-tech parts of the European economy. Over the past 15 years, tech (software) has grown to
hit 194% of its relative value in 2002.
hit 194% of its relative value in
Chain linked volumes of tech and non-tech 200 194
GVA (indexed 2002-2016) 188
)
6
1 173
0
2 175
LEGEND -
2 163
0
0
Tech 2 155

d
e
x 146
Non-tech e
d 150 141 141
n
i
(
136 136
s 133 130 129 133
me 126 128
u 125
l 124 123
o 121
v
125 118
d
e 112
k
n
i 107
l

n
i 100 100
a
h
C 100
75
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note:
2016 is the most recent year for which full NACE breakdowns of Source: Eurostat
European GVA are available. Tech refers to the European Eurostat
software industry, or NACE J62-63. Non-tech is everything
else.
Europe’s software industry growth dramatically ECONOMIC GROWTH
outpaces the rest of the European economy
Latest figures show Europe’s
software industry Gross Value Added
5x is growing 5x faster than the rest of
the European economy
Eurostat
While the long-term historical trend in relative growth rates has been impressive, more
While the long-term historical trend in relative growth rates has been impressive, more recently the speed of
recently the speed of growth between tech and non-tech has diverged even further. Today,
growth between tech and non-tech has diverged even further. Today, the European tech (software) industry is now
the European tech (software) industry is now growing 5x faster than the rest of the economy
growing 5x faster than the rest of the economy
% Growth YoY of tech and non-tech
contribution to European economy by GVA 3.1%
(2016 versus 2015) 3.0
LEGEND
YoY growth (%) )
%
(
2.0
h
wt
o
r
g

Y
o
Y
1.0
0.6%
0.0
Tech* Non-tech
Note:
*Tech refers to the European software industry, or NACE J62- Source: Eurostat
63 Eurostat
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02.2 Tech: The Motor for GDP Growth
Over the last 10 years, many of these traditional industries upon which the European
economy is so dependent have either stagnated or declined, undermining the overall
Over the last 10 years, many of these traditional industries upon which the European economy is so dependent
rate of growth in European Gross Value Added
have either stagnated or declined, undermining the overall rate of growth in European Gross Value Added
Chain linked volumes of tech and selected 146
142
traditional industries GVA (indexed 2007- 140
)
2016) 6 131
1
0
2
-
7 123
0
LEGEND 0
2 118 118
117
d 120
e
Tech x 112 111
e 110 109 110
d 107
n
i
(
Real estate activities 103 103 103 103 103
s 100 102 100
Wholesale and retail trade, transport, accommodation me 98
u
l 100 94 95 94 95
and food service activities o
v
90 90
d 88 89 89
e 87
Industry k 85 85
n
i 83
l

n
Financial and insurance activities i
a
h 80
Construction C
Telecommunications
60
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note:
2016 is the most recent year for which full NACE breakdowns of Source: Eurostat
European GVA are available. Tech refers to the European Eurostat
software industry, or NACE J62-63.
Yet the European economy today remains heavily dependent on traditional
Yet the European economy today remains heavily dependent on traditional industries, such as industrial
industries, such as industrial manufacturing, construction, retail and transportation
manufacturing, construction, retail and transportation
Share of total gross value added in Europe Industry (except construction) 21%
19%
Wholesale and retail trade, transport, 19%
LEGEND accomodation and food service
activities
% of total GVA (2002)
Public administration, defence, educa… 19%
% of total GVA (2016)
Real estate activities 11%
Professional, scientific and technical … 11%
Construction 6%
Financial and insurance activities 5%
Arts, entertainment and recreation; ot… 4%
Tech 3%
Agriculture, forestry and fishing 2%
Telecommunications 2%
Publishing, motion picture, video, tele… 1%
Publishing activities 1%
Motion picture, video, television progr… 1%
0 5 10 15 20
% of total gross value added
Note:
Europe is based on EU-28. 2016 is the most recent year for Source: Eurostat
which full NACE breakdowns of European GVA are available. Eurostat
Tech refers to the European software industry, or NACE J62-63
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Photo: Kai Kuusisto
02.2 Tech: The Motor for GDP Growth
The European tech (software) industry contributes around $400 billion to the
European economy today, though it remains just a fraction of total European
The European tech (software) industry contributes around $400 billion to the European economy today, though it
Gross Value Added, accounting for just 2.5% of total European GVA
remains just a fraction of total European Gross Value Added, accounting for just 2.5% of total European GVA
Tech industry contribution to the European 400.0
economy by total Gross Value Added ($B) and $376.0B
% of total (2002-2016) 2.4
$335.0B
300.0 $300.0B
) T
LEGEND B $2.1B e
$ $264.0B $263.0B c
( 2.2 h

Tech d a
e $2.0B s
d $234.0B
d %
A
Tech as % of total GVA $208.0B o
e f

u $194.0B t
l 200.0 $1.9B o
a t
V a
2.0 l
s
s $1.9B G
o V
r A
G $1.8B
$1.8B $1.8B
100.0 1.8
0.0 1.6
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note:
2016 is the most recent year for which full NACE breakdowns of Source: Eurostat
European GVA are available. Tech refers to the European Eurostat
software industry, or NACE J62-63
At ~$400 bllion, Europe’s software industry ECONOMIC GROWTH
is still just a fraction of overall European
Gross Value Added Latest data shows Europe’s software
%industry accounts for 2.5% of total
2.5 Gross Value Added in Europe, up from
1.9% 10 years ago
Eurostat
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Heritage as Opportunity
There is huge equity value locked up in TRADITIONAL INDUSTRY
traditional industry in Europe
Total value by market cap of European
$8.8T companies from traditional industries in
the S&P Global 1,200
S&P Global Market Intelligence
As technology becomes an increasingly more transformative force across all parts of
the economy, there is a huge opportunity to digitise and reignite Europe’s traditional
As technology becomes an increasingly more transformative force across all parts of the economy, there is a huge
industries with trillions of dollars of value in play. The combined market capitalisation
opportunity to digitise and reignite Europe's traditional industries with trillions of dollars of value in play. The
of European constituents of the S&P Global 1,200 equates to $8.8 trillion in just the top
combined market capitalisation of European constituents of the S&P Global 1,200 equates to $8.8 trillion in just
10 most valuable traditional industries.
the top 10 most valuable traditional industries.
Total market cap of European public Energy $1,270B
companies in S&P Global 1,200 by industry Financial Services $1,231B
group ($B)
Bio & pharma $1,150B
LEGEND Materials $924B
Total Market Cap ($B) Food & Drink $893B
CPG $777B
Retail $734B
Industry $648B
Insurance $608B
Mobility $523B
0 200 400 600 800 1,000 1,200 1,400
Total market cap ($B)
Note:
Based on an analysis of the industry breakdown by market cap, Source: S&P Global Market
revenue, market cap/revenue multiple and age of the 328 Intelligence
constituents of the S&P Global 1,200 Index from Europe. Data
as of October 2018. S&P Global Market Intelligence
Those same 300 or so European companies control more than $6.9 trillion in annual
Those same 300 or so European companies control more than $6.9 trillion in annual revenue and represent a giant
revenue and represent a giant potential opportunity for any European tech companies
potential opportunity for any European tech companies that seek to take on those incumbent giants in their
that seek to take on those incumbent giants in their traditional industries
traditional industries.
Total revenue of European public companies Energy $1,642B
in S&P Global 1,200 by industry group ($B) Mobility $1,012B
Materials $906B
LEGEND
Total revenue ($B) Insurance $843B
CPG $589B
Financial Services $537B
Food & Drink $422B
Industry $375B
Bio & Pharma $344B
Retail $269B
0 250 500 750 1,000 1,250 1,500 1,750
Aggregate LTM revenue ($B)
Note:
Based on an analysis of the industry breakdown by market cap, Source: S&P Global Market
S&P Global Market Intelligence
revenue, market cap/revenue multiple and age of the 328 Intelligence
constituents of the S&P Global 1,200 Index from Europe. Data
as of October 2018.
20 In Partnership with & www.thestateofeuropeantech.com

02.3 Heritage as Opportunity
Europe’s most valuable public companies - 95% TRADITIONAL INDUSTRY
of which come from traditional industries - have
demonstrated remarkable endurance until now Median age in years of the 348 European
companies that are constituents of the
102 S&P Global 1,200 index. This compares to
64 for North American companies. Do the
old have the speed it takes to respond to
tech-enabled change?
S&P Global Market Intelligence
Interestingly, the median age of the incumbent companies in these
industries is well over 100 years. In the battle of incumbent versus startup,
Interestingly, the median age of the incumbent companies in these industries is well over 100 years in most cases.
it is not the young who beats the old or the large who beats the small. It is
In the battle of incumbent versus startup, it is not the young that beats the old or the large that beats the small. It
those who are fast that are more likely to succeed against the slow.
is those that are fast that are more likely to succeed against the slow.
Median age in years of European public Insurance 155
companies in S&P Global 1,200 by industry Financial Services 154
group
Industry 4.0 135
LEGEND Food & Drink 130
Median Age of Companies (years) CPG 125
Materials 113
Mobility 102
Biology 2.0 92
Retail 66
Energy 62
0 25 50 75 100 125 150 175
Median age (years)
Note:
Based on an analysis of the industry breakdown by market cap, Source: S&P Global Market
S&P Global Market Intelligence
revenue, market cap/revenue multiple and age of the 328 Intelligence
constituents of the S&P Global 1,200 Index from Europe. Data
as of October 2018.
&
21 In Partnership with www.thestateofeuropeantech.com
Photo: Joonas Linkola

Smiles (almost) all round in
European tech
Europe’s tech ecosystem remains characterised by a strong level of growing optimism
Europe's tech ecosystem remains characterised by a strong level of growing optimism about the future. This
about the future. This increase in optimism is most evident in Eastern and Southern Europe
increase in optimism is most evident in Eastern and Southern Europe, where real momentum in building the local
where there is real momentum. The UK, perhaps unsurprisingly, registered the largest
tech ecosystems is evident. The UK, perhaps unsurprisingly, registered the largest downturn in optimism by a wide
downturn in optimism by a wide margin.
margin.
Are you more or less optimistic about the Central Europe & Baltics
future of European technology today than
you were 12 months ago? DACH
LEGEND Eastern Europe
More
About the same France & Benelux
Less
Nordics
Southern Europe
UK & Ireland
0 20 40 60 80 100
% of respondents
Source:
There continues to be a very strong sense of EUROPEAN TECH OPTIMISM
optimism across the European tech ecosystem
of the European tech community is either more
optimistic about the future of European tech, or
90 maintain the same levels of optimism compared
to 12 months ago. This remains the same as
2017, when 91% of respondents were more
optimistic or the same.
S&P Global Market Intelligence
22 In Partnership with & www.thestateofeuropeantech.com

02.4 Smiles (almost) all round in European tech
2018 has seen some strong wins for the European tech
ecosystem and we are resoundingly optimistic and
excited by the opportunity set we see emerging.
“ 2018 has seen some strong wins for the European tech ecosystem and
we are resoundingly optimistic and excited by the opportunity set we
see emerging. There were several large IPOs in the region signalling
that the sector is maturing while still generating opportunities to
partner with emerging, disruptive companies that combine market
leadership, multiplying network effects and data-driven approaches
to create transformative businesses. Enhanced access to early
growth capital is also a hugely positive market driver, enabling more
Munish Varma companies to scale rapidly while still prioritising innovation.”
SoftBank Vision Fund
The factors that are driving optimism around the future of European tech are many and
The factors that are driving optimism around the future of European tech are many and varied. But when asked to
varied. But when asked to state the most important grounds to be optimistic, respondents
state the most important grounds to be optimistic, respondents gave a clear number one reason: the people that
gave a clear number one reason: the people that make up the tech ecosystem
make up the tech ecosystem
What, if anything, makes you feel optimistic People 27%
about the state of the European tech
ecosystem? Growth & Momentum 25%
Startup Ecosystem 11%
LEGEND
% of respondents European Collaboration & Diversity 11%
Capital Availability 9%
Tech Innovation 7%
Regulation & Political Climate 6%
Values & Ethics 5%
0 5 10 15 20 25 30
% of respondents
Note: Source:
Based on respondents that gave explicit responses only.
I’m definitely more optimistic than 12 months ago. I
think we’re seeing a marked shift in ambition in Europe,
and crucially, that’s being matched at an investor level.
“ I’m definitely more optimistic than 12 months ago. I think we’re seeing
a marked shift in ambition in Europe, and crucially, that’s being
matched at an investor level. What’s more, the increased cost of living
and hiring competition seem to have taken the blinkers off a lot of
Valley-bound entrepreneurs. This can only benefit Europe.”
Rosie Dallas
Fat Llama
23 In Partnership with & www.thestateofeuropeantech.com

Tech for Good:
A European Opportunity?
There is strong agreement across all survey respondents, including within the public
There is strong agreement across all stakeholders, including within the public sector, that European tech
sector, that European tech entrepreneurs will have a bigger impact than European
entrepreneurs are changemakers for a better world and that they will have a bigger impact on helping to important
governments when it comes to solving important global challenges.
global problems than Europe's governments.
European technology entrepreneurs will do
more to address societal challenges Founder or startup/scale-up employee
LEGEND
Agree Investor
Neither agree nor disagree
Disagree
Policymaker or public sector employee
Other
0 20 40 60 80 100
% of respondents
Source:
Area of Focus City Country Round Selected Investors
Selected early-stage European tech Date
companies with a strong focus on solving a Cambridge Glycoscience Biology 2.0 Cambridge UK 3Q18 Y Combinator
major global or societal challenge that have Cytera CellWorks Biology 2.0 London UK 3Q18 Y Combinator
raised in the past year from top investors
Lifebit Biology 2.0 London UK 3Q18 Connect Ventures, Pentech Ventures, Tiny VC
GTN Limited Biology 2.0 London UK 2Q18 Octopus Ventures, Pentech Ventures
Quit Genius Digital Health & London UK 2Q18 Force Over Mass Capital, Village Global, Y Combinator
Wellness
TPH.co Future of Retail Stockholm Sweden 2Q18 Propel Capital, STING, Seedcamp, The Nordic Web
Ventures, Wave Ventures
Veratrak Biology 2.0 Oxford UK 2Q18 Seedcamp
Carbo Culture Future of Energy Helsinki Finland 1Q18 Wave Ventures, Lifeline Ventures, Starlight Ventures
Disior Digital Health & Helsinki Finland 1Q18 Maki.vc
Wellness
KisanHub Future of Food & Cambridge UK 1Q18 IQ Capital Partners, Notion Capital
Drink
Sixfold Bioscience Biology 2.0 London UK 1Q18 Y Combinator, LombardStreet.io Ventures
ThinkSono Digital Health & London UK 1Q18 AI Seed, WestTech Ventures
Wellness
WeFarm Future of Food & London UK 1Q18 Localglobe, True Ventures, ADV, Norrsken Foundation
Drink
Fat Lama Future of Retail London UK 4Q17 Blossom Capital, Greylock Partners, Atomico, Y Combinator
Hygglo Future of Retail Stockholm Sweden 4Q17 Norrsken Foundation, Schibsted Growth
(SWE)
LabGenius Biology 2.0 London UK 4Q17 Acequia Capital, Kindred Capital, System.One
Source:
24 In Partnership with & www.thestateofeuropeantech.com

02.5 Tech for Good:A European Opportunity?
There is a strong level of conviction in the power of ENTREPRENEURS AS CHANGEMAKERS
European tech entrepreneurs to be changemakers
for a better world % of public sector and policymaker
% respondents who agree that European
64 technology entrepreneurs will do more to
address major societal challenges than
European governments
There is clear evidence that those working in European technology pay
close attention to the social and ethical impact of the companies for
There is clear evidence that those working in European technology pay close attention to the social and ethical
whom they work - this is reflective of a global trend.
impact of the companies for whom they work - this is reðective of a global trend.
100
The potential social and ethical impact of a
company plays a signiïcant role in my
decision to invest in or work for that 75
company
s
t
n
e
LEGEND d
n
po50
Female, Agree s
e
r

f
Male, Agree o

Female, Neither agree nor disagree %
Male, Neither agree nor disagree 25
Female, Disagree
Male, Disagree
0
Female Male Female Male Female Male
Venture capitalist Angel investor Other investor
Source:
Compared to US, we seem to be a bit further ahead
when it comes to sustainability. Especially when it
comes to food waste and climate consciousness, both
among consumers and within the food industry...
“ Compared to US, we seem to be a bit further ahead when it comes
to sustainability. Especially when it comes to food waste and
climate consciousness, both among consumers and within the
food industry...Compare this with President Trump’s decision to
withdraw from the Paris agreement a year ago...One thing that has
influenced us at Karma is that we’ve had mission driven, competent
and successful entrepreneurs, such as Niklas Adalberth founding
Norrsken Foundation, drive the agenda of using entrepreneurship to
Elsa Bernadotte build technologies that can solve social challenges on a global scale.”
Karma
The social impact of a company plays an important SOCIAL & ETHICAL IMPACT OF INVESTMENT
role in how VCs invest, especially female VCs
% of European female VCs who agree that
% the potential social and ethical impact
83 of a company plays a significant role in
their decision to invest in a company. This
compares to only 61% of male VCs.
&
25 In Partnership with www.thestateofeuropeantech.com

Diversity
& Inclusion
Perception and Reality While the vast majority in Europe’s tech ecosystem
agrees diversity is a good thing, the community has
a major diversity problem. Women and minorities are
underrepresented at every level of the ecosystem.
Corporate policy on diversity and inclusion still lags.
ARTICLES
03.1 We’ve Got a Problem
03.2 We’re All Part of the Problem
03.3 Accelerating Change
In Partnership with & www.thestateofeuropeantech.com

We’ve Got a Problem
No single question in the survey received a stronger level of agreement than this one.
When asked if having a diverse team is a benefit to company performance, almost 90% of
No single question in the survey received a stronger level of agreement than this one. When asked if having a
respondents agree. If the European tech ecosystem wants to achieve its full potential, then
diverse team is a bene t to company performance, almost 90% of respondents agree. If the European tech
diversity and inclusion has to be at its core.
ecosystem wants to achieve its full potential, then diversity and inclusion has to be at its core.
Having a diverse team is a bene t to
company performance
Female
LEGEND
Agree
Neither agree nor disagree
Disagree
Male
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Source:
The European tech community is dominated by men. Women account for just 22% of
The European tech community is dominated by men. Women account for just 22% of participants in tech-related
participants in tech-related Meetup events in the region. Notably, the industry is failing to
Meetup events in the region. Notably, the industry is failing to make any meaningful progress, having seen an
make any meaningful progress, having seen an increase of just a single percentage point in
increase of just a single percentage point in the level of female participation at European tech community events
the level of female participation at European tech community events in the past two years.
in the past two years.
25
Share of female attendees in tech-related
Meetup events in Europe 22%
21% 21%
20
LEGEND
Total in Europe (%) s
e
e
d15
n
e
t
t
a

e
l
ma
e
f

f10
o

%
5
0
2016 2017 2018
Note: Source:
% of the reported gender of attendees only.
Diversity is one of our core values.
It’s vital to our business and has
been embedded from the beginning.
Diverse teams are better for
business, and better for creativity. Pip Jamieson
The Dots
&
27 In Partnership with www.thestateofeuropeantech.com

03.1 We’ve Got a Problem
The gender imbalance of the tech communities within different countries follows the
European-wide picture, though there are leaders and laggards. The top 10 countries for
female participation at tech-related Meetup events across the region is dominated by
countries from Eastern Europe, though it should be noted that female participation in the
Women are not equally present in tech communities in any
number one country, Albania, only reaches 33%.
European country
Share of female attendees in tech-related Albania 33%
Meetup events by country Lithuania 28%
DATASET: TOP 10 COUNTRIES Romania 28%
LEGEND Bulgaria 26%
2018 Latvia 26%
Serbia 26%
Bosnia and Herzegovina 25%
Ukraine 25%
Portugal 25%
Sweden 25%
0 5 10 15 20 25 30 35
% of female attendees
Note:
% of the reported gender of attendees only. Only countries
with 100+ reported female attendees included.
Source:
We found only 1 female CTO out of 175 CTOs that work at VC-backed
We found only 1 female CTO out of 175 CTOs that work at VC-backed European tech companies that raised a Series
A or Series B in the past year.
European tech companies that raised a Series A or Series B in the past year
Gender composition by job title for Chief Executive Officer 6% 94%
Executive-level positions of selected
European Series A and B venture-backed Chief Technology Officer 1% 99%
companies Chief Operating Officer 11% 89%
LEGEND Chief Financial Officer 20% 80%
Female
Male Chief Marketing Officer 21% 79%
Chief Revenue Officer (or similar) 9% 91%
Chief Product Officer 9% 91%
CxO Other 19% 81%
0 20 40 60 80 100
% of Executives
Note:
Based on a sample of executives in CxO positions at 270
European VC-backed tech companies that raised a Series A or Source:
B round between 1 October 2017 and 30 September 2018.
The 'class of 2018' of VC-backed European tech companies
The ‘class of 2018’ of VC-backed European tech companies shows no
shows no improvement compared to similar analysis from
improvement compared to similar analysis from 2017
2017.
Share of women by position of senior leaders
and founders of selected European Series A 9% 9%
and B venture-backed companies (2018
versus 2017)
LEGEND 6% 6% 6%
2017 5%
2018
2%
1%
% of CEOs % of CTOs % of Founders % of all CxO leaders
Note:
Based on a sample of Founders and executives in CxO
positions at 270 European VC-backed tech companies that Source:
raised a Series A or B round between 1 October 2017 and 30
September 2018. 2017 data is based on a similar sample.
&
28 In Partnership with www.thestateofeuropeantech.com

03.1 We’ve Got a Problem
Europe is not necessarily tangibly better or worse than other
tech hubs – however, given that Europe is such a diverse range of
geographies and people this should be a key strength.
“ Lack of diversity is driven by a combination of factors that affect the
pipeline of talent in STEM subjects, the availability of diverse role
models, access to expertise and capital, social mobility and a range
of other issues. Europe is not necessarily tangibly better or worse
than other tech hubs – however, given that Europe is such a diverse
range of geographies and people this should be a key strength. I
am encouraged to see the subject of diversity and inclusion appear
Check Warner on the agenda of more tech companies and more VCs over the last
Diversity VC 12 months and to see so many funds participating in initiatives led
by Diversity VC and others. I hope that this translates to sustained
and impactful change – the first step though is understanding the
situation as it is today, which is why Atomico’s commitment to this
subject is so encouraging.”
The European tech industry's lack of diversity could not be more stark when it comes to how funding is allocated in
The European tech industry’s lack of diversity could not be more stark when it
The European tech industry's lack of diversity could not be more stark when it comes to how funding is allocated in
the region. It is arresting to see that male founders and founding teams receive 95% of the capital invested and
comes to how funding is allocated in the region. It is arresting to see that all-male
the region. It is arresting to see that male founders and founding teams receive 95% of the capital invested and
account for 90% of deals,. It is even more stark to see that the these shares have not changed in the last year
account for 90% of deals,. It is even more stark to see that the these shares have not changed in the last year
founding teams receive 93% of the capital invested and account for 85% of deals.
It is even more stark to see that these shares have not changed in the last years.
Capital Raised
Capital Raised
Capital raised and # of deals by founding DATASET: CAPITAL RAISED
Capital raised and # of deals by founding 100 95% 94%
team gender (%) 100 92% 93% 93% 93%
team gender (%) ) 92% 95% 94% 93% 93% 93%
%
(

)
s
LEGEND l
% 75
a
(

e
s
l
LEGEND d
75
a
Male f
e
o

d

#
Male f

/
o
Female

)
#

% 50
/
(
Female

Mixed )
d
%
e 50
(

s
Mixed i
d
a
e
r

s
l
i
a
a
t
r

l
pi 25
a
a
t
The European tech industry's lack of diversity could not be more stark when it comes to how funding is allocated in
C
pi 25
a
C 6%
the region. It is arresting to see that male founders and founding teams receive 95% of the capital invested and
2% 4% 2% 4% 3% 4% 2% 5% 2% 5%
6% 1% 4% 4% 4% 5% 5%
0 3%
account for 90% of deals,. It is even more stark to see that the these shares have not changed in the last years.
2% 1% 2% 2% 2%
0 2013 2014 2015 2016 2017 2018
2013 2014 2015 2016 2017 2018
Source:
Source:
DATASET: # OF DEALS
# of deals
85% 86% 86% 85% 85% 85%
) 75
%
(

s
l
a
e
d

f
o 50

#

/

)
%
(

d
e
s
i
a 25
r

l
a
t 10% 10%
pi 9% 9% 9% 9%
a 6%
C 5% 5% 5% 5% 5%
0
2013 2014 2015 2016 2017 2018
Source:
&
29 In Partnership with www.thestateofeuropeantech.com

03.1 We’ve Got a Problem
There is shocking imbalance in the flow of capital FUNDING DIVERSITY
to male versus female founders
of all funds raised by European VC-backed
% companies in 2018 went to all-male
93 founding teams.
The importance of diversity and inclusion has unquestionably gained an elevated
prominence in the news narrative around the tech industry in Europe. But the
The importance of diversity and inclusion has unquestionably gained an elevated prominence in the news narrative
level of discussion around this topic pales into insignificance relative to other
around the tech industry in Europe. But the level of discussion around this topic pales into insigniïcance relative
core tech topics. In fact, in the past year, there have been more articles devoted
to other core tech topics. In fact, in the past year, there have been more articles devoted to discussion of crypto
to discussion of crypto than to diversity and inclusion in Europe. We have an
than to diversity and inclusion in Europe. We have an opportunity to shine a much brighter spotlight on the
opportunity to shine a much brighter spotlight on the problem.
problem.
Share of total tech news narrative by topic 43.6%
area and region Fundraising
34.0%
LEGEND 11.8%
European news sources Exits (IPOs & M&A)
11.5%
US news sources
11.9%
Blockchain
8.1%
19.9%
Artificial Intelligence
16.7%
10.6%
Diversity & Inclusion
7.4%
Note:
Based on ~3,000 stories across 843 European news sources
(primarily UK focused) and ~2,700 stories across 1,103 US news Source:
sources from Septemeber 2017 to September 2018.
&
30 In Partnership with www.thestateofeuropeantech.com
Photo: Petri Anttila

03.1 We’ve Got a Problem
Each node represents an article. Links connect articles sharing similar language. Clusters
form when many articles share strong similarity, revealing topics.
Blockchain: 11.91%
Fundraising: 43.58%
Diversity, Discrimination,
Harassment, Pay Equity, Women:
10.62%
Diversity: 3.8%
Discrimination: 1.2%
Harassment: 1.3%
Pay Equity: 0.3%
Women: 7.4%%
&
31 In Partnership with www.thestateofeuropeantech.com

03.1 We’ve Got a Problem
The narrative around diversity and inclusion is driven by US tech companies, leaving a huge vacuum in terms of
Interestingly, the reporting we do see on diversity and inclusion in tech in European news
European voices stepping up into the discussion. In the absence of European voices taking part in the discussion,
sources is driven by US tech companies. There’s a huge vacuum of European voices
does this leave an opportunity for leadership from European tech companies to help drive the discussion in a
stepping into the discussion. We all have a responsibility to do and say much more.
positive way?
Top 10 most discussed companies in Google 157
European news stories focused on diversity Facebook 88
and inclusion in the tech industry
Twitter 45
LEGEND Microsoft 37
# of mentions Apple 35
Salesforce 30
PwC 24
IBM 23
McKinsey 21
Amazon 20
0 25 50 75 100 125 150 175
# of unique articles primarily talking about the company
Note:
Based on ~3,000 stories across 843 European news sources,
primarily UK focused, from September 2017 to September Source:
2018.
Compared to other tech-related topics that gain large amounts of coverage in European
news sources, it is notable that articles related to diversity and inclusion are more likely to
Compared to other tech-related topics that gain large amounts of coverage in European news sources, it is notable
be led by a negative sentiment.
that articles related to diversity and inclusion are more likely to be led by a negative sentiment.
Share of total stories per topic by sentiment Fundraising
summary
LEGEND Exits (IPOs & M&A)
Positive
Neutral
Negative Blockchain
Artificial Intelligence
Diversity & Inclusion
0 20 40 60 80 100
% of total stories
Note:
Based on ~3,000 stories across 843 European news sources
(primarily UK focused) from Septemeber 2017 to September Source:
2018.
&
32 In Partnership with www.thestateofeuropeantech.com

03.1 We’ve Got a Problem Photo: Samuli Pentti / Sami Valikangas
Many stories on diversity and inclusion have a negative sentiment and they are more likely
to drive more engagement on social media. In fact, news articles related to diversity and
inclusion that are classified with a negative sentiment drive 42% of all social engagement
Many stories on diversity and inclusion have a negative sentiment and they are more likely to drive more
engagement on social media. In fact, news articles related to diversity and inclusion that are classiïed with a
around the topic as a whole, despite those same stories accounting for just 11% of everything
negative sentiment drive 42% of all social engagement around the topic as a whole, despite those same stories
written on the topic. Are we sending enough positive messages to underrepresented
accounting for just 11% of everything written on the topic. Are we sending enough positive messages to
communities to join the tech industry, or are we in danger of further reinforcing the deeply
underrepresented communities to join the tech industry, or are we in danger of further reinforcing the deeply
entrenched stereotypes that have made tech so unwelcoming to these groups?
entrenched stereotypes that have made tech so unwelcoming to these groups?
Share of total social engagement per topic by Fundraising
sentiment summary
LEGEND Exits (IPOs & M&A)
Positive
Neutral
Negative Blockchain
Artificial Intelligence
Diversity & Inclusion
0 20 40 60 80 100
% of total sentiment
Note:
Based on ~3,000 stories across 843 European news sources
(primarily UK focused) from Septemeber 2017 to September Source:
2018.
The entire ecosystem as a whole needs to challenge
itself to make concrete commitments and change.
“ Europe’s VC industry is missing out on returns because we are lacking
in diversity. Startups are missing out on performance because
they lack diversity. That means both diversity in our teams and the
founders that we back. This means diversity not just of gender,
but in terms of background, race, ethnicity, physical and cognitive
differences. The entire ecosystem as a whole needs to challenge
itself to make concrete commitments and change.”
Niklas Zennström
Atomico
33 In Partnership with & www.thestateofeuropeantech.com

We’re All Part of the Problem
Despite many voices in the industry taking a negative view on the level of inclusion in
Despite many voices in the industry taking a negative view on the level of inclusion in Europe's tech industry,
Europe’s tech industry, people are much more likely to believe that the culture in their own
people are much more likely to believe that the culture in their own companies is inclusive. In fact, more than three
companies is inclusive. In fact, more than three-quarters of founders or employees at
quarters of founders or employees at Europe's private tech companies perceive their company's culture to be
Europe’s private tech companies perceive their company’s culture to be inclusive.
inclusive.
DATASET: OCCUPATION
The culture at my tech company is inclusive Occupation
Founder or startup/scale-up employee
LEGEND
Agree Investor
Neither agree nor disagree
Disagree Policymaker or public sector employee
Other
0 20 40 60 80 100
% of respondents
Source:
DATASET: GENDER
Gender
Female
Male
0 20 40 60 80 100
d % of respon ents
Source:
&
34 In Partnership with www.thestateofeuropeantech.com
Photo: Petri Anttila

03.2 We’re All Part of the Problem
People in the European tech ecosystem are split in their views on whether it is inclusive.
While a majority of men think it is inclusive, only 38% of women agree. Female investors
People in the European tech ecosystem are split in their views on whether it is inclusive. While a majority of men
on the other hand, who are arguably able to take a broader view given the number of
think it is inclusive, only 38% of women agree. Female investors on the other hand, who are arguably able to take a
companies they meet, are much less positive, with 45% disagreeing that the industry is
broader view given the number of companies they meet, are much less positive with 45% disgreeing that the
inclusive versus 36% that agree.
industry is inclusive versus 36% that agree.
The European tech industry is inclusive DATASET: GENDER
LEGEND Female
Agree
Neither agree nor disagree
Male
Disagree
People in the European tech ecosystem are split in their views on whether it is inclusive. While a majority of men
0 20 40 60 80 100
think it is inclusive, only 38% of women agree. Female investors on the other hand, who are arguably able to take a
% of respondents
broader view given the number of companies they meet, are much less positive with 45% disgreeing that the
industry is inclusive versus 36% that agree.
DATASET: FOUNDER/INVESTOR
Source:
The European tech industry is inclusive Female founder or startup/scale-up
DATASET: FOUNDERS/INVESTORS employee
LEGEND
Agree
People in the European tech ecosystem are split in their views on whether it is inclusive. While a majority of men
Female investor
Neither agree nor disagree
think it is inclusive, only 38% of women agree. Female investors on the other hand, who are arguably able to take a
Disagree
broader view given the number of companies they meet, are much less positive with 45% disgreeing that the
Male founder or startup/scale-up
industry is inclusive versus 36% that agree.
employee
The European tech industry is inclusive
DATASET: EXPERIENCED DISCRIMINATION Male investor
LEGEND
Agree 0 20 40 60 80 100
% of respondents
Neither agree nor disagree
Disagree DATASET: EXPERIENCED DISCRIMINATION
Source:
Experienced discrimination
Not experienced discrimination
0 20 40 60 80 100
% of respondents
Source:
The industry’s perception of its own inclusiveness is undermined by what survey
The industry's perception of its own inclusiveness stands is undermined by what survey respondents shared about
respondents shared about their individual experiences of discrimination while working
their experiences with discrimination while working in European tech. 46% of women state that they have
in European tech. 46% of women state that they have experienced discrimination.
experienced discrimination.
Have you ever experienced discrimination Central Europe & Baltics 32%
while working in the European tech industry? 10%
DACH 62%
22%
LEGEND
Eastern Europe 35%
Female 26%
Male 49%
France & Benelux
12%
Nordics 39%
18%
Southern Europe 42%
14%
UK & Ireland 50%
15%
0 10 20 30 40 50 60 70
% of respondents
Source:
&
35 In Partnership with www.thestateofeuropeantech.com

03.2 We’re All Part of the Problem
Women are experiencing an alarming level of DISCRIMINATION IN THE EUROPEAN TECH INDUSTRY
discrimination in the European tech industry
of female respondents have
% experienced some form of
46 discrimination while working in the
European tech industry
“ Diversity is a key challenge facing the tech ecosystem here in Europe,
and it is ironic that more companies are not looking to address that
Companies are not looking challenge when talent is also such a key issue for them. Companies
widely and deeply enough for are not looking widely and deeply enough for diverse talent. Founders
diverse talent. Founders need need to take ownership of this as they scale.”
to take ownership of this as Baroness Martha Lane Fox
they scale. Doteveryone
Discrimination based on gender might be the most visible and quantifiable, but it is not the
only form of discrimination that exists at worrying levels in the European tech ecosystem.
Discrimination based on gender might be the most visible and quanti able, but it is from the only form of
A meaningful number of respondents have experienced discrimination based on age and
discrimination that exists at worrying levels in the European tech ecosystem. Meaningful numbers of respondents
ethnicity too. The survey can’t accurately quantify the level of discrimination based on
have experienced discrimination based on age and ethnicity too. The survey can't accurately quantify the level of
disability or sexual orientation, but the data points to these being very prevalent here too.
discrimination based on disability of sexual orientation, but the data points to these being very prevalent here too.
Types of discrimination experienced by 40%
Age
people who have experienced any form of it 39%
when working in European tech 90%
Gender
32%
LEGEND 6%
Female Sexual orientation
12%
Male 11%
Ethnicity
32%
1%
Disability
5%
3%
Religion
11%
0 20 40 60 80 10
0
Source: % of respondents that have experienced each form of discrimination
Note:
The respondents' mix in self-identi ed ethnicity: 84% White,
5% Asian, 1% Black/African/Caribbean, 3% Mixed/Multiple, 2%
Other, 4% Prefer not to say.
The underrepresentation of people from less privileged
socio-economic backgrounds or persons with disabilities
seems to be missing from the conversation entirely.
“ In Europe we have blindly imported Silicon Valley’s conversation
on diversity and inclusion, which is often too narrow in scope, and
further marginalises other underrepresented groups or leaves
itself vulnerable to accusations of identity politics. For example, the
underrepresentation of people from less privileged socio-economic
backgrounds or persons with disabilities seems to be missing from
the conversation entirely.”
Steve O’Hear
TechCrunch
&
36 In Partnership with www.thestateofeuropeantech.com

03.2 We’re All Part of the Problem
This is exemplified by the fact that people of Black, African or Caribbean
ethnicity that are working in the European tech ecosystem are more
This is exempliïed by the fact that people of Black, African or Caribbean ethnicity that are working in the European
likely to have experienced discrimination than not.
tech ecosystem are more likely to have experienced discrimination than not.
Share of respondents who have experienced Asian 35%
discrimination by self-deïned ethnicity
LEGEND Black/African/Caribbean 55%
% of respondents who have experienced
discrimination
Mixed/Multiple 33%
Other 39%
White 22%
0 10 20 30 40 50 60
% of respondents who have experienced discrimination
Note:
The sample size for all ethnicities is not large, but this fact Source:
itself tells a story of its own.
&
37 In Partnership with www.thestateofeuropeantech.com
Photo: Kai Kuusisto / Petri Anttila

Accelerating Change
In the wake of high profile stories of discrimination in the tech industry, the issue of
diversity and inclusion has seen an increased focus. According to many respondents,
In the wake of high pro le stories of discrimination in the tech industry, the issue of diversity and inclusion has
this changed how many now behave. 45% of women and 36% of men agree that
seen an increased focus. This has, according to respondents, changed how many now behave. 45% of women and
they’ve made changes to their behaviour in the last 12 months.
36% of men agree that they've made changes to their behaviour in the last 12 months.
I have changed my behaviour as a result of
increased focus on diversity and inclusion
LEGEND Female
Agree
Neither agree nor disagree
Disagree
Male
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Source:
“ At Klarna, we now have over 80 nationalities, with over 55 in our
Stockholm HQ alone. I am amazed that we have somehow managed
Diversity of thinking and to attract such talented people from across the globe to this small
experience fuels innovation city in the north with dark winters. Most of our employees have
moved for their job and if the culture is not open or enabling people
and drives market growth. to speak their voice and feel like they can make an impact, diversity
To put it simply, diverse does not matter alone, if it’s simply not inclusive and people will not
teams create better stay or thrive. To scale and stay competitive in the tech industry, we
benefit massively from experiences of people from many different
products and solutions types of backgrounds in building solutions. Diversity of thinking
and experience fuels innovation and drives market growth. To put it
simply, diverse teams create better products and solutions.”
Sebastian Siemiatkowski
Klarna
“ By investing outside of the homogeneous networks of traditional
venture capital we believe we can make great return and also drive
change in society. The key to diversity is giving more entrepreneurs
The key to diversity is giving the right keys to grow their companies because it will create new
more entrepreneurs the employers, role models and owners.”
right keys to grow their Sara Wimmercranz / Susanne Najafi
companies because it will Backingminds
create new employers, role
models and owners.
&
38 In Partnership with www.thestateofeuropeantech.com

03.3 Accelerating Change Photo: Anrietta Kuosku
One way to explore the extent to which the European tech industry is tackling diversity and
One way to explore the extent to which the European tech industry is tackling diversity and inclusion is by
inclusion is by examining the level of adoption of different policies that can help to enable a
One way to explore the extent to which the European tech industry is tackling diversity and inclusion is by
examining the level of adoption of different policies that can help to enable a more diverse and inclusive company
more diverse and inclusive company culture. Flexible working, for example, has a high level
examining the level of adoption of different policies that can help to enable a more diverse and inclusive company
culture. Flexible working, for example, has a high level of adoption among European tech companies.
of adoption among European tech companies.
culture. Flexible working, for example, has a high level of adoption among European tech companies.
My company has a exible working policy DATASET: ALL RESPONDENTS
My company has a exible working policy
DATASET: ALL RESPONDENTS
DATASET: ALL RESPONDENTS
LEGEND All respondents 91% 9%
LEGEND All respondents 91% 9%
Yes
Yes 0 10 20 30 40 50 60 70 80 90 100
No
One way to explore the extent to which the European tech industry is tackling diversity and inclusion is by
% of respondents
No 0 10 20 30 40 50 60 70 80 90 100
% of respondents
examining the level of adoption of different policies that can help to enable a more diverse and inclusive company
culture. Flexible working, for example, has a high level of adoption among European tech companies.
Source:
Note: DATASET: INDUSTRY
Source:
Company size only includes founder and startup/scale-up
Note:
employees.
My company has a exible working policy
Company size only includes founder and startup/scale-up
employees. Tech 92% 8%
DATASET: INDUSTRY
LEGEND
Yes Non-tech
No 90% 10%
One way to explore the extent to which the European tech industry is tackling diversity and inclusion is by
examining the level of adoption of different policies that can help to enable a more diverse and inclusive company
0 10 20 30 40 50 60 70 80 90 100
culture. Flexible working, for example, has a high level of adoption among European tech companies.
% of respondents
My company has a exible working policy DATASET: COMPANY SIZE BY # OF EMPLOYEES
Source:
DATASET: COMPANY SIZE BY # OF EMPLOYEES
LEGEND
Yes <=10 94% 6%
No
Note:
Company size only includes founder and startup/scale-up 11-100 92% 8%
employees.
100+ 88% 12%
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note:
Note:
Company size only includes founder and startup/scale-up Source:
Company size only includes founder and startup/scale-up
employees.
employees.
&
39 In Partnership with www.thestateofeuropeantech.com

03.3 Accelerating Change
Similarly, founders and employees of Europe’s private tech startups and scale-ups report
high levels of adoption of dedicated parental leave policies, though there is a marked
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
difference based on company size. In fact, nearly 40% of companies that are still fewer
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
than 10 employees have yet to put in place a parental leave policy
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
My company has a parental leave policy DATASET: ALL RESPONDENTS
LEGEND All respondents 78% 22%
Yes
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
No
0 10 20 30 40 50 60 70 80 90 100
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
DATASET: INDUSTRY
My company has a parental leave policy
DATASET: INDUSTRY
Tech 74% 26%
LEGEND
Yes
No Non-tech 87% 13%
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
Note:
Company size only includes founder and startup/scale-up
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
employees.
0 10 20 30 40 50 60 70 80 90 100
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
My company has a parental leave policy DATASET: COMPANY SIZE BY # OF EMPLOYEES
DATASET: COMPANY SIZE BY # OF EMPLOYEES
LEGEND <=10 62% 38%
Yes
No 11-100 75% 25%
Note:
Company size only includes founder and startup/scale-up 100+ 88% 12%
employees.
Note: 0 10 20 30 40 50 60 70 80 90 100
Company size only includes founder and startup/scale-up % of respondents
employees.
Flexible working and parental leave policies are important steps towards enabling a
more diverse workforce, but may not be sufficient on their own. Interestingly, a large
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
percentage of companies, especially smaller ones, have not yet implemented an overall
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
diversity and inclusion policy.
My company has a diversity & inclusion policy DATASET: ALL RESPONDENTS
LEGEND All respondents 53% 47%
Yes
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
No
0 10 20 30 40 50 60 70 80 90 100
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
DATASET: INDUSTRY
My company has a parental leave policy
DATASET: INDUSTRY
Tech 48% 52%
LEGEND
Yes
No Non-tech 62% 38%
Note:
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
Company size only includes founder and startup/scale-up
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
employees.
0 10 20 30 40 50 60 70 80 90 100
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
My company has a parental leave policy DATASET: COMPANY SIZE BY # OF EMPLOYEES
DATASET: COMPANY SIZE BY # OF EMPLOYEES
LEGEND <=10 41% 59%
Yes
No 11-100 42% 58%
Note:
Company size only includes founder and startup/scale-up 100+ 58% 42%
employees.
Note:
Company size only includes founder and startup/scale-up 0 10 20 30 40 50 60 70 80 90 100
employees. % of respondents
&
40 In Partnership with www.thestateofeuropeantech.com

03.3 Accelerating Change
Even more targeted initiatives, such as specific diversity & inclusion hiring policies, are still
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
uncommon among European tech companies. It is clear here too that many companies appear
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
to delay putting in place specific D&I policies until they scale to a large number of employees.
My company has specific diversity DATASET: ALL RESPONDENTS
& inclusion hiring policies
LEGEND All respondents 45% 55%
Yes
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
No
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
0 10 20 30 40 50 60 70 80 90 100
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
My company has a parental leave policy DATASET: INDUSTRY
DATASET: INDUSTRY
Tech 43% 57%
LEGEND
Yes
No Non-tech 51% 49%
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
Note:
Company size only includes founder and startup/scale-up
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
employees.
0 10 20 30 40 50 60 70 80 90 100
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
My company has a parental leave policy DATASET: COMPANY SIZE BY # OF EMPLOYEES
DATASET: COMPANY SIZE BY # OF EMPLOYEES
LEGEND <=10 36% 64%
Yes
No 11-100 38% 62%
Note:
Company size only includes founder and startup/scale-up 100+ 52% 48%
employees.
Note: 0 10 20 30 40 50 60 70 80 90 100
Company size only includes founder and startup/scale-up
employees. % of respondents
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
The fact that such policies remain far from widespread in the European tech industries may be
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
compounded by the fact that few companies have appointed dedicated D&I representatives.
My company has a diversity & DATASET: ALL RESPONDENTS
inclusion representative
LEGEND All respondents 35% 65%
Yes
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
No
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
0 10 20 30 40 50 60 70 80 90 100
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
My company has a parental leave policy DATASET: INDUSTRY
DATASET: INDUSTRY
Tech 32% 68%
LEGEND
Yes
No Non-tech 44% 56%
Similarly, founders and employees of Europe's private tech startups and scaleups report high levels of adoption of
Note:
Company size only includes founder and startup/scale-up
dedicated parental leave policies, though there is a marked difference based on company size. In fact, nearly 40%
employees. 0 10 20 30 40 50 60 70 80 90 100
of companies that are still fewer than 10 employees have yet to put in place a parental leave policy
% of respondents
My company has a parental leave policy DATASET: COMPANY SIZE BY # OF EMPLOYEES
DATASET: COMPANY SIZE BY # OF EMPLOYEES
LEGEND <=10 26% 74%
Yes
No 11-100 24% 76%
Note:
Company size only includes founder and startup/scale-up 100+ 36% 64%
employees.
Note:
Company size only includes founder and startup/scale-up 0 10 20 30 40 50 60 70 80 90 100
employees.
% of respondents
&
41 In Partnership with www.thestateofeuropeantech.com

03.3 Accelerating Change
There are, of course, reasons to be optimistic about the possibility of
achieving positive change in the European tech ecosystem. In the last 12
months, for example, there has been strong momentum around initiatives
There are, of course, reasons to be optimistic about the possibility of achieving positive change in the European
focused on improving Diversity & Inclusion in the European tech ecosystem.
tech ecosystem. In the last 12 months, for example, there has been strong momentum around initiatives focused
In the UK alone, Diversity VC has identified 28 separate initiatives that are all
on improving Diversity & Inclusion in the European tech ecosystem. In the UK alone, Diversity VC has identiïed 28
tackling diversity and inclusion in various different ways.
separate initiatives that are all tackling diversity and inclusion in various different ways.
Type of Short description URL
Selected Diversity & Inclusion Initiatives in Initiative
the UK AllBright Angel group Angel group and co-working club focussed on female founders https://www.allbrightcollective.com/
Angel Academe Angel group Angel group focused on female founders & angels http://www.angelacademe.com/
Astia Angels Angel group Angel group focused on female founders & angels http://astia.org/astia-angels/
Rare Seed Capital Angel group Angel group focused on BAME invetsors https://www.rareseedcapital.com/
23 Code Street Coding school Teaching women in the UK and India http://www.23codestreet.com/
One Tech Collective / Focussing on promoting entreprenrship to BAME / female http://capitalenterprise.org/one-
network entrepreneurs tech/
Hustle Crew Community Community for entrepreneurial women of colour http://www.hustlecrew.co/
People of Color in Tech Community Community for entrepreneurial people of colour https://peopleofcolorintech.com/
Techish Community Podcast / community showcasing diverse tech rolemodels http://www.techishpod.com/
YSYS Community Community group of diverse entrepreneurs https://www.thisisysys.com/
Accelerate Her Company Born out of Founders Forum, consulting fast growth tech https://accelerateher.co/#/
companies
Inclusive Boards Company Helping recruit more ethnically diverse boards http://www.inclusiveboards.co.uk/
Success Talks Event series Platform and event series showcasing diverse speakers http://www.success-talks.co.uk/
Jane VC Fund Fund focused on female founders https://www.janevc.com/
Merian Ventures Fund Fund focused on female founders https://www.merianventures.com/
Voulez Capital Fund Fund focused on female founders https://www.voulez-capital.com/
Backstage Capital Fund / Accelerator in the UK focussed on LGBT, people of colour and https://backstagecapital.com/
Accelerator female founders
Divinc Incubator Young Enterprise focused on inner city schools http://wearedivinc.com/
Muslamic Makers Meet-up group Meet-up group for Muslims in Tech https://muslamicmakers.com/
50/50 Pledge Network A pledge for events and conferences to be 50:50 represented http://www.5050pledge.com/
FemStreet Newsletter Start-ups / VC https://www.femstreet.com/
30% Club Non-proït Dedicated to increasing women on boards https://30percentclub.org/
Code First: Girls Non-proït Non-proït teaching women how to code and helping them get work https://www.codeïrstgirls.org.uk/
in tech companies
Color in Tech Non-proït Non-proït promoting a fairer tech industry https://www.colorintech.org/
DevelopHer Non-proït Non-proït social enterprise promoting women in technology https://developher.org/
Dot Everyone Non-proït Focused on tech companies https://doteveryone.org.uk/
Level 20 Non-proït Focused mainly on women in the Private Equity and LP community https://www.level20.org/
Fearless Futures Training group Training focussed on Social Justice http://www.fearlessfutures.org/
Note:
This list is illustrative and not exhaustive. If you would like to Source:
add your initiatives to this list, please contact us at
[email protected] and we will update the list.
Our users are at the core of
everything we do, and we’ve
hired a diverse team to reflect
our growing customer base. Sharmadean Reid
Beautystack
&
42 In Partnership with www.thestateofeuropeantech.com

Europe’s
Got Talent
People, Competition One of European tech’s greatest strengths is its deep talent
pool. A growing number of tech hubs are distributed across
all corners of the region. They are connected by flows of
and Movement Europeans and non-Europeans alike. Finally, a bright, new
generation is emerging; European founders are returning
from the Valley, and students are seizing the opportunity to
found their own startups.
ARTICLES
04.1 People Power
04.2 People Flows
04.3 An Ecosystem Powered by Migratory Talent
04.4 Competing for & Compensating Talent
04.5 The Next Generation
In Partnership with & www.thestateofeuropeantech.com

People Power
The next generation of European tech companies from hubs across the region are being
The next generation of European tech companies from hubs across the
built by experienced tech talent from previous generations
region are being built by experienced tech talent from previous generations
AMSTERDAM BARCELONA COPENHAGEN HELSINKI
Adeline Lee C. Bartek Kunowski Christian Holm Jussi Mäkinen
Director of Growth VP Product & Technology CTO CMO
Clue Tuenti, Amazon Citrix Rovio
Koen Bok Kritarth Chhabra Patrick Cournoyer Klaus Melakari
CEO Global Head of Business Dev. COO CTO
Facebook OnePlus, Uber FlightCar Microsoft, Nokia
Tom Watson Peter Van Kersen Phillip Chambers Tiina Nieminen
Director of Product VP People CEO Program Director
Pinterest, Facebook Foodora, Catawiki Citrix, Qype Microsoft, Nokia
LONDON MUNICH PARIS STOCKHOLM
Marina Theodosiou Frank Stephenson Odile Szabo Anna Fredrixon
Head of Credit Decision Science Head of Product Design VP Ecommerce & Marketing VP People
Aire, Funding Circle McLaren, Ferrari Vestiaire Collective, PriceMinister Truecaller, Capgemini
Meri Williams Remo Gerber Marty Ostermiller Peder Stahle
CTO CCO CFO Chief Product Officer
Moo, Marks & Spencer Gett, Groupon HireVue, Oracle (RightNow) iZettle, Vodafone
Tom Foster-Carter Meggy Sailer Pascal Gauthier Victoria Kopylov
Chief Operating Officer Global Head of Recruitment President General Counsel
Curve, Oscar Tesla Criteo Spotify, Mannheimer Swartling
Note: Note: This is intended as a representative selection of experienced talent that is
This is intended as a representative selection of experienced talent that is gained experience in
gained experience in previous European tech companies and is now helping to
previous European tech companies and is now helping to build a new generation of companies. It
Europe's professional developer talent pool is distributed
The State of European Tech 2018 build a new generation of companies. It should not be considered complete.
across all corners of the region should not be considered complete.
Europe’s professional developer talent pool is
Europe's professional developer talent pool is distributed
Map of professional developer distribution
across all corners of the region
distributed across all corners of the region
across Europe by country
Map of professional developer distribution
across Europe by country
LEGEND
upto 1,000,000
LEGEND
800,000 to 900,000
upto 850,400
700,000 to 800,000
680,320 to 765,360
595,280 to 680,320
600,000 to 700,000
510,240 to 595,280
500,000 to 600,000
425,200 to 510,240
400,000 to 500,000
340,160 to 425,200
255,120 to 340,160
300,000 to 400,000
170,080 to 255,120
200,000 to 300,000
85,040 to 170,080
100,000 to 200,000
upto 85,040
upto 100,000
Source:
&
44 In Partnership with www.thestateofeuropeantech.com
Source:

04.1 People Power
Europe’s professional developer workforce PROFESSIONAL DEVELOPER TALENT POOL
continues to grow strongly
professional developers in Europe, which
represents growth of 200,000 compared
5.7mto 5.5 million in 2017. This also compares to
4.4 million in the US, a number that stayed
flat year on year.
Germany, Europe’s largest country by population, is also home to the region’s largest
Germany, Europe's largest country by population, is also home to the region's largest single market for professional
single market for professional developer talent, followed very closely by the UK and
Germany, Europe's largest country by population, is also home to the region's largest single market for professional
developer talent, followed very closely by the UK and then France in a more distant third place
then France in a more distant third place
developer talent, followed very closely by the UK and then France in a more distant third place
# of professional developers Germany 851,000
# of professional developers Germany 851,000
by country (2018 and 2017) United Kingdom 830,500
by country (2018 and 2017) United Kingdom 830,500
TOP 10 France 491,800
TOP 10 France 491,800
LEGEND Russia 407,100
LEGEND 2018 Russia 407,100
Italy 308,900
2018 2017 Italy 308,900
Spain 308,500
2017 308,500
Spain Netherlands
310,000
Note: Netherlands Poland 310,000
Where data for 2017 was not available, 254,500
Note: this is shown as blank Poland Ukraine 254,500
Where data for 2017 was not available, 172,000
this is shown as blank Ukraine Sweden 172,000 176,000
Sweden 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000
176,000
Note: # of professional developers
Where data for 2017 was not available, this is 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000
shown as blank # of professional developers
Source:
Source:
Europe is home to at least 30 different hubs with 50,000 or more professional
Europe is home to at least 30 different hubs with 50,000 or more professional developers. It's three largest hubs
developers. Its three largest hubs for developers are London, Paris and Amsterdam,
Europe is home to at least 30 different hubs with 50,000 or more professional developers. It's three largest hubs
for developers are London, Paris and Amsterdam, which together are home to about 15% of the region's total
which together are home to about 15% of the region’s total developers.
for developers are London, Paris and Amsterdam, which together are home to about 15% of the region's total
developers
developers
Top 30 European cities by # of London 357,900
Top 30 European cities by # of London 357,900
professional developers in 2018 Paris 268,600
professional developers in 2018 Paris 268,600
TOP 10 Amsterdam 216,800
TOP 10 Amsterdam 216,800
LEGEND Cologne 165,900
LEGEND Professional developers Cologne 165,900
Professional developers Moscow 160,900
Moscow 160,900
Frankfurt am Main 120,700
Frankfurt am Main 120,700
Madrid 111,800
Madrid 111,800
Manchester 110,600
Manchester 110,600
Berlin 99,400
Berlin 99,400
Zurich 99,100
Zurich 99,100
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000
# of professional developers
# of professional developers
Source:
Source:
Germany’s largest hubs for professional developers PROFESSIONAL DEVELOPER TALENT POOL
might surprise you 165,900
professional developers in Cologne, Germany’s largest
hub for engineering talent
&
45 In Partnership with www.thestateofeuropeantech.com

People Flows
The UK is the number one destination for all international movers into the European
The UK is the number one destination for all international movers into the European tech ecosystem, but it is
tech ecosystem, but it is closely followed now by Germany and then France.
closely followed now by Germany and then France
Top 10 European destinations for all United Kingdom 20.9%
international movers into European tech in Germany 15.2%
2018
France 11.1%
LEGEND Netherlands 7.8%
Top 10 Destinations - 2018 Spain 6.7%
Ireland 4.4%
Switzerland 4.0%
Sweden 3.9%
Poland 3.0%
Belgium 2.6%
0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5
% of all international movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A 'mover' is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country or
industry sector for their primary employment between 2018
and 2017.
For additional context, it is worth analysing a similar dataset covering tech talent
For additional context, it is worth analysing a similar dataset covering tech talent movement in 2017 provided by
movement in 2017 provided by LinkedIn for last year’s State of European Tech.
LinkedIn for last year’s State of European Tech
Top 10 European destinations for all United Kingdom 21.5%
international movers into European tech in Germany 13.8%
2017
France 9.1%
LEGEND Netherlands 7.4%
Comparison to Similar Data from SOET 2017
Spain 7.3%
Ireland 6.1%
Switzerland 4.1%
Sweden 3.3%
Poland 3.9%
0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5
% of all international movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A ‘mover’ is deïned by LinkedIn as someone now Source:
working in the tech industry that has moved country for their
primary employment between 2017 & 2016. Belgium not
provided in 2017.
Germany and UK are now the joint top destinations MIGRANT TALENT IN EUROPEAN TECH
for migratory tech talent moving within the
European tech industry The same % of all-intra European
%movers within the European tech
14.6 industry end in either Germany or the
UK as their destination country.
&
46 In Partnership with www.thestateofeuropeantech.com

04.2 People Flows
Looking more closely at just migratory tech talent moving
Looking more closely at just intra-European migratory tech talent moving within
within Europe, Germany is now the joint #1 destination
the region, Germany is now the joint #1 destination together with the UK
together with the UK
Top 10 European destinations for intra- United Kingdom 14.6%
European movers within European tech Germany 14.6%
industry in 2018
Spain 8.5%
LEGEND France 8.1%
Top 10 destinations in 2018 Netherlands 7.7%
Switzerland 5.9%
Poland 4.2%
Ireland 4.0%
Sweden 3.4%
Italy 3.2%
0.0 2.5 5.0 7.5 10.0 12.5 15.0
% of intra-European movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A 'mover' is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country or
industry sector for their primary employment between 2018
and 2017.
For additional context, it is worth analysing a similar dataset covering tech talent
For additional context, it is worth analysing a similar dataset covering tech talent movement in 2017 provided by
movement in 2017 provided by LinkedIn for last year’s State of European Tech.
LinkedIn for last year’s State of European Tech
Top 10 European destinations for intra- United Kingdom 14.9%
European movers within European tech Germany 13.8%
industry in 2017
Spain 8.9%
LEGEND France 7.0%
Comparison to Similar Data from SOET 2017
Netherlands 7.0%
Switzerland 5.7%
Poland 5.3%
Ireland 6.9%
Sweden 2.9%
0.0 2.5 5.0 7.5 10.0 12.5 15.0
% of all intra-European movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A ‘mover’ is deïned by LinkedIn as someone now Source:
working in the tech industry that has moved country for their
primary employment between 2017 & 2016. Italy not provided in
2017.
The US is the largest destination of European tech talent moving outside of the
The US is the largest destination of European tech talent moving outside of the region, but other destinations are
region, but other destinations are now important too, such as Canada and Australia.
now important too, such as Canada and Australia.
Top 10 non-European destinations for United States 31.9%
European movers out of European tech in India 20.3%
2018
Canada 9.5%
LEGEND Australia 8.6%
Top 10 Destinations - 2018 China 3.5%
United Arab Emirates 2.5%
Brazil 2.2%
Singapore 2.0%
New Zealand 1.8%
Japan 1.5%
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
% of tech movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A 'mover' is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country or
industry sector for their primary employment between 2018
and 2017.
&
47 In Partnership with www.thestateofeuropeantech.com

04.2 People Flows
For additional context, it is worth analysing a similar dataset covering tech talent
For additional context, it is worth analysing a similar dataset covering tech talent movement in 2017 provided by
movement in 2017 provided by LinkedIn for last year’s State of European Tech.
LinkedIn for last year’s State of European Tech
Top 10 non-European destinations for United States 36.4%
European movers out of European tech in India 19.7%
2017
Canada 8.2%
LEGEND Australia 7.1%
Comparison to Similar Data from SOET 2017 China 3.1%
United Arab Emirates 3.1%
Brazil 1.8%
Singapore 3.1%
New Zealand 1.7%
Japan 1.4%
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
% of tech movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A ‘mover’ is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country for their
primary employment between 2017 and 2016.
India and the US account for more than 50% of the non-European
India and the US account for more than 50% of the non-
European talent moving into the European tech industry
talent moving into the European tech industry.
Top 10 non-European source countries for India 39.4%
movers into the European tech industry United States 16.9%
Brazil 7.5%
Tunisia 3.7%
Australia 3.3%
Morocco 3.2%
Canada 2.6%
China 2.0%
South Africa 1.5%
Other 1.5%
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.
0
% of non-European tech movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A 'mover' is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country or
industry sector for their primary employment between 2018
and 2017.
India and the US are more important sources of migratory talent moving into and
India and the US are more important sources of migratory talent moving into and within the European tech
within the European tech industry than any single European source country.
industry than any single European source country
Top 10 source countries for all movers into India 21%
and within the European tech industry United States 9%
United Kingdom 7%
Germany 5%
France 4%
Brazil 4%
Spain 3%
Italy 3%
Netherlands 2%
Russia 2%
0 3 5 8 10 13 15 18 20 23
% of tech movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A 'mover' is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country or
industry sector for their primary employment between 2018
and 2017.
&
48 In Partnership with www.thestateofeuropeantech.com

04.2 People Flows
The UK has seen a huge increase in the % of COMPETITION FOR TALENT
software engineer job postings that are defined
as ‘hard to fill’ increase year-on-year in the % of software
% engineer job postings in the UK that are
42 hard to fill, i.e. are posted for longer than
60 days in Indeed’s UK job site
As every company becomes a software company and
the need for software engineers and other tech roles
continues to grow, it will be even more crucial for
companies of all sizes look to solutions that will help them
hire quality candidates and to close the talent gap in tech.
“ People want to work at a company that has a mission they believe in.
No longer is talent just driven by compensation. Though we still see
that salary is a key factor candidates consider when evaluating an
offer, we also see candidates caring more about job location, work
flexibility, a good work environment, and meaningful work. As every
company becomes a software company and the need for software
engineers and other tech roles continues to grow, it will be even more
Raj Mukherjee crucial for companies of all sizes look to solutions that will help them
Indeed hire quality candidates and to close the talent gap in tech.”
World-class talent is moving to and returning to Europe from the
US to help build a new generation of European tech companies
Note:
This is intended as a representative selection of talent
that has moved to Europe from the US and should not be
considered complete.
&
49 In Partnership with www.thestateofeuropeantech.com

04.2 People Flows
Europe is growing as a destination of choice for US software engineers searching for
software engineer roles overseas, and now accounts for more than 20% of all cross-border
Europe is growing as a destination of choice for US software engineers searching for software engineer roles
searches, up 20% compared with 2017.
overseas, and now accounts for more than 20% of all cross-border searches, up 20% compared with 2017.
European share (%) of US-originated cross-
border searches containing 'software' and 20.8%
s20.0
e
'engineer' h
c
r
a
e
s

d 16.2%
e
LEGEND t
a
n 15.0
i
g
Share of US-originated cross-border searches (%) i
r
o
-
S
U

f
o

)
% 10.0
(

e
r
a
h
s

n
a
pe
o 5.0
r
u
E
0.0
2018 2017
Source:
The UK is the clear destination country of choice for US software engineers searching for
The UK is the clear destination country of choice for US software engineers searching for potential job postings in
The UK is the clear destination country of choice for US software engineers searching for potential job postings in
potential job postings in the European tech ecosystem.
the European tech ecosystem.
the European tech ecosystem.
13.96%
% share by destination country of US.- 13.96%
% share by destination country of US.- UK
UK
10.56%
originated cross-border searches containing 10.56%
originated cross-border searches containing
2.74%
'software' and 'engineer' 2.74%
'software' and 'engineer' Ireland
Ireland
1.73%
1.73%
LEGEND 1.46%
LEGEND Germany 1.46%
Germany 1.60%
2018 1.60%
2018
2017 0.84%
2017 Netherlands 0.84%
Netherlands 0.88%
0.88%
0.42%
France 0.42%
France 0.36%
0.36%
0.35%
Spain 0.35%
Spain 0.24%
0.24%
0.30%
Italy 0.30%
Italy 0.41%
0.41%
0.29%
Sweden 0.29%
Sweden 0.18%
0.18%
Belgium 0.15%
Belgium 0.15%
0.06%
0.06%
Denmark 0.10%
0.10%
Denmark 0.09%
0.09%
Portugal 0.10%
0.10%
Portugal 0.03%
0.03%
Austria 0.08%
0.08%
Austria 0.07%
0.07%
0.00 2.50 5.00 7.50 10.00 12.50 15.00
0.00 2.50 5.00 7.50 10.00 12.50 15.00
Share (%) by destination country of US-originated searches
Share (%) by destination country of US-originated searches
Source:
Source:
&
50 In Partnership with www.thestateofeuropeantech.com

An Ecosystem Powered by
Migratory Talent
By comparing the nationality of survey respondents with their country of residence, it’s
By comparing the nationality of survey respondents with their country of residence, it's possible to get a proxy for
possible to get a proxy for the relative share of migrant talent in different regions in Europe.
the relative share of migrant talent in different regions in Europe. The UK and Germany, led by London and Berlin,
The UK and Germany, led by London and Berlin, are the two most dependent on migrant talent.
are the two most dependent on migrant talent.
Founders' and startup/scale-up employees' UK & Ireland 44% 56%
backgrounds by subregion of residence
DACH 44% 56%
LEGEND
Immigrant France & Benelux 25% 75%
National
Southern Europe 22% 78%
Nordics 19% 81%
Central Europe & Baltics 16% 84%
Eastern Europe 6% 94%
0 20 40 60 80 100
% of respondents
Note:
Founder and private tech startup and scaleup employee Source:
respondents only.
The UK tech ecosystem is the most heavily MIGRANT TALENT IN EUROPEAN TECH
dependent on migrant talent of any in Europe
of founders and employees of private tech
% start-ups in the UK are migrants, more than
44 any other region
European tech startups are highly dependent on MIGRANT TALENT IN EUROPEAN TECH
talent that has migrated to work for companies
outside their home countries of founders and employees of private
% European tech startups who are working
28 outside of their home countries
Roughly half of the tech workforce has come
Roughly half of the tech workforce has come from abroad in
from abroad in four European hubs.
four European hubs
Selected European hubs by share of Berlin 46%
immigrants in tech workforce
LEGEND London 45%
Share of immigrants in the tech workforce (%)
Stockholm 24%
Paris 23%
Helsinki 14%
0 5 10 15 20 25 30 35 40 45 50
% of immigrants in tech workforce
Note:
Only respondents working in the tech industry. Cities with less Source:
than 100 respondents ïltered out.
&
51 In Partnership with www.thestateofeuropeantech.com

04.3 An Ecosystem Powered by Migratory Talent
The UK is the #1 source of outbound talent leaving to move to
out of Europe, accounting for nearly 2.8x as much outbound
The UK is the #1 source of outbound talent leaving to move to another country within Europe, accounting for nearly
talent as the next largest source country in Europe.
2.8x as much outbound talent as the next largest source country in Europe
Top 10 European source countries for non- United Kingdom 34.9%
European destinations in 2018 France 12.3%
Germany 8.8%
LEGEND
Top 10 Sources - 2018 Netherlands 4.6%
Spain 4.3%
Russia 3.8%
Ireland 3.7%
Sweden 2.6%
Switzerland 2.6%
Ukraine 2.5%
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
% of tech movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A 'mover' is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country or
industry sector for their primary employment between 2018
and 2017.
For additional context, it is worth analysing a similar dataset
covering tech talent movement in 2017 provided by LinkedIn
For additional context, it is worth analysing a similar dataset covering tech talent movement in 2017 provided by
for last year’s State of European Tech.
LinkedIn for last year’s State of European Tech
Top 10 European source countries for non- United Kingdom 38.0%
European destinations in 2017 France 12.4%
LEGEND Germany 7.5%
Comparison to Similar Data from SOET 2017 Netherlands 4.2%
Spain 3.7%
Ireland 5.1%
Sweden 2.7%
Switzerland 2.4%
Ukraine 3.2%
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
% of tech movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A ‘mover’ is deïned by LinkedIn as someone now Source:
working in the tech industry that has moved country for their
primary employment between 2017 % 2016. Russia not
provided in 2017.
Skilled immigration difficulties are taking a toll on
Europe’s scaleups, and we are in bad need of more
openness in terms of talent acquisition.
“ I see two major threats, the first one being education and talent.
Europe is among the top in terms of talent & research, but it shouldn’t
be taken for granted. The challenge is that if we don’t see forward-
thinking, long-term and brave investments in the field of education,
we might lose this edge that’s keeping Europe on the surface. Skilled
immigration difficulties are taking a toll on Europe’s scaleups, and
we are in bad need of more openness in terms of talent acquisition –
Rasmus Ekholm startup visas being great initiatives towards solving this problem.”
Slush
&
52 In Partnership with www.thestateofeuropeantech.com

04.3 An Ecosystem Powered by Migratory Talent
The UK is the #1 source country for tech talent that is moving within and out of Europe, but it has
The UK is the #1 source country for tech talent that is moving within and out of Europe, but it has a much larger
a much larger share of those moving outside of the European tech ecosystem than within it.
share of those moving outside of the European tech ecosystem than within it
United Kingdom 15.1%
Top 10 European source countries of 34.9%
European movers in 2018 Germany 9.6%
France 8.9%
LEGEND 12.3%
Spain 7.0%
Moving Inside Europe
Moving Outside Europe Italy 5.8%
n/a%
Netherlands 4.8%
Russia 4.4%
Poland 4.3%
n/a%
Ireland 3.9%
Turkey 3.1%
n/a%
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
% of tech movers
Note:
All interpretations of LinkedIn data made by Atomico, not
LinkedIn. A 'mover' is deïned by LinkedIn as someone now Source:
working in tech industry who has moved country or industry
sector for primary employment between 2018 & 2017. PL & TR
outside not provided.
The UK is today the #1 destination for non-European talent, but faces strong challenges as
The UK is today the #1 destination for non-European talent, but faces strong challenges as the destination of
the destination of choice as the range of viable alternative hubs across Europe expands,
choice as the range of viable alternative hubs across Europe expands, especially in Germany, France and the
especially in Germany, France and the Netherlands.
Netherlands
Top 10 European destinations for non- United Kingdom 26.6%
European movers into European tech Germany 15.7%
industry in 2018
France 13.9%
LEGEND Netherlands 7.9%
Top 10 destinations in 2018 Spain 5.1%
Ireland 4.7%
Sweden 4.3%
Portugal 2.9%
Belgium 2.5%
Switzerland 2.1%
0.0 5.0 10.0 15.0 20.0 25.0 30.0
% of non-European movers
Note:
All interpretations of the LinkedIn data are made by Atomico,
not LinkedIn. A 'mover' is deïned by LinkedIn as somebody now Source:
working in the tech industry that has moved country or
industry sector for their primary employment between 2018
and 2017.
For London to retain its “ I remain optimistic about the future of European tech - never before
have we come as close to creating the next global tech giant. Of
title as Europe’s fintech course the uncertainty surrounding Brexit is a challenge. Lots of
capital we must continue fintechs like TransferWise will be opening additional offices across
the continent to mitigate Brexit risk, and there will certainly be
to attract talent, and hubs like Berlin, Paris and Amsterdam that benefit from start-up
jobs coming to their cities. For London to retain its title as Europe’s
make it easy for that fintech capital we must continue to attract talent, and make it easy
for that talent to come here. We hire to our headquarters from all
talent to come here. over the world, roughly 50% of our London office were not born in the
UK. Engineers and product managers are vital, but we recruit from
overseas across all our teams. Regulation must be flexible enough to
encompass rapidly evolving technical and marketing specialist roles.“
Taavet Hinrikus
TransferWise
&
53 In Partnership with www.thestateofeuropeantech.com

04.3 An Ecosystem Powered by Migratory Talent
For additional context, it is worth analysing a similar dataset covering tech talent movement in 2017 provided by
LinkedIn for last year’s State of European Tech
For additional context, it is worth analysing a similar dataset covering tech talent
For additional context, it is worth analysing a similar dataset covering tech talent movement in 2017 provided by
movement in 2017 provided by LinkedIn for last year’s State of European Tech.
LinkedIn for last year’s State of European Tech
Top 10 European destinations for non- United Kingdom 32.6%
European movers into European tech United Kingdom 32.6%
Top 10 European destinations for non- Germany 11.7%
industry in 2017
European movers into European tech
Germany 11.7%
industry in 2017 France 10.7%
LEGEND
Comparison to Similar Data from SOET 2017 France 6.2% 10.7%
LEGEND Netherlands
Comparison to Similar Data from SOET 2017 Netherlands 6.2%
Spain 5.5%
Spain 5.5%
Ireland 5.0%
Ireland 5.0%
Sweden 3.5%
Sweden 3.5%
Switzerland 2.3%
Switzerland 2.3%
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
% of non-European movers
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
Note: % of non-European movers
All interpretations of LinkedIn data made by Atomico, not
LinkedIn. A ‘mover’ is deïned by LinkedIn as someone now Source:
Note:
working in tech industry who has moved country for primary
All interpretations of LinkedIn data made by Atomico, not
employment between 2017 & 2016. Portugal and Belgium not
LinkedIn. A ‘mover’ is deïned by LinkedIn as someone now Source:
provided by LinkedIn.
working in tech industry who has moved country for primary
employment between 2017 & 2016. Portugal and Belgium not
provided by LinkedIn.
Though the largest share of founders in each region have seen no change in the trend of
candidates relocating internationally to join their business, they are significantly more
Thought the largest share of founders in each region have seen no change in the trend of candidates relocating
likely to have experienced an increase in this trend in the past 12 months, rather than a
internationally to join their business, they are signiïcantly more likely to have experienced an increase in this trend
decline. A larger share of founders in France & Benelux and DACH have seen an increase in
in the past 12 months, rather than a decline. A larger share of founders in France & Benelux and DACH have seen an
this trend, while UK fincoreuansed ienr ts ahis trre menod,r we lhiilkee Uly tK fohuann adernsy r aree mgioorn te lio hkelya tve shan aeneyn a d regioenc troe haasvee. seen a decrease.
% change in founders' view on change in Central Europe & Baltics
candidates relocating internationally to join
their company, by subregion (past 12m) DACH
LEGEND Eastern Europe
Increase
No change France & Benelux
Decrease
Nordics
Southern Europe
UK & Ireland
0 20 40 60 80 100
% of respondents
Note:
Respondents stating 'Not able to comment' ïltered out. Source:
Founder respondents only.
Taking the trend from the opposite perspective and looking at trends of founders reporting
Taking the trend from the opposite perspective and looking at trends of founders reporting changes in employee
changes in employee interest to leave the country by relocating overseas, founders in the UK
interest to leave the country by relocating overseas, founders in the UK & Ireland and in Eastern Europe are seeing
the largest increase compared to other regions.
& Ireland and in Eastern Europe are seeing the largest increase compared to other regions.
% change in founders' view on change in Central Europe & Baltics
employees leaving their country to relocate
to another country, by subregion (past 12m) DACH
LEGEND Eastern Europe
Increase
No change France & Benelux
Decrease
Nordics
Southern Europe
UK & Ireland
0 20 40 60 80 100
% of respondents
Note:
Respondents stating 'Not able to comment' ïltered out. Source:
Founder respondents only.
&
54 In Partnership with www.thestateofeuropeantech.com

Competing For &
Compensating Talent
There is a wide variance in the level of average founder compensation at every funding round
There is a wide variance in the level of average founder compensation at every funding round stage between
stage between Europe and the US, both in terms of base salary and incentive pay.
Europe and the US, both in terms of base salary and incentive pay
400,000
Founder base salary and incentives by
Funding Round stage in 50th percentile by
region
300,000
LEGEND
Base Salary D
S 200,000
Incentive Pay U
Note:
Incentive pay is cash bonus or incentive, which is not related to
equity or equity value. 100,000
0
Europe US Europe US Europe US Europe US
Seed Series A Series B Series C
Source:
While there are differences in average pay between European and US founders, the average
While there are differences in average pay between European and US founders, the average level of founder equity
level of founder equity by funding round stage is closely aligned from Series A onwards.
by funding round stage is closely aligned from Series A onwards
Founder equity by funding round stage in
50th percentile by region 34%
30 29%
LEGEND
Europe y
t
i
US qu
e

r
e 20 19% 19%
d
n
u
o
f

f
o
13%
% 12% 13%
10%
10
0
Seed Funding Only Post Series A Post Series B Post Series C
Note:
Advanced-HR’s compensation report details founder’s cash
and equity pay as reported by participating private, venture- Source:
backed companies. Equity data is displayed as a percentage of
European tech companies have historically either chosen not to use or have not been
fully diluted shares. Equity not related to salary nor incentives.
able to use stock options as an incentive tool for employees in the same way as has been
standard in the US Advanced-HR’s latest data suggests that there is positive change afoot
in Europe. Based on their latest employee ownership report, the average level of employee
The average level of employee ownership by funding round
ownership by funding round stage in Europe is broadly in line with levels in the US.
stage is broadly similar in Europe compared to the US
Employee ownership by funding round stage 20.0
in 50th percentile by region
LEGEND 15.0
Executives p
i
h
s
Staff + Other r
e
wn10.0
Unissued o

f
o

%
Note:
This details equity held by executive-level employees, staff-
level employees and remaining unissued options. It excludes 5.0
Founder’s Shares and equity allocations displayed as a
percentage of fully diluted shares. Equity not related to salary
nor incentives
0.0
Europe US Europe US Europe US Europe US
Seed Series A Series B Series C
Source:
&
55 In Partnership with www.thestateofeuropeantech.com

04.4 Competing For & Compensating Talent
A positive effect of awareness-building campaigns, led in part by strong arguments from
Europe’s leading VCs, is evident in a reported increase in employee awareness of stock
A positive effect of awareness-building campaigns, led in part by strong arguments from Europe's leading VCs, is
options as a form of compensation. This increased awareness is most prevalent in larger
evident in a reported increase in employee awareness of stock options as a form of compensation. This increased
companies of 100 employees or more.
awareness is most prevalent in larger companies of 100 employees or more.
Founders' view on change in employees
awareness of stock options as form of <=10
compensation by company size
LEGEND
Increase
No change 11-100
Decrease
100+
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note:
Respondents stating 'Not able to comment' ïltered out. Source:
Founder respondents only.
A majority of European founders of larger companies STOCK OPTION AWARENESS
of 100+ employees report an increase in employee
awareness of stock options of founders of European private tech
% start-up or scale-ups with more than 100
56 employees report an increase in employee
awareness of stock options as a form of
compensation
As Europe’s tech ecosystem continues to evolve and mature, it is helping to drive greater
As Europe's tech ecosystem continues to evolve and mature, it is helping to drive greater access to talent that has
access to talent that has built significant and relevant prior experience at other startups or
built signiïcant and relevant prior experience at other startups or scaleups. This is especially true for the region's
scaleups. This is especially true for the region’s more scaled startups with 55% of founders
more scaled startups with 55% of founders of companies with more than 100 employees reporting an increase in
of companies with more than 100 employees reporting an increase in this talent trend.
this talent trend.
% change in founders' view on change in
candidates with signiïcant prior <=10
startup/scaleup experience joining the
industry by company size (past 12m)
LEGEND
Increase 11-100
No change
Decrease
100+
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note:
Respondents stating 'Not able to comment' ïltered out. Source:
Founder respondents only.
&
56 In Partnership with www.thestateofeuropeantech.com

04.4 Competing For & Compensating Talent
The impetus for founders to ensure they have designed competitive incentives
mechanisms to attract talent is underpinned by the growing level of competition for talent
The impetus for founders to ensure they have designed competitive incentives mechanisms to attract talent is
in the European tech ecosystem. Founders from all regions, though at varying levels,
underpinned by the growing level of competition for talent in the European tech ecosystem. Founders from all
report increased levels of competition from both global tech giants, as well as homegrown
regions, though at varying levels, report increased levels of competition from both global tech giants, as well as
local startups that are playing in the same talent pool.
homegrown local startups that are playing in the same talent pool.
100
Founders' view on change in competition for
talent from global tech giants and local
startups, by subregion 75
s
LEGEND t
n
e
d
Tech giants, Increase n
po 50
s
e
Local startups, Increase r

f
o
Tech giants, No change
%
Local startups, No change 25
Tech giants, Decrease
Local startups, Decrease
0
Global tech giants Global tech giants Global tech giants Global tech giants Global tech giants Global tech giants Global tech giants
Central Europe DACH Eastern France & Nordics Southern UK & Ireland
& Baltics Europe Benelux Europe
Note:
Respondents stating 'Not able to comment' ïltered out. Source:
Founder respondents only
More than half of European founders are COMPETITION FOR TALENT
seeing increased competition for talent from
global tech companies of European founders have experienced
% an increase or significant increase in
54 competition for talent from global tech
companies in the past 12 months
The effect of increased competition for talent plays out in different ways, including salary
The effect of increased competition for talent plays out in different ways, including salary in�ation, greater
inflation, greater employee churn and more difficulty in filling roles. On the last point, for
employee churn and more di�culty in �lling roles. On the last point, for example, the number of job postings for
example, the number of job postings for ‘software engineer’ roles that prove hard to fill has
'software engineer' roles that prove hard to �ll has increased in every European country for which data is available,
increased in every European country for which data is available, except Denmark.
except Denmark
Share of software engineer job postings that Netherlands 46%
are hard to ïll 42%
Spain 42%
LEGEND 34%
2018 Belgium 42%
2017 34%
Ireland 41%
35%
Germany 36%
32%
Italy 35%
27%
France 33%
25%
Austria 32%
25%
Denmark 32%
35%
UK 29%
20%
Sweden 28%
26%
Portugal 27%
20%
0 10 20 30 40 50
% hard to �ll 'software engineer' job postings
Note:
Hard to �ll is de�ned as % of 'software engineer' job postings Source:
on the Indeed site(s) for more than 60 days.
&
57 In Partnership with www.thestateofeuropeantech.com

04.4 Competing For & Compensating Talent
There is talent in Europe but it’s in demand, especially when
it comes to people who have been there and done it already.
“ The biggest challenge is finding high-quality talent. There is talent
in Europe but it’s in demand, especially when it comes to people who
have been there and done it already. This is a younger ecosystem than
Silicon Valley and it’s not easy to hire people who have been able to
implement, say, groundbreaking new AI techniques that scale a B2C
solution so it can conquer the world - they are in short supply! So you
have to always look not only for people who will help you now, but also
Tugce Bulut for those who will be what you need in several months’ time.”
Streetbees
The extent to which it has become harder to fill software engineer job postings in Europe
The extent to which it has become harder to ïll software engineer job postings in Europe varies at the country
varies at the country level. The UK has, by some margin, experienced the largest overall
level. The UK has, by some margin, experienced the largest overall increase in the share of jobs that have become
increase in the share of jobs that have become hard to fill.
hard to ïll.
Change in % of software engineer job UK 42.1%
postings that are hard to ïll, 2018 versus 2017
Portugal 31.7%
LEGEND
YoY change (%) France 31.1%
Austria 28.3%
Italy 28.1%
Spain 23.7%
Belgium 22.7%
Ireland 16.6%
Germany 11.2%
Netherlands 9.4%
Sweden 6.8%
Denmark -9.6%
-20.0 -10.0 0.0 10.0 20.0 30.0 40.0
% change from 2017 to 2018 in % of software engineer job postings that are hard to ïll
Note:
% change in % of software engineer jobs that are hard to ïll in
2018 versus 2017 by country. Hard to ïll is deïned as % of Source:
'software engineer' job postings on the Indeed site(s) for more
than 60 days.
&
58 In Partnership with www.thestateofeuropeantech.com

The Next Generation
The list of companies that have the largest number of alumni that have gone on to become founders of European
tech companies is dominated by established tech companies, such as Google and Microsoft, as well as large
consulting ïrms, such as Boston Consulting Group and Accenture.
The list of companies that have the largest number Top 10 companies by number of alumni who have founded companies
of alumni who have gone on to become founders Company
of European tech companies is dominated by
Top 10 companies by number of alumni who 1 The Boston Consulting Group
have founded companies
established tech companies, such as Google and
Microsoft, as well as large consulting firms, such 2 Microsoft
as The Boston Consulting Group and Accenture. 3 Nokia
4 Accenture
5 Siemens
6 IBM
7 Google
8 Hewlett Packard
9 Yahoo!
10 McKinsey & Company
Source:
European universities are important sources of founder talent, especially the leading technical and business
universities. Notably, Harvard and Stanford also features amongst the top 20 academic institutions that have the
large number of alumni that have founded European tech companies
European universities are important sources of Top 10 institutions by number of alumni who have founded companies
founder talent, especially the leading technical University City Country
and business universities. Notably, Harvard and
Top 10 institutions by number of alumni who 1 University of Cambridge Cambridge United Kingdom
Stanford also feature amongst the top 20 academic
have founded companies
institutions with the largest number of alumni who 2 HEC Paris Paris France
have founded European tech companies. 3 University of Oxford Oxford United Kingdom
4 INSEAD Fontainebleau France
5 Imperial College London London United Kingdom
6 ESCP Europe Berlin (HQ) Germany
7 London Business School London United Kingdom
8 Stanford University Stanford United States
9 KTH Royal Institute of Technology Stockholm Sweden
10 Lund University Lund Sweden
Source:
Europe’s leading universities are important SOURCE OF TALENT
sources of entrepreneurial talent
The University of Cambridge is the top
source of founders of European venture-
#1 backed startups
&
59 In Partnership with www.thestateofeuropeantech.com

04.5 The Next Generation
The biggest reservations that hold back students when considering entrepreneurship
are the overall perceived risk, lack of funding, lack of ideas and an inability to find
a co-founder to join them on the journey. These concerns are generally felt equally
across students of both genders, except for access to funding, which is cited
significantly more frequently by female students.
Selecting any that apply, what are the main Too risky 51%
reservations you have when considering Lack of funding 63%
whether to become an entrepreneur? 40%
Lack of ideas 47%
LEGEND Inability to find a co-founder 29%
Female
Male Lack of support from universities 18%
Unattractive lifestyle 13%
Lack of support from family/friends 7%
Lack of successful role models in Europe 9%
5%
Lack of support from 7%
incubators/accelerators
0 10 20 30 40 50 60 70
% of respondents
Note:
Student respondents only Source:
Creator Fund is...building a community where potential
founders or people interested in starting a business meet
other people like them. They realise that entrepreneurship
is viable, and that there will be people to support them.
“ Entrepreneurship might feel riskier to students because they think
they can’t find the funding. Second, students see their friends taking
a job at a large corporation or going into a law firm and therefore
by comparison it feels risky to break out and start their own thing. I
think Creator Fund is changing that by building a community where
potential founders or people interested in starting a business meet
other people like them. They realise that entrepreneurship is viable,
Jamie Macfarlane and that there will be people to support them.”
Creator Fund
The structural imbalance in access to funds BARRIERS TO ENTREPRENEURSHIP FOR STUDENTS
for female entrepreneurs is evident in the
reservations that female students have when Female students cite access to funding as
considering entrepreneurship % their main reservation when considering
63 whether to become an entrepreneur,
versus just 40% of male students
&
60 In Partnership with www.thestateofeuropeantech.com

04.5 The Next Generation
If Europe’s tech ecosystem is to benefit from an increased number of its next
generations of students entering into entrepreneurship, it should explore
If Europe's tech ecosystem is to bene t from an increased number of its next generations of students entering into
ways to better educate students about tech entrepreneurship and expose
entrepreneurship, it should explore ways to better educate students about tech entrepreneurship and expose
them to relevant, practical experiences from which they can learn.
them to relevant, practical experiences from which they can learn.
Stated brie y, what could be done to better Bridging the knowledge gap 29%
support students to move straight into
entrepreneurship? Gaining practical experience in tech 16%
LEGEND Access to funding 12%
% of respondents
University-linked accelerators 12%
Access to mentors 11%
Connecting universities to the tech 10%
ecosystem
Other 9%
0 5 10 15 20 25 30
% of respondents
Note:
Student respondents only. Based on respondents that gave Source:
explicit responses only.
Each student should think about and use their Edge,
what is their competitive advantage against other
founders? Particularly if you’re technical, this is a must.
“ It’s never been easier for students to start companies both while at
university and upon graduating. That said, we still see students focus
on small markets and small problems when this needn’t be the case.
Each student should think about and use their Edge, what is their
competitive advantage against other founders? Particularly if you’re
technical, this is a must.”
Alice Bentinck
EF
A new generation of VCs is emerging in Europe to pioneer a model of running
a fund by students that is investing in students
Campus Capital First Momentum Oxford Seed Fund The Creator Fund UCL Entrepreneurs Wave Ventures
United Kingdom Ventures United Kingdom Pan-European VC Fund Finland
Germany United Kingdom
&
61 In Partnership with www.thestateofeuropeantech.com

Tech Hubs
Concentrated & Let’s look beyond London, Paris, and Berlin. European tech
is no longer driven by just a handful of cities. Upcoming
hubs span from Cardiff, in the U.K. to Novosibirsk, Russia,
Connected Communities 5,300 kilometers away. These new communities - linked by
knowledge, talent, and capital flows - are already producing
global, category winners.
ARTICLES
05.1 Growing Communities
05.2 Every City is a Tech City
05.3 Density, through Interconnected Tech Hubs
05.4 Building and internationalising away from home
05.5 New Hubs - Where Next?
In Partnership with & www.thestateofeuropeantech.com

Growing Communities
Europe has huge upside potential is it succeeds in building active tech
communities in all cities where there are large tech talent clusters.
This is because there is, perhaps unsurprisingly, a very high correlation
(r-squared of 0.914) between the strength of tech community
There is a, perhaps unsurprisingly, very high correlation (r-squared of 0.914) between the strength of tech
engagement within cities, as defined by the number of tech-related
community engagement within cities, as deïned by the number of tech-related Meetups, and the rate of
Meetups, and the rate of companies formation.
companies forming and raising funds
Number of funded companies (2013 to 9M 2,500
2018) versus number of tech-related Meetups London
(2013 to 9M 2018) per city, selected European 2,000
cities
s
e
i
n
mpa1,500
o
c
Paris
d
e
d
n
u 1,000
F
Berlin
# Stockholm
500 Amsterdam
Helsinki Dublin
Prague Warsaw
0
0 5,000 10,000 15,000 20,000 25,000 30,000
# Meetups
Source:
But not all cities with large engineering talent pools have been able
to build vibrant communities where people meet up frequently to
But not all cities that have large engineering talent pools have been able to build vibrant communities where
people are meeting up with high frequency to exchange ideas and knowledge.
exchange ideas and knowledge.
Number of tech-related Meetups per London
professional developer (2013 to 9M 2018)
versus number of professional developers
per city, selected European cities s300,000.00
r Paris
pe
o
l
e
v
e Amsterdam
d

l
a200,000.00
n
o
i
s Cologne
s
e
f
o
r
P Frankfurt am Main

# Munich Berlin
100,000.00 Brussels
Prague Hamburg Dublin
0.00
0.00 0.02 0.05 0.07 0.10 0.12 0.15
# Meetups per developer
Source:
&
63 In Partnership with www.thestateofeuropeantech.com

05.1 Growing Communities
When cities succeed in building active communities around their engineering
talent, as measured by the number of tech-related Meetup events hosted per
local developer, the data suggests that capital investment follows in larger
When cities succeed in building active communities around their engineering talent, as measured by the number
volumes. The strength of tech community development is a critical leading
of tech-related Meetup events hosted per local developer, the data suggests that capital investment follows in
indicator signposting the future potential of the European tech ecosystem.
larger volumes.
Number of tech-related Meetups per London
developer versus total capital invested (2013
to 9M 2018) per city, selected European cities 20,000.00
)
M
$
(

d
e
t Berlin
s 10,000.00 Paris
e
v
n
i

l
a Stockholm
t
pi
a Amsterdam Dublin
C Hamburg
0.00 Cologne Kiev Prague
-10,000.00
0.00 0.02 0.05 0.07 0.10 0.12 0.15
# Meetups per developer
Source:
There is huge geographic diversity amongst the Top 20 fastest-growing tech
There is huge geographic diversity amongst the Top 20 fastest-growing tech hubs in Europe, as measured by the
hubs in Europe, as measured by the annual growth in attendees to tech-related
annual growth in attendees to tech-related Meetup events in those cities. Zug in Switzerland, home to a growing
There is huge geographic diversity amongst the Top 20 fastest-growing tech hubs in Europe, as measured by the
Meetup events in those cities. Zug in Switzerland, home to a growing crypto
crypto community, ranked number one as the fastest-growing community overall.
annual growth in attendees to tech-related Meetup events in those cities. Zug in Switzerland, home to a growing
community, ranked number one as the fastest-growing community overall.
crypto community, ranked number one as the fastest-growing community overall.
Top 20 fastest-growing tech hubs in Europe Zug, Switzerland 177%
by year-on-year growth of attendees to tech- Novosibirsk, Russia 173%
Top 20 fastest-growing tech hubs in Europe Zug, Switzerland 177%
related Meetup events per city
by year-on-year growth of attendees to tech- Novosibirsk, Russia 173%
Ghent, Belgium 165%
DATASET: TOP 10 HUBS
related Meetup events per city
Ghent, Belgium 165%
The Hague, Netherlands 121%
DATASET: TOP 10 HUBS
LEGEND
Katowice, Poland 101%
The Hague, Netherlands 121%
YoY growth 2017-2018 (%)
LEGEND
Katowice, Poland 101%
YoY growth 2017-2018 (%) Dortmund, Germany 100%
Newcastle, United Kingdom 88%
Dortmund, Germany 100%
Newcastle, United Kingdom 88%
Sofia, Bulgaria 77%
Sofia, Bulgaria 77%
Essen, Germany 75%
Cardiff, United Kingdom 74%
Essen, Germany 75%
Cardiff, United Kingdom 74%
0 25 50 75 100 125 150 175 200
YoY growth (%)
0 25 50 75 100 125 150 175 200
Note: YoY growth (%)
2018 annualised based on RSVPs to end of September 2018.
Only hubs with at least 1,000 RSVPs in 2017 are included in the Source:
Note:
analysis.
2018 annualised based on RSVPs to end of September 2018.
Only hubs with at least 1,000 RSVPs in 2017 are included in the Source:
analysis.
The number of tech-related Meetup events in Europe continues to hit new highs, although the rate of year-on-year
The number of tech-related Meetup events in Europe continues to hit new highs,
growth is decelerating. In 2018, the level of activity on Meetup alone equates to around 200 events hosted every
The number of tech-related Meetup events in Europe continues to hit new highs, although the rate of year-on-year
although the rate of year-on-year growth is decelerating. In 2018, the level of activity on
single day through the year.
growth is decelerating. In 2018, the level of activity on Meetup alone equates to around 200 events hosted every
Meetup alone equates to around 200 events hosted every single day through the year.
single day through the year.
# of tech-related Meetups hosted in Europe 80,000 68
per annum 80,000 72,233
# of tech-related Meetups hosted in Europe 68
per annum 65,101 72,233 60
LEGEND 60,000 51 65,101
Events hosted 60
LEGEND 60,000 51 51,135 Y
o
YoY growth (%) Y

Events hosted ps 51,135 g
u Yr
t 40 oo
e Ywt
YoY growth (%) e 40,000 h
psM 36,226 g
r
u (
t# 40 o%
e 27 wt)
e 40,000 h
M 36,226

(
# 27 %
23,924 20 )
20,000 23,924
11
20,000 20
11
0 0
2014 2015 2016 2017 2018
0 0
2014 2015 2016 2017 2018
Note: Source:
2018 annualised based on data to end of September 2018
Note: Source:
2018 annualised based on data to end of September 2018
&
64 In Partnership with www.thestateofeuropeantech.com

05.1 Growing Communities
“ We’ve recently done deals with amazing companies in cities as
diverse as Marbella to Bristol. Gone are the days where growth
Today, if you build a capital is limited to the Valley, a fact that Silicon Valley itself now
acknowledges: with the majority of VCs based there now planning to
business that’s obsessed invest internationally. Today, if you build a business that’s obsessed
with the customer, the with the customer, the capital will come to you.”
capital will come to you. Simon Cook
Draper Esprit
The density of these tech-related Meetup communities relative to the
The density of these tech-related Meetup communities relative to the overall population of individual countries
overall population of individual countries varies significantly across
The density of these tech-related Meetup communities relative to the overall population of individual countries
varies signiïcantly across Europe, led by Ireland, Luxembourg, the Netherlands and Switzerland.
Europe, led by Ireland, Luxembourg, the Netherlands and Switzerland.
varies signiïcantly across Europe, led by Ireland, Luxembourg, the Netherlands and Switzerland.
# of active members of tech-related Meetup
# of active members of tech-related Meetup
groups per 1,000 inhabitants by country
groups per 1,000 inhabitants by country
LEGEND
LEGEND upto 7.0
upto 7.0 5.0 to 6.0
5.0 to 6.0 4.0 to 5.0
3.0 to 4.0
4.0 to 5.0 2.0 to 3.0
3.0 to 4.0 1.0 to 2.0
2.0 to 3.0 upto 1.0
1.0 to 2.0
upto 1.0
Source:
Source:
&
65 In Partnership with www.thestateofeuropeantech.com

05.1 Growing Communities
In Europe’s largest and most mature tech communities, there are signs of a slowdown in
In Europe's largest and most mature tech communities, there are signs of a slowdown in the level of participation
the level of participation around tech-related Meetup events, but outside those leading
In Europe's largest and most mature tech communities, there are signs of a slowdown in the level of participation
around tech-related Meetup events, but outside those leading hubs there continues to be rapid growth in
In Europe's largest and most mature tech communities, there are signs of a slowdown in the level of participation
hubs there continues to be rapid growth in engagement, including in cities such as
around tech-related Meetup events, but outside those leading hubs there continues to be rapid growth in
engagement, including in cities such as Hamburg, Zurich, Manchester or Wroclaw.
around tech-related Meetup events, but outside those leading hubs there continues to be rapid growth in
Hamburg, Zurich, Manchester or Wroclaw.
engagement, including in cities such as Hamburg, Zurich, Manchester or Wroclaw.
engagement, including in cities such as Hamburg, Zurich, Manchester or Wroclaw.
Top 20 hubs by level of tech Meetup activity
in 2018, ranked by number of Meetup DATASET: TOP 5 HUBS 315,839 315,497
Top 20 hubs by level of tech Meetup activity 292,792
Top 20 hubs by level of tech Meetup activity 315,839 315,497
attendees 300,000
in 2018, ranked by number of Meetup 315,839 315,497
in 2018, ranked by number of Meetup 292,792
attendees 300,000 292,792
attendees 300,000
s 209,386
LEGEND e
e
sd
en 209,386
LEGEND e200,000
London s
et
t 209,386
LEGEND de
a
ne 160,608
d
London ep 200,000 153,528
Berlin tn 150,866
tu
t
London ae200,000
t
e 136,537
t 160,608
p e
Berlin a 150,866 153,528
Paris uM 160,608
t
Berlin ep 150,866 153,528
u
# 136,537
et 105,118
Paris e 136,537
Amsterdam M
Paris e 84,647
#M 83,239 81,746
100,000 105,118
Amsterdam #
Munich 105,118
Amsterdam 61,313 63,857 84,647
100,000 83,239 81,746 84,647
Munich 100,000 83,239 41,471 81,746
35,714 37,333 63,857
Munich 61,313 63,857
11,492 61,313 41,471
35,714 37,333 41,471
In Europe's largest and most mature tech communities, there are signs of a slowdown in the level of participation
35,714 37,333
11,492
In Europe's largest and most mature tech communities, there are signs of a slowdown in the level of participation
0
around tech-related Meetup events, but outside those leading hubs there continues to be rapid growth in
11,492
2014 2015 2016 2017 2018
0
around tech-related Meetup events, but outside those leading hubs there continues to be rapid growth in
engagement, including in cities such as Hamburg, Zurich, Manchester or Wroclaw.
0 2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
engagement, including in cities such as Hamburg, Zurich, Manchester or Wroclaw.
Note: Source:
LEGEND DATASET: HUBS 6-10
2018 annualised based on RSVPs to end of September 2018 80,000 74,792
Note: Source:
LEGEND Source:
Note: 80,000
Madrid 74,792
2018 annualised based on RSVPs to end of September 2018
2018 annualised based on RSVPs to end of September 2018
Madrid 65,332
Warsaw
Warsaw 65,332 59,895
Barcelona 58,559
Barcelona 60,000 58,559 59,895
Istanbul s 60,000 50,929 52,017
e
e 52,017
Istanbul sd 50,929 46,445
Dublin en
ee
dt 46,445
Dublin nt
ea 37,206
tp
tu40,000
at
p e 37,206
ue40,000
tM
e
e# 25,852
M
22,174
# 25,852
16,605 18,516 22,174
20,000 18,516
20,000 16,605
8,880 7,604
e tech communities, there are signs of a slowdown in the level of participation
8,880 7,604
2,207
, but outside those leading hubs there continues to be rapid growth in
0 2,207
2014 2015 2016 2017 2018
h as Hamburg, Zurich, Manchester or Wroclaw.
e tech communities, there are signs of a slowdown in the level of participation
0
2014 2015 2016 2017 2018
, but outside those leading hubs there continues to be rapid growth in
50,000
h as Hamburg, Zurich, Manchester or Wroclaw.
Note: Source: 43,959
LEGEND DATASET: HUBS 11-15
2018 annualised based on RSVPs to end of September 2018 Source:
Note: 40,962
Hamburg 50,000
2018 annualised based on RSVPs to end of September 2018 40,000
36,068 36,224 36,749
Zurich 43,959
LEGEND
Stockholm 40,962 32,064
Hamburg s 31,746
40,000
e 28,523 36,749
Oslo e 36,068 36,224
Zurich d30,000 27,539
n
e
Manchester t 24,424 32,064
Stockholm t 31,746
s a 22,217
e p
u 28,523
Oslo e t 19,705 20,575
d30,000 27,539
n e 18,805
e e20,000
t M 24,424
Manchester t 15,922
a # 22,217 13,875
p
u 12,580 20,575
t 11,249 19,705
e 18,805
e20,000
M
8,094 15,922
# 10,000 6,774 13,875
12,580 11,249
3,174
8,094
In Europe's largest and most mature tech communities, there are signs of a slowdown in the level of participation
10,000 6,774
0
around tech-related Meetup events, but outside those leading hubs there continues to be rapid growth in
2014 2015 2016 2017 2018
3,174
In Europe's largest and most mature tech communities, there are signs of a slowdown in the level of participation
engagement, including in cities such as Hamburg, Zurich, Manchester or Wroclaw.
around tech-related Meetup events, but outside those leading hubs there continues to be rapid growth in
0
Source: 2014 2015 2016 2017 2018
engagement, including in cities such as Hamburg, Zurich, Manchester or Wroclaw.
Note:
2018 annualised based on RSVPs to end of September 2018 40,000 38,018
LEGEND HUBS 16-20
Note: Source: 33,680
Budapest 40,000 38,018
2018 annualised based on RSVPs to end of September 2018
LEGEND
Wroclaw 28,869
Budapest 30,000 33,680
Vienna s
e
e
Wroclaw d 23,408 28,869
Copenhagen n 22,676 23,112
e 30,000
t
Vienna st
Frankfurt ea 19,062
ep 18,607
du20,000 23,408
Copenhagen nt 16,829 22,676 23,112
ee
te
tM
Frankfurt a 19,062 14,308
p # 18,607
u 20,000
t 11,302
e 16,829
e 9,131
M
10,000 7,889 14,308
#
4,216 11,302
3,746
9,131 7,889
10,000 1,445
0 4,216 3,746
2014 2015 2016 2017 2018
1,445
0
2014 2015 2016 2017 2018
Note: Source:
2018 annualised based on RSVPs to end of September 2018
Note: Source:
2018 annualised based on RSVPs to end of September 2018
&
66 In Partnership with www.thestateofeuropeantech.com

05.2 Every City is a Tech City
Talent is necessary, but talent alone is not TECH COMMUNITIES AND COMPANY FORMATION
enough. Cities need to engage that talent in active
communities to drive greater levels of company The correlation between the strength of
formation tech community engagement within cities
0.914and the rate of company formation and
funding has an r-squared of 0.914.
&
67 In Partnership with www.thestateofeuropeantech.com
Photo: Sami Heiskanen/ Juuso Hmlinen

Every City is a Tech City
Data on the size of tech-related Meetup communities per city is useful in helping to identify a new generation of
hubs that are emerging across the region and are achieving a meaningful scale in terms of the number of active
participants in local tech-related Meetup events
Data on the size of tech-related Meetup Top 10 most popular tech-related Meetup event topics in Europe in 2018
communities per city is useful in helping to identify Country 2016 2017 2018 YoY 2017-2018 (%)
European cities surpassing 1,000 members of
a new generation of hubs that are emerging across Antalya Turkey 97 209 1,715 721
tech-related Meetup groups for the ïrst time
the region and are achieving a meaningful scale in Cologne Germany 83 407 1,061 161
in 2018
terms of the number of active participants in local Minsk Belarus 580 895 1,259 41
tech-related Meetup events Ghent Belgium 329 883 1,212 37
Zug Switzerland 431 852 1,159 36
Mannheim Germany 586 881 1,190 35
Essen Germany 516 869 1,075 24
Rzeszów Poland 858 946 1,145 21
Münster Germany 440 991 1,184 19
Freiburg Germany 569 958 1,031 8
The signs that every city is becoming - or will eventually become - a tech city in Europe continue to strengthen.
There are now more 180+ hubs across Europe that host tech-related Meetup events with high levels of regularity
Arnhem Netherlands 691 989 1,027 4
throughout the year.
Source:
# European cities with >50 tech-related 200
The signs that every city in Europe is becoming - or will eventually become - a tech city 182
Meetup events per year
The signs that every city is becoming - or will eventually become - a tech city in Europe continue to strengthen.
continue to strengthen. There are now 180+ hubs across Europe that host tech-related 172
There are now more 180+ hubs across Europe that host tech-related Meetup events with high levels of regularity
LEGEND
Meetup events with high levels of regularity throughout the year.
throughout the year. 150 141
# European cities s
e
i
t
i
c 113

n 200
# European cities with >50 tech-related a
pe100
o 182
Meetup events per year r
u 172
E
74
#
LEGEND 150
50 48 141
# European cities s
e
i
t
i 25
c 113

n
a
pe100
o
r
u 0
E
2012 2013 2014 2015 2016 2017 2018
# 74
50 48
Note: Source:
2018 annualised based on data to end of September 2018 25
The extent to which the growth of the European tech ecosystem to now has been driven by just a handful of cities
0
2012 2013 2014 2015 2016 2017 2018
is evident by comparing the share of capital invested over a �ve-year period in those leading cities versus their
relative share of professional developer talent. For example, 76% of all capital invested into Europe since 2013 has
Source:
�owed to just 10 hubs representing just 30% of the talent pool.
Note:
2018 annualised based on data to end of September 2018
It’s clear that Europe’s tech ecosystem to date has been driven by just a handful of cities.
Share of capital invested (2013 to 9M 2018) 80
The extent to which the growth of the European tech ecosystem to now has been driven by just a handful of cities
The share of capital invested over a five-year period in leading cities versus their relative 76%
versus share of professional developer talent
is evident by comparing the share of capital invested over a �ve-year period in those leading cities versus their
pool for Top 3, 5 & 10 hubs
share of professional developer talent is telling. For example, 76% of all capital invested
relative share of professional developer talent. For example, 76% of all capital invested into Europe since 2013 has
62%
into Europe since 2013 has flowed to just 10 hubs representing just 30% of the talent pool.
60
�owed to just 10 hubs representing just 30% of the talent pool.
LEGEND l
a
t 52%
o
% capital invested t

n
% professional developers a
pe
o
Share of capital invested (2013 to 9M 2018) r 80
u 40 76%
E

versus share of professional developer talent f
o
30%
pool for Top 3, 5 & 10 hubs %
62% 20%
60
LEGEND l 20
a 15%
t 52%
o
% capital invested t

n
% professional developers a
pe
o
r
u 40
E 0

f Top 3 hubs Top 5 hubs Top 10 hubs
o
30%
Note: %
Top 3 hubs based on total capital invested 2013-3Q2018 are Source: 20%
London, Berlin, and Paris. Top 5 adds Stockholm and 20
Barcelona. Top 10 adds Cambridge, Dublin, Amsterdam, Madrid, 15%
and Moscow.
0
Top 3 hubs Top 5 hubs Top 10 hubs
Note:
Top 3 hubs based on total capital invested 2013-3Q2018 are Source:
London, Berlin, and Paris. Top 5 adds Stockholm and
Barcelona. Top 10 adds Cambridge, Dublin, Amsterdam, Madrid,
and Moscow. &
68 In Partnership with www.thestateofeuropeantech.com

05.2 Every City is a Tech City
It’s interesting to compare the ‘bang for buck’ different cities have achieved by measuring
across them the level of capital investment per local professional developer. Such
It's interesting to compare the 'bang for buck' that different cities have achieved by measuring the level of capital
comparison shows Berlin stands apart as a real outlier, having attracted a disproportionate
investment per local professional developer in those cities. In doing this, Berlin stands apart as a real outlier having
level of investment relative to its local developer pool.
attracted a disproportionate level of investment relative to its local developer pool.
Top 10 European cities for capital invested ($) 100,000 $97,404
per professional developer
LEGEND ) 75,000
$
(
$66,337
Capital invested per developer ($) d $63,019
e
t
s
European average ($) e
v
n
i

l 50,000
a $45,000
t
pi
a $36,138
C $31,255
25,000 $24,432
$13,906 $13,906 $13,906 $13,906 $13,906 $13,906 $19,106 $19,096
$12,224
0
n n n a s g d i n
i m i i r i k
l o l l n r r n e
r d o b o a u d i g
e n h u l P b a s a
B o k D e l h
c c m M e n
L o r a H e
t a H p
S B o
C
Note:
Investment amounts are based on capital invested in the city in Source:
aggregate between 2012 and September 2018 divided by the
total number of professional developers (2018) in the city.
The emergence of global hits like UIPath from Bucharest,
Supercell from Helsinki, Farfetch from Lisbon -- all from
far beyond the unicorn-factories of London, Stockholm
and Berlin - marks a new era for Europe.
“ The big change is that there are now plenty of examples of how
it’s possible to create world-changing companies from all over
Europe. The emergence of global hits like UIPath from Bucharest,
Supercell from Helsinki, Farfetch from Lisbon -- all from far beyond
the unicorn-factories of London, Stockholm and Berlin - marks a
new era for Europe. However, so far founders from non-hub cities
have been inadequately served by investors who tend to focus on
Ophelia Brown the traditional geographies and are not equipped to offer the same
Blossom Capital support when a startup originates from a small town in, for example,
Germany or Estonia.”
Europe’s tech community outside its Top TECH HUBS EVERYWHERE
20 hubs continues to flourish
of all tech-related Meetups in Europe that
% now happen outside of the Top 20 hubs in
53 the region, up from 42% in 2014.
Berlin’s relatively small professional developer CAPITAL BANG PER DEVELOPER BUCK
community has attracted a disproportionate
amount of capital investment compared to any other
European city, including London $97,404
capital invested since 2013 per developer in Berlin,
the highest concentration of capital invested per
developer of any European city
&
69 In Partnership with www.thestateofeuropeantech.com

Density, through
Interconnected Tech Hubs
The European ecosystem benefits from interconnectivity in a number of ways
The European ecosystem bene ts from interconnectivity in a number of ways that help drive the ow of
that help drive the flow of knowledge, talent, and capital. Exchanges amongst
The European ecosystem bene ts from interconnectivity in a number of ways that help drive the ow of
knowledge, talent and capital. The ow of useful ideas and knowledge throughout the European tech ecosystem is
counterparts, whether founders or investors, enables the flow of useful ideas
knowledge, talent and capital. The ow of useful ideas and knowledge throughout the European tech ecosystem is
enabled by exchanges between counterparts, whether founders or investors.
and knowledge throughout the European tech ecosystem.
enabled by exchanges between counterparts, whether founders or investors.
The European ecosystem bene ts from interconnectivity in a number of ways that help drive the ow of
knowledge, talent and capital. The ow of useful ideas and knowledge throughout the European tech ecosystem is
I have exchanged useful ideas and knowledge
enabled by exchanges between counterparts, whether founders or investors.
I have exchanged useful ideas and knowledge
with my counterparts from other hubs Founder or startup/
DATASET: OCCUPATION 67% 33%
with my counterparts from other hubs scale-up employee
DATASET: OCCUPATION Founder or startup/ 67% 33%
scale-up employee
DATASET: OCCUPATION
I have exchanged useful ideas and knowledge
LEGEND
with my counterparts from other hubs Founder or startup/
LEGEND scale-up employee 67% 33%
Yes
DATASET: OCCUPATION
Yes
No Investor 91% 9%
No Investor 91% 9%
LEGEND
Yes
No Investor 91% 9%
Other 69% 31%
Other 69% 31%
Other 0 20 69% 40 60 80 31% 100
0 20 40 60 80 100
% of respondents
% of respondents
Note:
In subregions, only founders' and startup/scale-up employees' 0 20 40 60 80 100
Note: Source:
responses included. In company sizes, only founders'
In subregions, only founders' and startup/scale-up employees'
The European ecosystem bene�ts from interconnectivity in a number of ways that help drive the �ow of
Source: % of respondents
responses.
responses included. In company sizes, only founders'
knowledge, talent and capital. The �ow of useful ideas and knowledge throughout the European tech ecosystem is
responses.
Note:
In subregions, only founders' and startup/scale-up employees'
enabled by exchanges between counterparts, whether founders or investors.
Source:
responses included. In company sizes, only founders' DATASET: COMPANY SIZE BY # OF EMPLOYEES
responses.
I have exchanged useful ideas and knowledge
with my counterparts from other hubs <=10 74% 26%
DATASET: COMPANY SIZE BY # OF EMPLOYEES
LEGEND
Yes
No 11-100 67% 33%
100+ 77% 23%
0 10 20 30 40 50 60 70 80 90 100
The European ecosystem bene ts from interconnectivity in a number of ways that help drive the ow of
The European ecosystem bene�ts from interconnectivity in a number of ways that help drive the �ow of
% of respondents
knowledge, talent and capital. The ow of useful ideas and knowledge throughout the European tech ecosystem is
knowledge, talent and capital. The �ow of useful ideas and knowledge throughout the European tech ecosystem is
Note:
enabled by exchanges between counterparts, whether founders or investors.
enabled by exchanges between counterparts, whether founders or investors.
In subregions, only founders' and startup/scale-up employees'
Source:
responses included. In company sizes, only founders' DATASET: SUBREGION
responses.
I have exchanged useful ideas and knowledge Central Europe & Baltics 22%
I have exchanged useful ideas and knowledge 78%
with my counterparts from other hubs Founder or startup/
with my counterparts from other hubs scale-up employee 67% 33%
DATASET: OCCUPATION DACH 73% 27%
DATASET: SUBREGION
LEGEND
LEGEND Eastern Europe 79% 21%
Yes
Yes
No Investor 91% 9%
No France & Benelux 67% 33%
Nordics 64% 36%
Southern Europe 68% 32%
Other 69% 31%
UK & Ireland 65% 35%
0 20 40 60 80 100
0 20 40 60 80 100
% of respondents
% of respondents
Note:
Note:
In subregions, only founders' and startup/scale-up employees'
In subregions, only founders' and startup/scale-up employees' Source:
responses included. In company sizes, only founders' Source:
responses included. In company sizes, only founders'
responses.
responses.
&
70 In Partnership with www.thestateofeuropeantech.com

05.3 Density, through Interconnected Tech Hubs
The combination of an increase in competition for talent in established
European tech hubs together with the increased attractiveness of a new
generation of tech hubs across the region is helping to drive an increase in
The combination of an increase in competition for talent in established European tech hubs together with the
founders’ interest in opening satellite offices to tap new talent pools. 80%
increased attactiveness of a new generation of tech hubs across the region is helping to drive an increase in
of founders of companies with more than 100 employees state an increased
founders' interest in opening satellite o�ces to tap new talent pools. 80% of founders of companies with more
interest in pursuing this ‘distributed office’ strategy.
than 100 employees state an increased interest in pursuing this distributed o�ce strategy
Distribution of change in founder interest in
opening satellite oíces to tap new talent <=10
pools by company size (past 12m)
LEGEND
Increase
No change 11-100
Decrease
100+
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note:
Respondents stating 'Not able to comment' �ltered out. Source:
Founder respondents only.
The principle of scaling a European tech company by building in a distributed
way across multiple offices in different cities is firmly embedded. By the time
The trend of scaling European tech companies by building in a distributed way across multiple o�ces in different
European startups have hit 100 employees or more, more than half of them
cities is �rmly embedded. By the time European startups have hit 100 employees or more, more than half of them
have established a satellite office or team in another hub.
have established a satellite o�ce/team in another hub.
My company has established satellite
oíces/teams in other hubs <=10 21% 79%
LEGEND
Yes
No
11-100 33% 67%
100+ 58% 42%
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note: Source:
Founder respondents only.
&
71 In Partnership with www.thestateofeuropeantech.com

05.3 Density, through Interconnected Tech Hubs
In addition to opening offices in new hubs to tap alternative talent
pools, a large number of European founders recruit high-performing
In addition to opening o�ces in new hubs to tap alternative talent pools, a large number of European founders
talent from other hubs, though the likelihood of doing so increases
recruit high-performing talent from other hubs, though the likelihood of doing so increases signi�cantly as the size
significantly as the size of the company increases.
of the company increases.
I have recruited high-performing talent from
other hubs, by company size by # of <=10 19% 81%
employees
LEGEND
Yes
No 11-100 35% 65%
100+ 63% 37%
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note: Source:
Founder respondents only.
Europe’s tech ecosystem also benefits from an interconnected flow
of capital, driven by connections between investors and founders
across borders. Europe’s VCs, in particular, are highly connected and
Europe's tech ecosystem also bene ts from an interconnected ow of capital, driven by connections between
EEuuroroppee's t's teecchh e eccoossyysstetemm a alsolso b beennee tsts f froromm a ann i inntetercrcoonnnneecctetedd ooww o of cf caappitiatal,l d, drirviveenn b byy c coonnnneecctitoionnss b beetwtweeeenn
investors and founders across borders. Europe's VCs, in particular, are highly connected and have almost
have almost unanimously built relationships and benefit from positive
ininvveesstotors ars anndd f foouunnddeers ars accrorosss bs boordrdeersrs. E. Euuroroppee's's V VCCss, i, inn p paartritcicuulalar,r a, arere h higighhlyly c coonnnneecctetedd a anndd h haavvee a almlmoosstt
unanimously built relationships and bene t from positive interactions with fellow investors from other hubs across
interactions with fellow investors from other hubs across the region – a
uunnaannimimoouuslysly b buuilitl rt reelalatitoionnshishippss a anndd b beennee t ft froromm p poossitiitvivee i innteteraracctitoionnss w witihth f feellloloww i innvveesstotorsrs f froromm o oththeer hr huubbss a accrorossss
the region.
unique advantage given the diversity of the European market as a whole.
ththee r reeggioionn. .
I have interacted positively with investors OCCUPATION
from other hubs Founder or
I hI havaev ien itnetrearcatcetd ped poosistiitvievleyl wy witiht ihn ivnevsetsotorsrs
frforomm o othtehre hr hubsubs startup/scale-up 56% 44%
employee
DATASET: OCCUPATION FoFuonudnedre orr or
stsatraturtpu/ps/csacleal-eu-pup 565%6% 444%4%
employee
DADTAATASSEET:T :O OCCCCUUPAPTAITOIONN employee
LEGEND
Yes Investor 95% 5%
LELEGGEENNDD
InIvnevsetsotror 959%5% 5%
No 5%
YeYses
0 20 40 60 80 100
Europe's tech ecosystem also bene ts from an interconnected ow of capital, driven by connections between
NoNo
% of respondents
00 2020 4040 6060 8080 101000
investors and founders across borders. Europe's VCs, in particular, are highly connected and have almost
%% of o rfe rsepospondnednetnsts
unanimously built relationships and bene t from positive interactions with fellow investors from other hubs across
the region. Source:
Europe's tech ecosystem also bene ts from an interconnected ow of capital, driven by connections between
Europe's tech ecosystem also bene ts from an interconnected ow of capital, driven by connections between
COMPANY SIZE BY # OF EMPLOYEES
SoSuorucrec:e:
investors and founders across borders. Europe's VCs, in particular, are highly connected and have almost
investors and founders across borders. Europe's VCs, in particular, are highly connected and have almost
unanimously built relationships and bene t from positive interactions with fellow investors from other hubs across
unanimously built relationships and bene t from positive interactions with fellow investors from other hubs across
the region. <=10 59% 41%
the region.
Note:
In subregions, only founders' and startup/scale-up employees'
I have interacted positively with investors
NoNotet:e:
responses included. In company sizes, only founders' 11-100
InI snu sburbergeigoinosn, so,n olny lfyo fuonudnedresr' sa'n adn sdt satraturtp/up/scsacleal-eu-p uep mpemplolyoeyeese' s' 72% 28%
responses.
from other hubs Founder or
rerseposponsnesse isn icnlculduedde.d In. I cno cmpaompanyn syi zseizse, so,n olny lfyo fuonudnedresr' s' startup/scale-up
<=10 59% 41%
rerseposponsnesse.s. employee 56% 44%
DATASET: OCCUPATION
LEGEND 100+ 79% 21%
Yes Investor 95% 5%
Note: 11-100 72% 28%
In subregions, only founders' and startup/scale-up employees'
No 0 10 20 30 40 50 60 70 80 90 100
responses included. In company sizes, only founders' 0 20 40 60 80 100
responses. % of respondents
% of respondents
100+ 79% 21%
Note:
In subregions, only founders' and startup/scale-up employees' Source:
responses included. In company sizes, only founders' Source: 0 10 20 30 40 50 60 70 80 90 100
responses. % of respondents
Source:
Note:
In subregions, only founders' and startup/scale-up employees'
responses included. In company sizes, only founders'
responses.
&
72 In Partnership with www.thestateofeuropeantech.com

05.3 Density, through Interconnected Tech Hubs Photo: Sami Valikangas
Europe’s tech ecosystem also benefits from a valuable series of international
events that help to interconnect hubs via network flow. The overwhelming
Europe's tech ecosystem also bene�ts from a valuable series of international events that help to interconnect
majority of investors and a clear majority of founders and startup employees
hubs via network �ow. The overwhelming majority of investors, and a clear majority of founders and startup
have attended events in other hubs that they have found useful.
employees, have attended events in other hubs that have been useful to them.
I have attended useful events in other hubs
Founder or startup/scale-up employee 67% 34%
LEGEND
Yes
No
Investor 85% 15%
Other 67% 33%
0 20 40 60 80 100
% of respondents
Note:
In subregions, only founders' and startup/scale-up employees' Source:
responses included. In company sizes, only founders'.
The continued development and growth of the
numerous tech-hubs across Europe will be a critical
factor in incubating the next big tech successes.
“ The continued development and growth of the numerous tech-hubs
across Europe will be a critical factor in incubating the next big tech
successes. Europe boasts some of the world’s most progressive
universities and research institutions, contributing directly to the
growing and diverse pool of ideas and talent across London, Paris,
Berlin, Stockholm, as well as other European hubs. Governments and
policy makers across the region are also increasingly responsive to
Munish Varma the technology-led agenda through forward-thinking regulation and
SoftBank Vision Fund investment in next-generation digital infrastructure. These factors
combine to provide the foundation for partnerships between bold
entrepreneurs and bold investors in building the businesses that
fundamentally disrupt the status quo.”
&
73 In Partnership with www.thestateofeuropeantech.com

Building and internationalising
away from home
The overwhelming majority of European founders are happy in Europe.
It's often said that European founders 'all want to move to the Valley'. This is not what the data shows. Only 6% of
Just 6% would choose to found and build their company in Silicon Valley
European founders would choose to found and build their company in Silicon Valley if given the chance to start
if given the chance to start over again.
over again.
If you were to start over, where would you I would stay where we are now 63.9%
choose to found and build your company?
A different European city 19.3%
LEGEND
% of founders
Silicon Valley/Bay Area 6.2%
Somewhere else (e.g. Asia) 3.7%
Other (please specify) 3.6%
A different US city (not Silicon Valley/Bay 3.0%
Area)
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
% of respondents
Note: Source:
Founder respondents only
Given that 28% of European founders are building their companies
outside of their home countries, it’s clear that founders will move if
Given that 28% of European founders are building their companies outside of their home country, it's clear that
necessary to find the right location to build their company. But this is
founders will move if necessary to ïnd the right location from which to build their company. But this is not
not necessarily their first choice. The majority of founders choose to
necessarily their ïrst choice. The majority of founders choose to build from exactly where they are or where they
build exactly where they are or where they have an established network.
have an established network.
What was the most important consideration I was already living here 46.1%
for you when choosing where to locate
your company when you founded it? Strength of my personal network here 14.2%
LEGEND Access to relevant talent 7.2%
% of counders
Strength of the local tech community 5.6%
Access to customers 5.0%
Friendly business environment 4.9%
Access to investors (angels, VCs, etc) 4.5%
Cost of talent 3.6%
Other 2.7%
Access to knowledge 2.3%
Friendly regulatory environment 2.2%
Cost of office space 1.1%
0.0 10.0 20.0 30.0 40.0 50.0
% of respondents
Note: Source:
Founder respondents only
&
74 In Partnership with www.thestateofeuropeantech.com

05.4 Building and internationalising away from home
European teams entering Y Combinator are voting with their feet on where to build their
business; YC graduates who have returned to Europe have raised 5x more in the past two
European teams entering Y Combinator are voting with their feet on where to build their business; YC graduates
years than those who moved their startups to the US (the difference in absolute amounts
that have returned to Europe have raised 5x more in the past two years than those that moved their startup to the
across years is simply a function of the relative age of the different cohorts).
US
)
M
$
(

r $170.6M
Funds raised by Y Combinator cohorts, a
e
y

Europe vs US-based ($M) t
r
o
h
o
c 150.0

C
LEGEND Y

r
pe
HQ in Europe
s $102.3M
e
i
HQ in US n 100.0
mpa
o $71.6M
c
$66.9M
y
b

d
e 50.0
s
i $36.6M
a $32.3M
r
$25.6M
s
d
n $8.8M
u $5.9M
f $5.0M

l
a
t 0.0
o
T 2014 2015 2016 2017 2018
Source: Blossom
Blossom Capital
Capital
European founders going through Y Combinator are FOUNDER RELOCATION TRENDS
voting with their feet and choosing to return to Europe
European founders that have graduated
from Y Combinator and returned to Europe
5x have raised 5x more than those that moved
their startup to the U.S.
Blossom Capital
European graduates of YC that elect to build from Europe are attracting investment from the region's leading
investors, as well as from top US-based funds.
European graduates of YC that elect to build Selected examples of YC graduates that are building from Europe
from Europe are attracting investment from the YC Cohort HQ Location Selected Investors
Selected examples of YC graduates that are Duffel Summer 2018 London Blossom, Index
region’s leading investors, as well as from top
U.S.-based funds. building from Europe
Let's do This Winter 2018 London Shasta
Quit Genius Winter 2018 London Village Global
Siite Winter 2018 Paris eFounders, Index
Station Winter 2018 Paris Accel, eFounders
Veriff Winter 2018 Tallinn Mosaic, ACE & Company
Fat Lama Summer 2017 London Atomico, Blossom, Greylock
MessageBird Summer 2016 Amsterdam Accel, Atomico
Blossom Capital
Source: Blossom
Capital
Around two-thirds of Europe's scale-ups have established an
Around two-thirds of Europe’s scale-ups have established an international office
international oíce.
Share of leading VC-backed European tech
companies with an international oíce 61%
60
footprint
LEGEND
s
e
International oíce location i 39%
n 40
No international oíce location mpa
o
c

f
o

%
20
0
Companies
Note:
Based on a sample 120 European tech companies that have
reached $B+ milestone and/or raised more than $50M in Source:
venture capital.
75 In Partnership with & www.thestateofeuropeantech.com

05.4 Building and internationalising away from home
The US is the #1 destination for European tech scale-
The US is the #1 destination for European tech scale-ups
ups that set up an international office
that set up an international oíce.
Top 10 most popular countries for US 59%
international oíce locations of European UK 53%
tech scale-ups that have internationalised
their oíce footprint Germany 31%
Australia 20%
LEGEND
% of internationalised companies with oíce in Netherlands 18%
country
Spain 18%
France 16%
Italy 14%
Poland 14%
0 10 20 30 40 50 60
% of internationalised companies with oíce in country
Note:
Based on a sample 120 European tech companies that have
reached $B+ milestone and/or raised more than $50M in Source:
venture capital.
Although London ranked as the most cited destination city amongst all respondents, there
are clear differences in the top city preferences when analysing the results based on the
sub-region of origin of survey participants. On that basis, it’s apparent that London is only
Although London ranked as the most cited destination city amongst all respondents, there are clear differences in
Although London ranked as the most cited destination city amongst all respondents, there are clear differences in
the number one city for respondents from UK & Ireland and from the Mediterranean region.
the top city preferences when analysing the results based on the sub-region of origin of survey participants. On
the top city preferences when analysing the results based on the sub-region of origin of survey participants. On
that basis, it's apparent that London is only the number city for respondents from UK & Ireland and from the
that basis, it's apparent that London is only the number city for respondents from UK & Ireland and from the
Mediterranean region. DATASET: BENELUX Mediterranean region. DATASET: WESTERN EUROPE
Top 5 hubs where
founders would
Top 5 hubs where founders would start a Amsterdam Top 5 hubs where founders would start a 48 Berlin 42
company tomorrow, by region company tomorrow, by region
start a company
DATASET: BENELUX DATASET: WESTERN EUROPE
tomorrow, by
London 33 Paris 37
LEGEND region LEGEND
Share of founders (%) Share of founders (%)
Berlin 30 London 23
Eindhoven 18 Cologne 14
Paris 18 Barcelona 13
0 10 20 30 40 50 0 5 10 15 20 25 30 35 40 45
Although London ranked as the most cited destination city amongst all respondents, there are clear differences in
Although London ranked as the most cited destination city amongst all respondents, there are clear differences in
Share of founders (%) Share of founders (%)
the top city preferences when analysing the results based on the sub-region of origin of survey participants. On
the top city preferences when analysing the results based on the sub-region of origin of survey participants. On
that basis, it's apparent that London is only the number city for respondents from UK & Ireland and from the
Note: that basis, it's apparent that London is only the number city for respondents from UK & Ireland and from the
Note:
Founders could allocate 3 votes. Percentages indicate how Source: Founders could allocate 3 votes. Percentages indicate how Source:
Mediterranean region. Mediterranean region.
many founders would like to startup in each respective city. DATASET: NORDICS & BALTICS many founders would like to startup in each respective city. DATASET: CENTRAL & EASTERN EUROPE
Top 5 hubs where founders would start a Stockholm Top 5 hubs where founders would start a 42 Berlin 54
company tomorrow, by region company tomorrow, by region
DATASET: NORDICS & BALTICS DATASET: CENTRAL EASTERN EUROPE
Berlin 40 London 42
LEGEND LEGEND
Share of founders (%) Share of founders (%)
London 32 Amsterdam 14
Copenhagen 26 Lisbon 13
Amsterdam 15 Warsaw 12
0 5 10 15 20 25 30 35 40 45 0 10 20 30 40 50 60
Although London ranked as the most cited destination city amongst all respondents, there are clear differences in
Although London ranked as the most cited destination city amongst all respondents, there are clear differences in
Share of founders (%) Share of founders (%)
the top city preferences when analysing the results based on the sub-region of origin of survey participants. On
the top city preferences when analysing the results based on the sub-region of origin of survey participants. On
that basis, it's apparent that London is only the number city for respondents from UK & Ireland and from the
Note: that basis, it's apparent that London is only the number city for respondents from UK & Ireland and from the
Note:
Founders could allocate 3 votes. Percentages indicate how Source: Founders could allocate 3 votes. Percentages indicate how Source:
Mediterranean region. DATASET: MEDITERRANEAN Mediterranean region. DATASET: UK & IRELAND
many founders would like to startup in each respective city. many founders would like to startup in each respective city.
Top 5 hubs where founders would start a London Top 5 hubs where founders would start a 47 London 71
company tomorrow, by region company tomorrow, by region
DATASET: MEDITERRANEAN DATASET: UK & IRELAND
Barcelona 44 Berlin 34
LEGEND LEGEND
Share of founders (%) Share of founders (%)
Berlin 28 Paris 28
Milan 20 Barcelona 21
Lisbon 15 Dublin 16
0 10 20 30 40 50 0 10 20 30 40 50 60 70 80
Share of founders (%) Share of founders (%)
Note: Note:
Founders could allocate 3 votes. Percentages indicate how Source: Founders could allocate 3 votes. Percentages indicate how Source:
many founders would like to startup in each respective city. many founders would like to startup in each respective city.
&
76 In Partnership with www.thestateofeuropeantech.com

05.4 Building and internationalising away from home
“ I only invest in B2B software companies, and those can really come
from anywhere. That has also been proven in Europe with category
You need to look beyond defining companies emerging from beyond the tier-1/2 cities. You
need to look beyond the established startup hubs to find the really
the established startup interesting opportunities.”
hubs to find the really Teddie Wardi
interesting opportunities. Insight Venture Partners
Office space is one of the largest line items on the P&L for most tech companies,
and picking the right office environment and location is an important decision for
Oíce space is one of the largest line items on the P&L for most tech companies and picking the right oíce
founder to get right. For founders that are prepared to move, there is more choice
environment and location is an important decision to get right for founders. For founders that are prepared to
than ever. The wide variation of the cost of office space in different cities is just
move, there is more choice than ever. The wide variation of the cost of oíce space in different cities is just one
one factor to consider, though not necessarily a primary one.
factor to consider, though not necessarily a primary one.
Cost of prime rent ($ per square metre per London (Central), United Kingdom $1,496
year) for oíce space by city, 2Q 2018 Paris Ile-de-France, France $995
Stockholm, Sweden $852
Dublin, Ireland $819
LEGEND Zurich, Switzerland $757
Prime Rent ($ per square metre per year) Moscow, Russian Federation $729
Luxembourg City, Luxembourg $702
Milan, Italy $656
Oslo, Norway $640
Helsinki, Finland $562
Istanbul, Turkey $505
Amsterdam, Netherlands $480
Madrid, Spain $453
Berlin, Germany $443
Brussels, Belgium $369
Vienna, Austria $358
Athens, Greece $351
Budapest, Hungary $323
Warsaw, Poland $323
Copenhagen, Denmark $299
Prague, Czech Republic $292
Lisbon, Portugal $288
Kiev, Ukraine $277
Bucharest, Romania $260
Bratislava, Slovakia $239
Belgrade, Serbia $232
Zagreb, Croatia $211
Sofia, Bulgaria $197
0 250 500 750 1,000 1,250 1,500
$ per square metre per year
Source:
&
77 In Partnership with www.thestateofeuropeantech.com

05.4 Building and internationalising away from home
There are huge potential cost benefits by placing offices in locations outside the primary
hub, though the differences vary by country. In the U.K. and France, founders choosing to
build outside of London and Paris stand to benefit from hugely reduced fees on the relative
cost of office space. In Germany, on the other hand, the difference in the costs of office
space outside Berlin is far less pronounced.
There are huge potential cost bene�ts by locating o�ces in locationsT ohuetrsei adere t hheu pgeri pmoatreyn htiuabl c, tohsotu bgehn teh�ets by locating o�ces in locations outside the primary hub, though the
Cost of prime rent ($ per square metre per year) for office space
differences vary by country. In the UK and Paris, founders choosing tod bifufeilrde onuctess videa oryf b Lyo cnoduonnt aryn.d I Pn tahreis U sKta anndd t Poaris, founders choosing to build outside of London and Paris stand to
by city in selected countries, 2Q 2018
bene�t from hugely reduced fees on the relative cost of o�ce space.b Ienn Gee�rtm faronmy, o hnu tgheely o rethdeurc headn fde,e tsh oen the relative cost of o�ce space. In Germany, on the other hand, the
difference in the costs of o�ce space outside Berlin is far less pronoudnifcfeerde.nce in the costs of o�ce space outside Berlin is far less pronounced.
DATASET: FRANCE DATASET: GERMANY
Cost of prime rent ($ per square metre perParis (Ile-de-France) Cost of prime rent ($ per square metre pe$r995 Frankfurt am Main $562
year) for oíce space by city in selected year) for oíce space by city in selected
coun Marseille co$u3n75
tries, 2Q 2018 tries, 2Q 2018
Munich $520
DATASET: FRANCE DATASET: GERMANY
Lyon $351
LEGEND LEGEND Berlin $443
Prime Rent ($ per square metre per year) Nice $269 Prime Rent ($ per square metre per year)
Hamburg $379
Toulouse $258
Dusseldorf $379
Lille $258
Bordeaux $234 Cologne $309
0 200 400 600 800 1,000 0 100 200 300 400 500 600
There are huge potential cost bene�ts by locating o�ces in locationsT oheurtesi adree t hhueg per pimoateryn htiuabl c, tohsot ubgehn teh�ets by locating o�ces in locations outside the primary hub, though the
Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year)
There are huge potential cost bene�ts by locating o�ces in locations outside the primary hub, though the
differences vary by country. In the UK and Paris, founders choosing tod biffueirlde oncuetss vidaer oyf b Lyo cnoduonnt aryn. Idn P tahreis U sKta anndd t Poaris, founders choosing to build outside of London and Paris stand to
differences vary by country. In the UK and Paris, founders choosing to build outside of London and Paris stand to
bene�t from hugely reduced fees on the relative cost of o�ce space.b Ienn Gee�rtm fraonmy, h oung tehley o retdhuecr heda fnede, tsh oen the relative cost of o�ce space. In Germany, on the other hand, the
bene�t from hugely reduced fees on the relative cost of o�ce space. In Germany, on the other hand, the
Source: Source:
difference in the costs of o�ce space outside Berlin is far less pronoduinffceerde.nce in the costs of o�ce space outside Berlin is far less pronounced.
DATASET: SPAIN DATASET: UNITED KINGDOM
difference in the costs of o�ce space outside Berlin is far less pronounced.
Cost of prime rent ($ per square metre per Cost of prime rent ($ per square metre per
Cost of prime rent ($ per square metre perMadrid $453 London (Central) $1,496
year) for oíce space by city in selectedLondon (Central) year) for oíce space by city in selected $1,496
year) for oíce space by city in selected
coun coun
tries, 2Q 2018 tries, 2Q 2018
coun
tries, 2Q 2018 Barcelona $344 Manchester $513
Manchester $513
DATASET: SPAIN DATASET: UNITED KINGDOM
DATASET: UNITED KINGDOM
LEGEND LEGEND
LEGEND Malaga $485$169 Edinburgh $485
Edinburgh
Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year)
Prime Rent ($ per square metre per year)
Zaragoza $158 Birmingham $470
Birmingham $470
There are huge potential cost bene�ts by locating o�ces in locations outside the primary hub, though the
Valencia $152 Glasgow $463
Glasgow $463 differences vary by country. In the UK and Paris, founders choosing to build outside of London and Paris stand to
bene�t from hugely reduced fees on the relative cost of o�ce space. In Germany, on the other hand, the
Palma de Mallorca $140 Bristol $463
Bristol $463 difference in the costs of o�ce space outside Berlin is far less pronounced.
0 100 200 300 400 500 0 250 500 750 1,000 1,250 1,500
0 250 500 750 1,000 1,250 1,500
Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year)
Prime Rent ($ per square metre per year) Cost of prime rent ($ per square metre per London (Central) $1,496
year) for oíce space by city in selected
coun
Source: tries, 2Q 2018 Source:
Source: Manchester $513
DATASET: UNITED KINGDOM
LEGEND Edinburgh $485
Prime Rent ($ per square metre per year)
Birmingham $470
Europe’s leading hubs have many advantages, but OFFICE SPACE COSTS BY CITY $463
they’re also far more expensive to build from Glasgow
Difference in cost per square metre of
Bristol $463
prime office space in Paris (Ile-de-Fance)
0 250 500 750 1,000 1,250 1,500
compared to in Marseille, the next most
2.7x expensive French city Prime Rent ($ per square metre per year)
Source:
&
78 In Partnership with www.thestateofeuropeantech.com

New Hubs - Where Next?
European tech has huge upside if it can unlock the potential of its latent talent pools. The
size of the developer pools in comparison to relative levels of historical capital invested
European tech has huge upside if it can unlock the potential of its latent talent pools. The size of the developer
in them suggests that countries such as Italy, Poland or Spain still have large potential to
pools in comparison to relative level of historical capital invested in them suggests that countries such as Italy,
punch at a greater weight in the European tech ecosystem.
Poland or Spain still have large potential to punch at a greater weight in the European tech ecosystem.
Scatter of countries based on size of 1,000,000
professional developer talent pool and
capital invested ($M) (2013 to 9M 2018) Germany United Kingdom
s
r
pe 750,000
o
l
e
v
e
d

l
a
n
o
i France
s 500,000
s
e
f Russia
o
pr

f
o Italy Spain

#
250,000 Ukraine
Sweden
Romania
0
-5,000 0 5,000 10,000 15,000 20,000 25,000 30,000
Capital invested ($M)
Note:
Chart only includes countries with greater than 50,000 Source:
professional developers in 2018.
There are giant talent hubs that offer huge potential if the local pool can be mobilised
in the same way as in cities such as Berlin, Helsinki and Stockholm. Examples of these
There are giant talent hubs that offer huge potential if the local pool can be mobilised in the same way that has
large talent clusters that have not yet produced companies that have raised large sums of
been in achieved in cities such as Berlin, Helsinki and Stockholm. Examples of these large talent clusters that have
capital investment include Cologne, Kiev and Vienna.
not yet produced companies that have raised large sums of capital investment include Cologne, Kiev and Vienna.
400,000
Scatter of cities based on size of London
professional developer talent pool and
capital invested ($M) (2013 to 9M 2018)
s 300,000
r Paris
pe
o
l
e
v
e Amsterdam
d

l
a
n 200,000
o
i
s
s Cologne
e
f
o
pr

f Frankfurt am Main
o

# 100,000 Brussels Berlin
Stockholm
Budapest
0
-5,000 0 5,000 10,000 15,000 20,000 25,000
Capital invested ($M)
Note:
Investment amounts are based on capital invested in the city in Source:
aggregate between 2012 and September 2018.
&
79 In Partnership with www.thestateofeuropeantech.com

05.5 New Hubs - Where Next?
This emergence of growing and more engaged tech communities in new parts of
This emergence of growing and more engaged tech communities in new parts of the region is reðected too in the
the region is reflected too in the list of Top 10 fastest-growing tech hubs, ranked by
list of Top 10 fastest-growing tech hubs, ranked by year-on-year growth in active members of tech-related Meetup
year-on-year growth in active members of tech-related Meetup groups.
groups.
Top 10 fastest growing hubs in Europe by YoY St. Petersburg, Russia 93%
growth rate of active members Sofia, Bulgaria 81%
Porto, Portugal 72%
LEGEND
YoY member growth 2017-2018 (%) Lviv, Ukraine 68%
Bern, Switzerland 67%
Cardiff, United Kingdom 65%
Vilnius, Lithuania 65%
Wroclaw, Poland 63%
Newcastle, United Kingdom 60%
Stuttgart, Germany 59%
0 20 40 60 80 100
% YoY growth
Note:
2018 annualised based on active members to end of September Source:
2018
As new hubs continue to proliferate across Europe, the region's leading investors are increasingly backing
founders from these locations. In the past 12 months, founders building companies in as diverse a set of cities as
Lille, St Gallen and Warsaw have all raised funding from leading European VCs.
As new hubs continue to proliferate across Europe, Selected investments in new tech hubs
the region’s leading investors are increasingly Country Company Lead Investor Round Type Round Size ($M)
Selected investments in new tech hubs Brussels Belgium Cowboy Tiger Global Series A 12
backing founders from these locations. In the past 12
months, founders building companies in as diverse Edinburgh UK Care Sourcer ADV Series A 11
a set of cities as Lille, St Gallen and Warsaw have all Gothenburg Sweden NA-KD Partech Series B 45
raised funding from leading European VCs. Lille France OpenIO Partech Series A 5
Milan Italy Freeda Media Alven Capital Series A 10
Oxford UK Ultromics OSI Series A 13
Reykjavik Iceland Teatime Games Index, Atomico Series A 7
St Gallen Switzerland Frontify Blossom Capital Series A 8
St Paul's Bay Malta FRVR Accel Seed 3
Tallinn Estonia Veriff Mosaic Series A 8
Warsaw Poland Packhelp SpeedInvest Seed 2
Source:
We are probably in one of the most difficult positions –
trying to produce the world’s fastest electric sportscars
out of a country that never had a car industry and has
zero market for our products.
“ I believe that for software startups, location is not that important.
It is harder for hardware startups, especially those whose products
are linked to the country’s prestige. We are probably in one of the
most difficult positions – trying to produce the world’s fastest electric
sportscars out of a country that never had a car industry and has zero
market for our products. Despite everything, we have managed to
attract funding, the right customers (all major European carmakers)
Mate Rimac and talent. It is possible, but probably much much harder than doing it
Rimac Automobili in the “right place.”
&
80 In Partnership with www.thestateofeuropeantech.com

05.5 New Hubs - Where Next?
There is a wide variation in the average software engineer salary both across countries
and even within them. According to Glassdoor, software engineers have the highest
There is a wide variation in the average software engineer salary both across countries and even within them.
median salary in Berlin, which reflects the fact that Berlin has a disproportionately low
According to Glassdoor, software engineers have the highest median salary in Berlin, which reðects the fact that it
density of local professional developers compared to other cities, but a large number
has a disproportionately low density of local professional developers compared to other cities, but a large number
of well-capitalised VC-backed companies that are chasing talent.
of well-capitalised VC-backed companies that are chasing talent.
Average software engineer salary per year by Berlin $58,750
city
London $54,000
LEGEND
Annual salary ($) Amsterdam $52,250
Vienna $51,500
Paris $49,750
Cambridge $46,000
Helsinki $44,500
Barcelona $40,250
Madrid $36,750
Milan $36,750
Lisbon $31,500
Rome $29,750
Prague $25,000
Warsaw $24,250
Note:
Rounded to nearest $250. Data pulled from Glassdoor on 24 Source: Glassdoor
October 2018. Glassdoor
The huge spread in the cost of software SOFTWARE ENGINEER SALARIES BY CITY
engineering talent across European cities is driving
talent mobility and higher distribution of company Difference in the median base salary of
building. a software engineer in Berlin compared
2.4x to Warsaw
Glassdoor
81 In Partnership with & www.thestateofeuropeantech.com
Photo: Damon Beckford

Research and
Development
A Look Around the Corner Europe is a research powerhouse. Its prolific research
community exceeds that of the U.S. and China, and is
flexing its muscle in deep tech. This research prowess
can be a strong differentiator for European tech as
science and tech further converge. The key to making
that happen: knowledge transfer and better links
between STEM and startups.
ARTICLES
06.1 Mobilising Europe’s R&D talent pool
06.2 Deepening Europe’s frontier tech credentials
In Partnership with & www.thestateofeuropeantech.com

Mobilising Europe’s R&D talent
pool
If talent represents the foundations of the European tech ecosystem, its academic institutions are the bedrock.
Europe is home to 14 of the Top 50 computer science universities in the world, including 5 of the Top 10. Europe is,
If talent represents the foundations of the European Europe’s universities among global top 50 in
in short, a factory for producing world-class computer science talent.
tech ecosystem, its academic institutions are computer science and their global rank
the bedrock. Europe is home to 14 of the Top 50 University Country
Europe's universities among global top 50 in 3 University of Oxford United Kingdom
computer science and their global rank
computer science universities in the world, including
5 of the Top 10. Europe is, in short, a factory for 4 ETH Zurich Switzerland
producing world-class computer science talent. 5 University of Cambridge United Kingdom
9 Imperial College London United Kingdom
10 EPF Switzerland
14 University of Edinburgh United Kingdom
16 Technical University of Munich Germany
18 UCL United Kingdom
36 Karlsruhe Institute of Technology Germany
37 RWTH Aachen University Germany
=42 Delft University of Technology Netherlands
=42 Technical University of Berlin Germany
47 LMU Munich Germany
50 KU Leuven Belgium
Note:
4 of the world's top 10 and 31 of the world's top 100
Compiled by the Times Higher Education Supplement and Source: Times Higher Education World University Rankings
gathered by CERN. 2018
universities in engineering and technology are located in
Looking beyond just computer science, Europe Europe’s universities among global top 100 in
Europe engineering and technology and their global rank
is home to 31 of the world’s top 100 universities in
engineering and technology. These 31 universities University Country
Europe's universities among global top 100 in 3 University of Oxford United Kingdom
engineering and technology and their global
are distributed across 11 different countries and 29 5 University of Cambridge United Kingdom
rank
different cities and reflect the fact that European 9 ETH Zurich Switzerland
STEM talent is inherently spread across the region 10 Imperial College London United Kingdom
driven by the strong academic institutions that 14 École Polytechnique Fédérale de Lausanne Switzerland
exist in all corners of the region. There are, in short, 18 Delft University of Technology Netherlands
clusters of world-class talent potential in every 21 Technical University of Munich Germany
corner of Europe. 24 RWTH Aachen University Germany
36 UCL United Kingdom
37 KU Leuven Belgium
38 KTH Royal Institute of Technology Sweden
43 Technical University of Berlin Germany
45 University of Edinburgh United Kingdom
46 University of Manchester United Kingdom
51 Eindhoven University of Technology Netherlands
55 Karlsruhe Institute of Technology Germany
58 Technical University of Denmark Denmark
75 University of Bristol United Kingdom
77 University of Stuttgart Germany
79 Chalmers University of Technology Sweden
82 École Polytechnique France
84 University of She eld United Kingdom
85 Aalborg University Denmark
86 Norwegian University of Science and Technology Norway
87 University of Southampton United Kingdom
88 University of Freiburg Germany
90 Polytechnic University of Milan Italy
94 TU Dresden Germany
95 University of Erlangen-Nuremberg Germany
96 Lund University Sweden
99 Aalto University Finland
Note: Times Higher Education
'Rank' refers to position in global list of top 100 institutions for Source: Times Higher Education World University Rankings
World University Rankings 2018
engineering and technology quali cations. Compiled by the 2018
Times Higher Education Supplement and gathered by CERN.
&
83 In Partnership with www.thestateofeuropeantech.com

06.1 Mobilising Europe’s R&D talent pool
“ For the past decade or so, European VCs have been cheerfully ignoring the academic and
scientific communities. That’s because they have been making great returns from internet
For the past decade or and mobile platforms, and have developed superb domain experience and expertise in these
areas. Besides, making money out of science is very hard, and there are significant barriers
so, European VCs have to entry. But, to quote Bob Dylan, the times they are a changin’... First, the “easy” money
from Web 2.0 is less obvious as this platform has reached maturity. Second, the many great
been cheerfully ignoring challenges facing the world will require deep tech (or rather deep science) solutions. Third, the
the academic and convergence of tech, AI, Genomics, etc. creating new “internet” type opportunities will create
the next Googles and Amazons. Fourth, the desire for impact. A new generation of scientists,
scientific communities... VCs, philanthropists, and entrepreneurs want to make the world a better place, not just get
rich. They aren’t interested in the next app for drone delivered pizzas. Fifth, universities are
But, to quote Bob Dylan, under pressure to engage with VCs and to enable the channelling of their research into the
outside world. And finally, VCs can bring money, but more importantly their talent, to combine
the times they are a with deep tech/science so this channel becomes REAL”
changin’...
Dave Norwood
Oxford Sciences Innovation
The EU has a large research community that exceeds its
counterparts in the US and China in size # of researchers in EU-28, China and the US
As technology and, specifically, software continue
their relentless march into every part of the economy,
# of researchers in EU-28, China and the US
it will become critical for Europe to unlock the potential EU-28
1,764,084
LEGEND
of its large research community. It will need to mobilise
# of researchers in 2014
to help European tech companies succeed in new
frontiers where tech meets science. The research
community is a huge potential asset, exceeding both China 1,524,280
the US and China today in total numbers.
USA 1,351,903
0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000
# of researchers
Note:
A researcher is a professional in conception or creation of Source: Eurostat
knowledge, products, processes, methods, systems & Eurostat
management of these projects. # of researchers in full-time
equivalent (FTE). Data sourced from Eurostat and gathered by
There are more than 1.8 million scientists and engineers across Europe, specialising in every ïeld. Germany and
CERN. Data for 2014.
the UK are the two largest homes to the European research community by far, with more than 300,000 in each
There are more than 1.8 million scientists and engineers across Europe, specialising in
There are more than 1.8 million scientists and engineers across Europe, specialising in every ïeld. Germany and
respective country. France, Italy, Poland and Spain all also have sizeable communities of scientists and engineers.
every field. Germany and the UK are the two largest homes to the European research
the UK are the two largest homes to the European research community by far, with more than 300,000 in each
There are more than 1.8 million scientists and engineers across Europe, specialising in every ïeld. Germany and
community by far, with more than 300,000 in each respective country. France, Italy, Poland
respective country. France, Italy, Poland and Spain all also have sizeable communities of scientists and engineers.
the UK are the two largest homes to the European research community by far, with more than 300,000 in each
# of scientists and engineers by country
and Spain all also have sizeable communities of scientists and engineers.
respective country. France, Italy, Poland and Spain all also have sizeable communities of scientists and engineers.
LEGEND
upto 3,500,000
# of scientists and engineers by country
# of scientists and engineers by country
2,500,000 to 3,000,000
LEGEND2,000,000 to 2,500,000
LEGEND
1,500,000 to 2,000,000
upto 3,500,000
upto 3,500,000
1,000,000 to 1,500,000
2,500,000 to 3,000,000
2,500,000 to 3,000,000
500,000 to 1,000,000
2,000,000 to 2,500,000
upto 500,000
2,000,000 to 2,500,000
1,500,000 to 2,000,000
1,500,000 to 2,000,000
1,000,000 to 1,500,000
500,000 to 1,000,000
1,000,000 to 1,500,000
upto 500,000
500,000 to 1,000,000
upto 500,000
Note:
Scientists and engineers refer to persons with scientiïc or Source: Eurostat
technological training who are engaged in professional work on
science and technology. Data is sourced from Eurostat and
gathered by CERN. Latest data is 2017.
Note:
Scientists and engineers refer to persons with scientiïc or Source: Eurostat
technological training who are engaged in professional work on
science and technology. Data is sourced from Eurostat and
gathered by CERN. Latest data is 2017.
&
84 In Partnership with www.thestateofeuropeantech.com
Note:
Scientists and engineers refer to persons with scientiïc or Source: Eurostat
technological training who are engaged in professional work on
science and technology. Data is sourced from Eurostat and
gathered by CERN. Latest data is 2017.

06.1 Mobilising Europe’s R&D talent pool
Europe has some of the world’s leading
research centres, and the talent coming
out of these centres has increasing
entrepreneurial ambitions. The trend is
clearly upward.
“ Europe is in the early days of tapping its R&D talent pool. There
are still barriers here with regards to tech transfer and IP, access
to funding to scale capital-intensive, research-based businesses,
and to some degree, a perception barrier around the feasibility
of ‘commercially-driven,’ non-academic careers. However, this is
changing. The good news is that Europe has some of the world’s
leading research centers, and the talent coming out of these
Irina Haivas centers has increasing entrepreneurial ambitions. The trend is
Atomico clearly upward.”
Looking at the clusters of scientists and engineers relative to the overall population size of different countries, the
Looking at the clusters of scientists and engineers relative to the overall population size of different countries, the
highest density communities can be found in the Nordics and Switzerland.
The Nordics have the highest density of researchers per capita.
highest density communities can be found in the Nordics and Switzerland.
Looking at the clusters of scientists and engineers relative to the overall population size of different countries, the
highest density communities can be found in the Nordics and Switzerland.
Share of scientists and engineers in total
Share of scientists and engineers in total
population population
Share of scientists and engineers in total
population
LEGEND
LEGEND upto 4.50
upto 4.50 LEGEND
3.50 to 4.00
upto 4.50
3.50 to 4.00 3.00 to 3.50
3.50 to 4.00
2.50 to 3.00
3.00 to 3.50 3.00 to 3.50
2.00 to 2.50
2.50 to 3.00 2.50 to 3.00
1.50 to 2.00
2.00 to 2.50
2.00 to 2.50 1.00 to 1.50
1.50 to 2.00
0.50 to 1.00
1.50 to 2.00 1.00 to 1.50
upto 0.50
1.00 to 1.50 0.50 to 1.00
upto 0.50
0.50 to 1.00
upto 0.50
Note: Eurostat
Scientists and engineers refer to persons with scienti c or
technological training who are engaged in professional work on
Note:
science and technology. Data is sourced from Eurostat and
Scientists and engineers refer to persons with scienti c or
gathered by CERN. Latest data is 2017.
technological training who are engaged in professional work on
science and technology. Data is sourced from Eurostat and
gathered by CERN. Latest data is 2017. Source: Eurostat
Source: Eurostat
Note:
Scientists and engineers refer to persons with scientiïc or Source: Eurostat
The openness and the sharing of “ CERN’s natural environment is about collaboration and openness.
technological training who are engaged in professional work on By pooling together resources, brainpower and complementary
science and technology. Data is sourced from Eurostat and expertise, CERN creates unique value that opens new doors for all.
information is something, I presume,
gathered by CERN. Latest data is 2017. The result is more than the sum of what its Member States could
tech companies will have to do more create nationally, and so the benefit is more than a financial one. For
of in the future and hopefully they can this to work, CERN collaborates with a large number of partners and I
believe this is something start-ups can learn from.
learn from CERN in that regard.
CERN has developed a collaborative model of working which is very
special and its governance has proven it is capable of extraordinary
advances in science and technology since its creation in 1954. The
Giovanni Anelli Large Hadron Collider and the discovery of the Higgs boson are
European Organization for Nuclear concrete examples that highlight the success of this international
Research (CERN) collaboration. The openness and the sharing of information is
something, I presume, tech companies will have to do more of in the
future and hopefully they can learn from CERN in that regard.”
&
85 In Partnership with www.thestateofeuropeantech.com

06.1 Mobilising Europe’s R&D talent pool
The European tech ecosystem is built on top EUROPEAN RESEARCHER TALENT
of a large pool of researcher talent that it has
largely untapped. Total researchers in
Europe
2m Eurostat
Europe’s research community is an ideas and knowledge factory and produces
research at a level that is globally competitive and on par with the US.
Europe publishes almost as many research papers as the US
# of publications in Europe, China and the US
US 19,579
LEGEND
Count of publications in 2017
Europe 18,070
China 9,089
0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500
# of publications (fractional count)
Note:
'Count' refers to a fractional count that takes into account the
percentage of authors from that institution/country and the
number of aíliated institutions per paper. Data sourced via
Nature Index and gathered by CERN.
But it is not just quantity, but also the quality of research that originates
from Europe. The European research community leads the world by share of
publications in the top 10% most cited, though China is gaining ground at an
impressive rate. The European Union produces the most publications in the
top 10% ranked by citings, but China is catching up fast
Share of publications in the top 10% most 43%
cited publications
US
LEGEND 30%
Share in 2000 (%)
Share in 2014 (%)
1%
China
12%
33%
EU-28
32%
Note:
A fractional count takes into account the percentage of
authors from that institution/country and the number of
aíliated institutions per paper. Data sourced via European
Commission Directorate-General for Research and Innovation
and gathered by CERN.
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86 In Partnership with www.thestateofeuropeantech.com

06.1 Mobilising Europe’s R&D talent pool
For its size, Switzerland is the publication powerhouse of Europe, driven by the strength of its world-leading
For its size, Switzerland is the publication powerhouse of Europe, driven by the strength of its world-leading
research institutions such as ETH Zurich and EPF Lausanne.
For its size, Switzerland is the publication powerhouse of Europe, driven by the strength
For its size, Switzerland is the publication powerhouse of Europe, driven by the strength of its world-leading
research institutions such as ETH Zurich and EPF Lausanne.
research institutions such as ETH Zurich and EPF Lausanne.
of its world-leading research institutions such as ETH Zurich and EPF Lausanne.
# of publications per country (fractional
count)
# of publications per country (fractional
# of publications per country (fractional
count) count)
LEGEND
upto 4,500
LEGEND
LEGEND 3,500 to 4,000
upto 4,500
upto 4,500 3,000 to 3,500
3,500 to 4,000
2,500 to 3,000
3,500 to 4,0003,000 to 3,500
2,000 to 2,500
2,500 to 3,000
3,000 to 3,5001,500 to 2,000
2,000 to 2,500
2,500 to 3,0001,000 to 1,500
1,500 to 2,000
500 to 1,000
1,000 to 1,500
2,000 to 2,500
upto 500
1,500 to 2,000500 to 1,000
upto 500
1,000 to 1,500
500 to 1,000
upto 500
Eurostat
Note:
A fractional count that takes into account the percentage of Source: Eurostat
authors from that institution/country and the number of
Note:
aíliated institutions per paper. Data is for 2017. Data sourced Source: Eurostat
A fractional count that takes into account the percentage of
via Nature Index and gathered by CERN.
authors from that institution/country and the number of
aíliated institutions per paper. Data is for 2017. Data sourced
via Nature Index and gathered by CERN.
Even though the largest countries in Europe publish the most papers, the share of publications in the top 10%
Even though the largest countries in Europe publish the most papers, the share of
Note:
publications in the top 10% most cited reveals a wider group of countries contributing
most cited reveals a wider group of countries contributing strongly to European research. European research
Even though the largest countries in Europe publish the most papers, the share of publications in the top 10%
A fractional count that takes into account the percentage of Source: Eurostat
Even though the largest countries in Europe publish the most papers, the share of publications in the top 10%
authors from that institution/country and the number of
strongly to European research. European research talent is inherently distributed. As
most cited reveals a wider group of countries contributing strongly to European research. European research
talent is inherently distributed. As tech and research collide further, this will likely only further drive the already
aíliated institutions per paper. Data is for 2017. Data sourced
most cited reveals a wider group of countries contributing strongly to European research. European research
talent is inherently distributed. As tech and research collide further, this will likely only further drive the already
tech and research collide further, this will likely only further drive the already rich level of
via Nature Index and gathered by CERN.
rich level of geographic diversity that characterises the European tech ecosystem.
talent is inherently distributed. As tech and research collide further, this will likely only further drive the already
rich level of geographic diversity that characterises the European tech ecosystem.
geographic diversity that characterises the European tech ecosystem.
rich level of geographic diversity that characterises the European tech ecosystem.
Share of publications in the top 10% most
Share of publications in the top 10% most
Share of publications in the top 10% most
cited publications
cited publications
cited publications
LEGEND
LEGEND
upto 15.0
LEGEND upto 15.0
13.0 to 14.0
upto 15.0 13.0 to 14.0
12.0 to 13.0
12.0 to 13.0
13.0 to 14.0 11.0 to 12.0
11.0 to 12.0
12.0 to 13.0 10.0 to 11.0
10.0 to 11.0
9.0 to 10.0
11.0 to 12.0 9.0 to 10.0
8.0 to 9.0
8.0 to 9.0
10.0 to 11.0 6.0 to 8.0
6.0 to 8.0
9.0 to 10.0 4.0 to 6.0
4.0 to 6.0
3.0 to 4.0
8.0 to 9.0 3.0 to 4.0
upto 3.0
6.0 to 8.0 upto 3.0
4.0 to 6.0
3.0 to 4.0 Eurostat
upto 3.0 Note:
A fractional count takes into account the percentage of
Note:
authors from that institution/country and the number of
A fractional count takes into account the percentage of
aíliated institutions per paper. Data is for 2014, the most
authors from that institution/country and the number of
recent available. Data sourced via European Commission RIO
aíliated institutions per paper. Data is for 2014, the most
and gathered by CERN.
recent available. Data sourced via European Commission RIO
and gathered by CERN.
Note:
A fractional count takes into account the percentage of WORLD-CLASS TECHNICAL UNIVERSITIES
The European tech ecosystem is underpinned by a
authors from that institution/country and the number of
supply of world-class academic talent
aíliated institutions per paper. Data is for 2014, the most
recent available. Data sourced via European Commission RIO of the world’s Top 100 engineering
and gathered by CERN. and technology universities globally
31% are European.
Eurostat
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87 In Partnership with www.thestateofeuropeantech.com

Deepening Europe’s frontier
tech credentials
FFrraannccee,, G Geerrmmaannyy a anndd t thhee U UKK a arree t thhee l laarrggeesstt d deessttiinnaattiioonnss f foorr c caappiittaall i innvveessttmmeennttss i innttoo E Euurrooppeeaann t teecchh c coommppaanniieess,,
Europe has experienced rapid growth in
bbuutt t thheerree a arree m meeaanniinnggffuull su summss b beeiinngg i innvveesstteedd i innttoo d deeeepp t teecchh c coommppaanniieess a accrroossss t thhee r reeggiioonn,, i inncclluuddiinngg i innttoo
investments into deep tech.
ccoouunnttrriiees sus succhh a as Ss Swweeddeenn a anndd S Swwiittzzeerrllaanndd..
CCaappiittaall i innvveesstteed (d ($$MM)) i inn E Euurrooppeeaann de deeepp tteecchh DATASET: TOP 10 COUNTIRES
ccoommppaanniieess b byy c coouunnttrryy UUnniitteedd KKiinnggddoomm 1,752
4,182 1,752
4,182
FFrraannccee 912
1,958 912
1,958
LLEEGGEENNDD
Germany
Germany 1,372 335511
1,372
22001133--22001177
Switzerland
Switzerland 618
22001188 660044 618
SSwweeddeenn 145
918 145
918
Netherlands
Netherlands 93
611 93
611
Spain
Spain 333388
Finland
Finland 331133
BBeellggiiuumm 294
294
Austria
Austria 288
288
0 1,000 2,000 3,000 4,000 5,000 6,000
0 1,000 2,000 3,000 4,000 5,000 6,000
FFrraannccee,, G Geerrmmaannyy a anndd t thhee U UKK a arree t thhee l laarrggeesstt d deessttiinnaattiioonnss f foorr c caappiittaall i innvveessttmmeennttss i innttoo E Euurrooppeeaann t teecchh c coommppaanniieess,,
CCaapipittaall iinnvveesstteedd (($$MM))
bbuutt t thheerree a arree m meeaanniinnggffuull su summss b beeiinngg i innvveesstteedd i innttoo d deeeepp t teecchh c coommppaanniieess a accrroossss t thhee r reeggiioonn,, i inncclluuddiinngg i innttoo
ccoouunnttrriiees sus succhh a as Ss Swweeddeenn a anndd S Swwiittzzeerrllaanndd..
SSoouurrccee::
DATASET: COUNTRIES 11-20
CCaappiittaall i innvveesstteed (d ($$MM)) i inn E Euurrooppeeaann de deeepp t teecchh IrIreelalanndd 223366 3399
ccoommppaanniieess b byy c coouunnttrryy ItItaalyly 119922 8833
NoNottee::
22001188 bbaasseedd oonn 99 momonntthhss ttoo SSeepptteembmbeerr 22001188 aanndd prproojjeeccttiioonn ffoorr NNoorrwwaayy 117700 4400
DDAATTAASSEETT:: CCOOUUNNTTRRIIEESS 1111--2200 AANNDD RREESSTT OOFF
QQ44 22001188 bbaasseedd oonn QQ33 22001188..
EEUURROOPPEE CCyypprruuss
5566 115511
LLEEGGEENNDD RRuussssiaia 111144 4444
22001133--22001177
DDeennmmaarrkk 7711 8877
22001188
PPoorrttuuggaall 5577 4411
PPoolalanndd 6622 00
RRoommaanniaia 6600 00
EEssttoonniaia 5500 00
RReesstt o off E Euurrooppee 114499 44
00 5500 110000 115500 220000 225500 330000
CCaapipittaal li ninvveesstteedd ( $($MM))
NoNottee::
22001188 b baasseedd o onn 9 9 mo monntthhss t too S Seepptteembmbeerr 2 2001188 a anndd pr proojejeccttioionn f foorr SSoouurrccee::
QQ44 2 2001188 b baasseedd o onn Q Q33 2 2001188..
The level of capital invested into European deep tech companies exceeded $5B again in 2018 across more than 800
deals. This investment encompasses both companies that are working on solving core technology problems, as
well as those companies that are applying deep technology to seek to transform a range of target industries.
Capital invested ($B) in and # of deals closed 5.0 1,075.0
by European deep tech companies 4.6
4.3 1,000.0
LEGEND 4.0 857.0
Capital invested ($B) ) 784.0
B 3.2
$
( 800.0
#
# of deals d 3.0
e o
t f
s
e d
v e
n 615.0 2.4 a
i
l
l s
a
t 600.0
pi 2.0
a
C 1.6
1.0 400.0
0.7
0.0 200.0
2013 2014 2015 2016 2017 2018
Note:
2018 based on 9M to September 2018 and projection for Q4 2018 Source:
based on Q3 2018.
&
88 In Partnership with www.thestateofeuropeantech.com

06.2 Deepening Europe’s frontier tech credentials
Many interesting deep tech companies have raised funding Many interesting deep tech companies have raised funding
Many interesting deep tech companies have raised Selected investment rounds raised by European
this year in Europe deep tech companies in 2018 this year in Europe
funding this year in Europe.
Industry Location Last round Round size ($M) Industry Location Last round Round size ($M)
Selected investment rounds raised by UiPath Enterprise software Romania Series C 225
European deep tech companies in 2018 Selected investment rounds raised by UiPath Enterprise software Romania Series C 225
European deep tech companies in 2018
Ledger FinTech France Series B 69 Ledger FinTech France Series B 69
Celonis Enterprise software Germany Series B 50 Celonis Enterprise software Germany Series B 50
Darktrace Legal security United Kingdom Series E 50 Darktrace Legal security United Kingdom Series E 50
Meero Media France Series B 45 Meero Media France Series B 45
Iceye Media, Transporation Finland Series B 34 Iceye Media, Transporation Finland Series B 34
Navya Robotics, Transportation France Series C 34 Navya Robotics, Transportation France Series C 34
Varjo Media Finland Series B 31 Varjo Media Finland Series B 31
Medopad Health, Enterprise software United Kingdom Series A 28 Medopad Health, Enterprise software United Kingdom Series A 28
Tractable FinTech United Kingdom Series B 25 Tractable FinTech United Kingdom Series B 25
Note: Note:
Some of the numbers converted from EUR to USD with an FX Source: Some of the numbers converted from EUR to USD with an FX
rate of 1.13, the rate on 14 November 2018. rate of 1.13, the rate on 14 November 2018. Source:
“ Going forward, I can see more R&D based start-ups coming out
of European universities, building off multidisciplinary teams of
scientists and engineers and tackling some of the large challenges of
our century like sustainability and health. These businesses will likely
be global from day one. Europe will then need to make sure to keep
(and fund) this talent here, by creating the right incentives for the eco-
system and adapting to the different requirements these businesses
Irina Haivas have in terms of funding and milestone expectations, new business
Atomico models and talent.”
Artiïcial Intelligence continues to dominate the deep tech Arti cial Intelligence continues to dominate the deep tech
landscape in terms of capital invested. landscape in terms of capital invested.
Artificial Intelligence continues to dominate the Capital invested ($M) by deep tech sub-category
Capital invested ($M) by deep tech sub- Artificial Intelligence 234 582 1,086 1,382 2,306 1,965 Artificial Intelligence 234 582 1,086 1,382 2,306 1,965
deep tech landscape in terms of capital invested. Hardware 408 376 1,197 1,674 943 1,282
category Capital invested ($M) by deep tech sub- Hardware 408 376 1,197 1,674 943 1,282
Internet of Things 62 223 555 837 677 684
category Internet of Things 62 223 555 837 677 684
Blockchain 45 133 66 171 223 651
3D 100 111 282 325 264 610 Blockchain 45 133 66 171 223 651
Big data 146 317 455 358 516 452 3D 100 111 282 325 264 610
Robotics 10 35 94 187 243 368 Big data 146 317 455 358 516 452
Search 96 441 458 575 328 299 Robotics 10 35 94 187 243 368
Virtual reality 7 32 160 304 652 244 Search 96 441 458 575 328 299
Computer vision 23 3 106 115 107 237 Virtual reality 7 32 160 304 652 244
Developer tools 78 156 97 142 668 205 Computer vision 23 3 106 115 107 237
Semiconductors 154 78 162 159 159 183 Developer tools 78 156 97 142 668 205
Nanotech 23 13 101 182 49 145 Semiconductors 154 78 162 159 159 183
Predictive analytics 16 353 274 273 156 120 Nanotech 23 13 101 182 49 145
Drones 7 3 70 75 29 112 Predictive analytics 16 353 274 273 156 120
Deep learning 19 31 89 63 196 71 Drones 7 3 70 75 29 112
Speech & Hearing 23 71 2 37 35 14 Deep learning 19 31 89 63 196 71
Radar 9 21 5 19 13 0 Speech & Hearing 23 71 2 37 35 14
2013 2014 2015 2016 2017 2018 Radar 9 21 5 19 13 0
Note: 2013 2014 2015 2016 2017 2018
Hardware includes hardware manufacturing. 2018 based on 9 Source:
months to September 2018 and projection for Q4 2018 based on Note:
Q3 2018. Hardware includes hardware manufacturing. 2018 based on 9 Source:
months to September 2018 and projection for Q4 2018 based on
Q3 2018.
Throughout history, Europe’s been known for its innovations and even
today, top research projects are led by European teams, so let’s make
sure this remains the case in the coming years.
“ Europe is home to the largest share of top 100 AI research institutions
globally in addition to being home to half of the top computer
science institutions. Throughout history, Europe’s been known for
its innovations and even today, top research projects are led by
European teams, so let’s make sure this remains the case in the
coming years.”
Rasmus Ekholhm
Slush
&
89 In Partnership with www.thestateofeuropeantech.com

Regulation
Bridging Tech & Policy The tech and policy worlds are moving closer together
as they seek to bridge any differences and avoid talking
past each other. Founder opinions are balanced on GDPR
and the general direction of tech policy in the region.
Data privacy and content copyright continue to dominate
policy discussion, and regulators are overlooking new key
technology fields.
ARTICLES
07.1 Embracing Regulation
07.2 Evolving Tech Policy in Europe
07.3 What Founders Want
In Partnership with & www.thestateofeuropeantech.com

Embracing Regulation
There is clear evidence of a strong desire from within Europe to build bridges between the
There is, however, clear evidence of a strong desire from within Europe to build bridges between the tech and
tech and policy spheres. A majority of founders, investors and policymakers agree that
policy spheres. A majority of founders, investors and policymakers agree that there should be stronger ties
there should be stronger ties between European tech startups/scaleups and governments.
between European tech startups/scapeups and governments
European tech startups and scale-ups need
stronger ties with governments Founder or startup/scale-up employee
LEGEND
Agree
Neither agree nor disagree
Disagree Venture capitalist
Policymaker or employee in the public
sector
0 20 40 60 80 100
% of respondents
Source:
&
91 In Partnership with www.thestateofeuropeantech.com
Photo: Sami Heiskanen

07.1 Embracing Regulation
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
Only 24% of total respondents believe that regulation has had a negative impact on the
Founder or
startup /scale-up
European tech industry in the past 12 months. This varies, however, by occupation and
employee
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
region. Respondents from France are most positive on the impact of regulation, while
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
founders skew slightly more negative than positive, but only by a fraction.
Investor
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
Note:
Company size: Founder respondents only.
What impact has regulation in Europe had on DATASET: ALL RESPONDENTS
Policymaker or
the European tech industry in the last 12 public sector employee
What impact has regulation in Europe had on
months? All respondents
the European tech industry in the last 12
months? All respondents
LEGEND Other
0 10 20 30 40 50 60 70 80 90 100
Positive % of respondents
LEGEND 0 10 20 30 40 50 60 70 80 90 100
Neutral 0 20 40 60 80 100
Positive % of respondents
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
Negative % of respondents
Neutral
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
Negative Source:
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
DATASET: SUBREGION
Source:
Source:
Central Europe & Baltics
Founder or
startup /scale-up
employeeDACH
Eastern Europe
Investor
France & Benelux
Note:
Company size: Founder respondents only.
Policymaker or
Nordics
public sector employee
Southern Europe
Other
UK & Ireland
0 0 20 20 40 40 60 60 80 80 100 100
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
% of respondents
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
% of respondents
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
Source:
DATASET: OCCUPATION
Source:
Founder or
Founder or
startup /scale-up
startup /scale-up
employee
employee
What impact has regulation in Europe had on
Investor
the European tech industry in the last 12 Investor
months?
Note:
Note:
DATASET: SUBREGIONS
Company size: Founder respondents only.
Company size: Founder respondents only. Policymaker or
Policymaker or
LEGEND public sector employee
public sector employee
Positive
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
Neutral
Only 24% of total respondents believe that regulation has had a negative impact on the European tech industry in
Other
Other
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
Negative
the past 12 months. This varies, however, by occupation and region. Respondents from France are most positive
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
on the impact of regulation, while Founders skew slightly more negative than positive, but only by a fraction.
0 0 20 20 40 40 60 60 80 80 100 100
% of respondents
% of respondents
Founder or
startup /scale-up
employee
DATASET: COMPANY SIZE BY # OF EMPLOYEES
Source:
Source:
Investor
<=10
Note:
Company size: Founder respondents only.
Note:
Company size: Founder respondents only.
Policymaker or
11-100
public sector employee
100+
Other
0 0 10 20 20 30 40 40 50 60 60 70 80 80 90 100 100
% of respondents
% of respondents
Source:
Source:
What impact has regulation in Europe had on
the European tech industry in the last 12
months?
DATASET: COMPANY SIZE BY # OF EMPLOYEES
&
92 LEGEND In Partnership with www.thestateofeuropeantech.com
Positive
Neutral
Negative
Note:
Company size: Founder respondents only.

07.1 Embracing Regulation
Six months after the implementation of GDPR, Founders across Europe view data protection and privacy as the
Six months after the implementation of GDPR, Founders across Europe view data
most challenging area of regulation for their business.
Six months after the implementation of GDPR, Founders across Europe view data protection and privacy as the
protection and privacy as the most challenging area of regulation for their business.
most challenging area of regulation for their business.
Which one area of regulation do you view as UK & Ireland 35 13 10 5 6 4 3 2 3 1 17
most challenging for your company in 2018? Southern Europe 25 17 15 11 9 2 3 8 2 3 6
Which one area of regulation do you view as UK & Ireland 35 13 10 5 6 4 3 2 3 1 17
most challenging for your company in 2018? Nordics 22 16 10 11 8 5 4 4 3 2 15
LEGEND Southern Europe 25 17 15 11 9 2 3 8 2 3 6
upto 35 France & Benelux 21 16 14 9 7 3 3 3 4 6 13
LEGEND Nordics 22 16 10 11 8 5 4 4 3 2 15
25 to 30
upto 35 Eastern Europe 25 7 12 13 16 7 4 3 3 1 7
20 to 25 France & Benelux 21 16 14 9 7 3 3 3 4 6 13
25 to 30 DACH 27 11 8 9 14 5 3 3 5 5 12
15 to 20 Eastern Europe 25 7 12 13 16 7 4 3 3 1 7
20 to 25
10 to 15 Central Europe & Baltics 16 14 9 14 15 6 7 4 2 6 7
15 to 20 DACH 27 11 8 9 14 5 3 3 5 5 12
5 to 10
10 to 15 y t n x n t s n g n s
c n o a o h t o n o a
Central Europe & Baltics a16 e14 i 9 T14 i 15 g6 n7 i 4 i 2 i 6 e 7
t t i e t s t r
upto 5 v i r
i m t a y t c n a a
r y e c a e e s
p i p t i e
o p f P c l
5 to 10 d l i o o i a s
n p m rt C r L c e
p o h
a m t o e t l t
y C n x n sr n g n s
n c E n o a C o h te o na of a
o a e i T i g n i i t i o e
i t t i em t sa t r
upto 5 t v i r
i m t a tu c n ae a
c r y e c y as e e D sn
e p i p t i e
o p f Pn c l o
t d l i o o o i a s
o n p m rt C r L c N e
r C p o h
p a m o e l t
E C C r
a n e a f
t o t o
a i m a
D t u D e
c s n
e n o
t o N
o
r C
p

a
t
a
D
Note: Source:
Founder respondents only
Note: Source:
Founder respondents only
There’s a clear split in opinion within the industry on the question of whether
There's a clear split in opinion within the industry on the question of whether European regulators act with the
European regulators act with the interests of tech startups in mind. Founders,
interests of tech startups in mind. Founders, most notably, are inclined to be sceptical of the motivations of
There's a clear split in opinion within the industry on the question of whether European regulators act with the
most notably, are inclined to be sceptical of the motivations of European
European regulators, especially those from the DACH region
interests of tech startups in mind. Founders, most notably, are inclined to be sceptical of the motivations of
There's a clear split in opinion within the industry on the question of whether European regulators act with the
regulators, especially those from the DACH region.
European regulators, especially those from the DACH region
interests of tech startups in mind. Founders, most notably, are inclined to be sceptical of the motivations of
European regulators, especially those from the DACH region
Where relevant, do you believe that European Central Europe & Baltics 47% 53%
regulators act with the interests of tech DATASET: SUBREGION
Where relevant, do you believe that European Central Europe & Baltics 47% 53%
startups in mind? DACH 35% 65%
regulators act with the interests of tech Central Europe & Baltics 53%
Where relevant, do you believe that European 47%
startups in mind? DACH 35% 65%
DATASET: SUBREGION
regulators act with the interests of tech Eastern Europe 54% 46%
DATASET: SUBREGION DACH 65%
startups in mind? 35%
LEGEND
Eastern Europe 54% 46%
Yes
LEGEND
DATASET: SUBREGION France & Benelux 53% 47%
No Eastern Europe 54% 46%
Yes France & Benelux 53% 47%
LEGEND
No Nordics 47% 53%
Yes France & Benelux 53% 47%
No Nordics 47% 53%
Southern Europe 45% 55%
Nordics 47% 53%
Southern Europe 45% 55%
UK & Ireland 43% 57%
Southern Europe 45% 55%
UK & Ireland 43% 57%
0 20 40 60 80 100
UK & Ireland 43% % of respondents 57%
0 20 40 60 80 100
% of respondents
There's a clear split in opinion within the industry on the question of whether European regulators act with the
0 20 40 60 80 100
Source: % of respondents
interests of tech startups in mind. Founders, most notably, are inclined to be sceptical of the motivations of
Source:
European regulators, especially those from the DACH region
DATASET: OCCUPATION
Source:
Where relevant, do you believe that European Academic/researcher 55% 45%
regulators act with the interests of tech
startups in mind? Angel investor 47% 53%
DATASET: OCCUPATION Employee at a private company that is
not a tech startup/scale-up 46% 54%
LEGEND
Yes Employee at a private tech startup or 47% 53%
scale-up
No
Employee at a publicly listed non-tech 55% 45%
company
Employee at a publicly listed tech 44% 56%
company
Employee in the public sector 59% 41%
Founder 36% 64%
Media/Journalist 57% 43%
Other investor 48% 52%
Policymaker/regulator 73% 27%
Student 60% 40%
Venture capitalist 45% 55%
0 20 40 60 80 100
% of respondents
Source:
&
93 In Partnership with www.thestateofeuropeantech.com

07.1 Embracing Regulation
This willingness to build bridges is important since key stakeholders in the European
tech ecosystem take a majority view that European regulation makes it harder to
This willingness to build bridges is important since key stakeholders in the European tech ecosystem take a
start and scale a technology business in the region.
majority view that European regulation makes it harder to start and scale a technology business in the region
European regulation makes it harder to start
and scale a technology business Founder or startup/scale-up employee
LEGEND
Agree
Neither agree nor disagree
Disagree Venture capitalist
Policymaker or employee in the public
sector
0 20 40 60 80 100
% of respondents
Source:
Opinions on whether startups/scaleups or large established tech companies feels
Unsurprisingly then, Founders also believe they feel more of the regulatory burden in Europe than established tech
the regulatory burden more keenly are split. Both founders of startups/scaleups and
Unsurprisingly then, Founders also believe they feel more of the regulatory burden in Europe than established tech
companies. Of course, if you ask those that work at public tech companies, they are more likely to say the
those who work in public tech companies both tend to think that they shoulder most
companies. Of course, if you ask those that work at public tech companies, they are more likely to say the
opposite.
Unsurprisingly then, Founders also believe they feel more of the regulatory burden in Europe than established tech
of the regulatory burden.
opposite.
companies. Of course, if you ask those that work at public tech companies, they are more likely to say the
Do you think the regulatory burden in Europe Academic/researcher
opposite.
is more felt by tech startups or established Academic/researcher
Do you think the regulatory burden in Europe DATASET: OCCUPATION
tech companies? Angel investor
is more felt by tech startups or established
tech companies? Angel investor
Do you think the regulatory burden in Europe Academic/researcher
DATASET: OCCUPATION Employee at a private company that is
is more felt by tech startups or established
DATASET: OCCUPATION not a tech startup/scale-up
LEGEND Employee at a private company that is
tech companies? Angel investor
not a tech startup/scale-up
LEGEND Employee at a private tech startup or
Established tech companies
DATASET: OCCUPATION scale-up
Established tech companies Employee at a private tech startup or
No difference Employee at a private company that is
scale-up
not a tech startup/scale-up
LEGEND Employee at a publicly listed non-tech
No difference
Tech startups company
Employee at a publicly listed non-tech
Established tech companies Employee at a private tech startup or
Tech startups company
scale-up
No difference Employee at a publicly listed tech
company
Employee at a publicly listed tech
Tech startups Employee at a publicly listed non-tech
company
company
Employee in the public sector
Employee at a publicly listed tech
Employee in the public sector
company
Founder
Founder
Employee in the public sector
Media/Journalist
Media/Journalist
Founder
Other investor
Other investor
Media/Journalist
Policymaker/regulator
Policymaker/regulator
Other investor
Student
Student
Policymaker/regulator
Venture capitalist
Venture capitalist
Student
0 20 40 60 80 100
% of respondents
Venture capitalist 0 20 40 60 80 100
% of respondents
0 20 40 60 80 100
Unsurprisingly then, Founders also believe they feel more of the regulatory burden in Europe than established tech
Source: % of respondents
Source:
companies. Of course, if you ask those that work at public tech companies, they are more likely to say the
opposite.
DATASET: SUBREGIONS
Source:
Do you think the regulatory burden in Europe Central Europe & Baltics
is more felt by tech startups or established
tech companies? DACH
DATASET: SUBREGIONS
Eastern Europe
LEGEND
Established tech companies France & Benelux
No difference
Tech startups Nordics
Southern Europe
UK & Ireland
0 20 40 60 80 100
% of respondents
Source:
&
94 In Partnership with www.thestateofeuropeantech.com

07.1 Embracing Regulation
A clear majority of the European tech GDPR
ecosystem believes GDPR has been good
for European consumers of all respondents agree that GDPR
% has been a good thing for European
60 consumers, including 54% of European
founders that are in agreement.
The European tech industry’s sentiment around the impact of GDPR is more balanced
than might be expected. Founders are more likely to agree it’s had a negative impact on
The European tech industry's sentiment around the impact of GDPR is more balanced than might be expected.
The European tech industry's sentiment around the impact of GDPR is more balanced than might be expected.
Founders are more likely to agree it's had a negative impact on their company than disagree, but not by a large
their company than disagree, but not by a large margin. Counter-intuitively, perhaps,
The European tech industry's sentiment around the impact of GDPR is more balanced than might be expected.
Founders are more likely to agree it's had a negative impact on their company than disagree, but not by a large
margin. Counter-intuitively, perhaps, founders of larger companies (100+ employees) are more likely to agree it's
founders of larger companies (100+ employees) are more likely to agree it’s had a
Founders are more likely to agree it's had a negative impact on their company than disagree, but not by a large
margin. Counter-intuitively, perhaps, founders of larger companies (100+ employees) are more likely to agree it's
had a negative impact than founders of smaller tech companies
margin. Counter-intuitively, perhaps, founders of larger companies (100+ employees) are more likely to agree it's
negative impact than founders of smaller tech companies.
had a negative impact than founders of smaller tech companies
had a negative impact than founders of smaller tech companies
GDPR has had a negative impact on my DATASET: ALL RESPONDENTS
GDPR has had a negative impact on my
company
GDPR has had a negative impact on my
company
DATASET: ALL RESPONDENTS
company All respondents
DATASET: ALL RESPONDENTS All respondents
DATASET: ALL RESPONDENTS
LEGEND All respondents
LEGEND
Agree
LEGEND
Agree
Neither agree nor disagree
Agree 0 10 20 30 40 50 60 70 80 90 100
Neither agree nor disagree
Disagree 0 10 20 30 40 50 60 70 80 90 100
Neither agree nor disagree
The European tech industry's sentiment around the impact of GDPR is more balanced than might be expected.
0 10 20 30 40 50 60 70 80 90 100
Disagree % of respondents
Disagree
Founders are more likely to agree it's had a negative impact on their company than disagree, but not by a large
% of respondents
% of respondents
margin. Counter-intuitively, perhaps, founders of larger companies (100+ employees) are more likely to agree it's
Source:
had a negative impact than founders of smaller tech companies
DATASET: OCCUPATION
Source:
Source:
GDPR has had a negative impact on my Academic/researcher
company
DATASET: OCCUPATION Angel investor
LEGEND Employee at a private company that is
Note: not a tech startup/scale-up
In company sizes only founders' responses included
Agree
Note:
Note:
In company sizes only founders' responses included Employee at a private tech startup or
In company sizes only founders' responses included
Neither agree nor disagree scale-up
Disagree
Employee at a publicly listed non-tech
company
Employee at a publicly listed tech
company
Employee in the public sector
Founder
Media/Journalist
Other investor
Policymaker/regulator
Student
Venture capitalist
The European tech industry's sentiment around the impact of GDPR is more balanced than might be expected.
0 20 40 60 80 100
Founders are more likely to agree it's had a negative impact on their company than disagree, but not by a large
% of respondents
margin. Counter-intuitively, perhaps, founders of larger companies (100+ employees) are more likely to agree it's
had a negative impact than founders of smaller tech companies
DATASET: COMPANY SIZE BY # OF EMPLOYEES
Note: Source:
In company sizes only founders' responses included
GDPR has had a negative impact on my
company <=10
DATASET: COMPANY SIZE BY # OF EMPLOYEES
LEGEND
Agree
Neither agree nor disagree 11-100
Disagree
100+
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note: Source:
In company sizes only founders' responses included
&
95 In Partnership with www.thestateofeuropeantech.com

07.1 Embracing Regulation
Importantly, however, there is a very strong majority agreement across the board
Importantly, however, there is a very strong majority agreement across the board from all stakeholder types that
from all stakeholder types that GDPR has been a good thing for European consumers.
GDPR has been a good thing for European consumers. One might say, therefore, that any perceived negative
Importantly, however, there is a very strong majority agreement across the board from all stakeholder types that
One might say, therefore, that any perceived negative impact for companies is a
impact for companies is a justiïable cost of scaling more ethically
GDPR has been a good thing for European consumers. One might say, therefore, that any perceived negative
justifiable cost of scaling more ethically.
Importantly, however, there is a very strong majority agreement across the board from all stakeholder types that
impact for companies is a justiïable cost of scaling more ethically
GDPR has been a good thing for European consumers. One might say, therefore, that any perceived negative
GDPR has been a good thing for European
impact for companies is a justiïable cost of scaling more ethically
consumers DATASET: ALL RESPONDENTS
GDPR has been a good thing for European
DATASET: ALL RESPONDENTS
consumers
GDPR has been a good thing for European
DATASET: ALL RESPONDENTS
LEGEND
consumers
Agree
LEGEND
DATASET: ALL RESPONDENTS
Neither agree nor disagree All respondents
Agree
LEGEND
Disagree All respondents
Neither agree nor disagree
Agree
Disagree
Neither agree nor disagree All respondents
Disagree
0 10 20 30 40 50 60 70 80 90 100
% of respondents
0 10 20 30 40 50 60 70 80 90 100
% of respondents
0 10 20 30 40 50 60 70 80 90 100
Importantly, however, there is a very strong majority agreement across the board from all stakeholder types that
Source: % of respondents
GDPR has been a good thing for European consumers. One might say, therefore, that any perceived negative
Source:
impact for companies is a justiïable cost of scaling more ethically
DATASET: SUBREGIONS
Source:
GDPR has been a good thing for European Central Europe & Baltics
consumers
DATASET: SUBREGIONS DACH
LEGEND Eastern Europe
Agree
Neither agree nor disagree France & Benelux
Disagree
Nordics
Southern Europe
UK & Ireland
0 20 40 60 80 100
Importantly, however, there is a very strong majority agreement across the board from all stakeholder types that
% of respondents
GDPR has been a good thing for European consumers. One might say, therefore, that any perceived negative
impact for companies is a justiïable cost of scaling more ethically
DATASET: OCCUPATION
Source:
GDPR has been a good thing for European Academic/researcher
consumers
DATASET: OCCUPATION Angel investor
LEGEND Employee at a private company that is
Agree not a tech startup/scale-up
Neither agree nor disagree Employee at a private tech startup or
scale-up
Disagree
Employee at a publicly listed non-tech
company
Employee at a publicly listed tech
company
Employee in the public sector
Founder
Media/Journalist
Other investor
Policymaker/regulator
Student
Venture capitalist
0 20 40 60 80 100
% of respondents
Source:
&
96 In Partnership with www.thestateofeuropeantech.com

Evolving Tech Policy in Europe
The sentiment on the general direction of travel of European regulation around technology is also balanced
Europe hasn’t made up its mind about whether European regulation is going in the
amongst founders and investors. Though 23% of European founders and 22% of European VCs believe that the
right direction. Founders and VCs are more likely to think it isn’t, whilst those in the
direction regulation has taken in the past year has been negative, this is countered by the 35% and 37%,
public sector or in policymaking roles are more favourable.
respectively, of each group that take the opposite view.
The direction of travel of European
regulation around technology is positive for Founder or startup/scale-up employee
the European tech ecosystem
LEGEND
Agree
Neither agree nor disagree Venture capitalist
Disagree
Policymaker or employee in the public
sector
0 20 40 60 80 100
% of respondents
Source:
The policy agenda in Europe around technology has been
The policy agenda in Europe around technology has been
The policy agenda in Europe around technology has been dominated by data
dominated by data privacy and content copyright for the past
dominated by data privacy and content copyright for the past
privacy and content copyright for the past two years.
two years.
two years.
Number of mentions of key tech-related Data privacy/ GDPR 121 86
Number of mentions of key tech-related Data privacy/ GDPR 121 86
issues in European Parliament legislative
issues in European Parliament legislative
documents by topic per year
documents by topic per year Content & copyright 29 37
Content & copyright 29 37
LEGEND
LEGEND Artificial Intelligence 15 24
FY 2017 Artificial Intelligence 15 24
FY 2017
2018* 2018* Brexit 17 11
Brexit 17 11
Fintech 15 11
Fintech 15 11
Digital health 7
Digital health 7
Blockchain/cryptocurrencies 6
Blockchain/cryptocurrencies 6
Autonomous vehicles 3
Autonomous vehicles 3
Drones 8
Drones 8
CRISPR, Genetic editing 1
CRISPR, Genetic editing 1
Digital tax 2
Digital tax 2
Quantum computing 1
Quantum computing 1
0 50 100 150 200
0 50 100 150 200
Number of legislative documents containing issue keywords
Number of legislative documents containing issue keywords
Note:
This data looks at the number of citations of keywords related
Note:
to a number of selected technology-related issues in European Source:
This data looks at the number of citations of keywords related
Parliament legislation, where legislation equals documentation
to a number of selected technology-related issues in European Source:
related to the ongoing process of law making, actual bills, etc
Parliament legislation, where legislation equals documentation
related to the ongoing process of law making, actual bills, etc
&
97 In Partnership with www.thestateofeuropeantech.com

07.2 Evolving Tech Policy in Europe
In the UK, in particular, it’s revealing to look at the relative level of discussion of key
tech issues in UK government legislative documents, activities and press releases.
In the UK, in particular, it's revealing to look at the relative level of discussion of key tech issues in UK government
Brexit, unsurprisingly, has swamped everything else.
legislative documents, activities and press releases. Brexit, unsurprisingly, has swamped everything else.
# of mentions of key tech-related issues in Brexit
UK government legislative documents by
topic per year Data privacy/GDPR
LEGEND Artificial Intelligence
Activities
Press Releases Blockchain/cryptocurrencies
Legislation
Drones
Fintech
Autonomous vehicles
Content & copyright
Digital health
Quantum computing
CRISPR, Genetic editing
Digital tax
0 250 500 750 1,000 1,250 1,500 1,750
Number of legislative documents containing issue keywords
Note:
This data looks at the number of citations of keywords related
to a number of selected technology-related issues in UK Source:
government legislation, activities and press releases.
&
98 In Partnership with www.thestateofeuropeantech.com
Photo: Esa Pekka Mattila

07.2 Evolving Tech Policy in Europe
There’s a clear growth in focus on Artificial Intelligence in European Parliament
There's a clear growth in focus on Artiïcial Intelligence in European Parliament legislative documents, but in other
legislative documents, but in other key emerging technology fields, such
key emerging technology ïelds, such as quantum computing or autonomous vehicles, there is more 'activity' and
There's a clear growth in focus on Artiïcial Intelligence in European Parliament legislative documents, but in other
as quantum computing or autonomous vehicles, there is more ‘activity’ and
'commentary' than actual legislation
key emerging technology ïelds, such as quantum computing or autonomous vehicles, there is more 'activity' and
There's a clear growth in focus on Artiïcial Intelligence in European Parliament legislative documents, but in other
‘commentary’ than actual legislation.
'commentary' than actual legislation
key emerging technology ïelds, such as quantum computing or autonomous vehicles, there is more 'activity' and
'commentary' than actual legislation
# of mentions of key tech-related issues in Artificial Intelligence 15 24
European Parliament legislation, activities DATASET: LEGISLATION
# of mentions of key tech-related issues in Artificial Intelligence 15 24
and press releases by topic per year
European Parliament legislation, activities Drones 8 3
# of mentions of key tech-related issues in Artificial Intelligence 15 24
DATASET: LEGISLATION
and press releases by topic per year
European Parliament legislation, activities Drones 8 3
DATASET: LEGISLATION
LEGEND Blockchain/cryptocurrencies 4 6
and press releases by topic per year
2017 Drones 8 3
LEGEND Blockchain/cryptocurrencies 4 6
DATASET: LEGISLATION
2018
2017 Autonomous vehicles 3 3
LEGEND Blockchain/cryptocurrencies 4 6
2018 Autonomous vehicles 3 3
2017
2018 CRISPR & Genetic editing 1
Autonomous vehicles 3 3
CRISPR & Genetic editing 1
Quantum computing 1
CRISPR & Genetic editing 1
Quantum computing 1
0 10 20 30 40
Quantum computing 1 # of legislative documents containing issue keywords
0 10 20 30 40
Note: # of legislative documents containing issue keywords
There's a clear growth in focus on Artiïcial Intelligence in European Parliament legislative documents, but in other
Legislation = the ongoing process of lawmaking, actual bills, 0 10 20 30 40
Note:
procedures. Activities = the questions and speeches made by
key emerging technology ïelds, such as quantum computing or autonomous vehicles, there is more 'activity' and
Source: # of legislative documents containing issue keywords
Legislation = the ongoing process of lawmaking, actual bills,
the elected legislators. Press Releases = the commentary and
'commentary' than actual legislation
procedures. Activities = the questions and speeches made by
response from the various agencies and other moving parts of Source:
Note:
the elected legislators. Press Releases = the commentary and
government.
Legislation = the ongoing process of lawmaking, actual bills, DATASET: ACTIVITIES
response from the various agencies and other moving parts of
procedures. Activities = the questions and speeches made by Source:
government.
the elected legislators. Press Releases = the commentary and
# of mentions of key tech-related issues in Blockchain/cryptocurrencies 13 50
response from the various agencies and other moving parts of
government.
European Parliament legislation, activities
and press releases by topic per year
Drones 27 36
DATASET: ACTIVITIES
LEGEND Artificial Intelligence 15 37
2017
2018 Autonomous vehicles 5 8
There's a clear growth in focus on Artiïcial Intelligence in European Parliament legislative documents, but in other
CRISPR & Genetic editing 1
key emerging technology ïelds, such as quantum computing or autonomous vehicles, there is more 'activity' and
'commentary' than actual legislation
Quantum computing 1
There's a clear growth in focus on Artiïcial Intelligence in European Parliament legislative documents, but in other
# of mentions of key tech-related issues in 0 10 20 30 40 50 60 70
Artificial Intelligence 15 24
# of legislative documents containing issue keywords
key emerging technology ïelds, such as quantum computing or autonomous vehicles, there is more 'activity' and
European Parliament legislation, activities
and press releases by topic per year
'commentary' than actual legislation
Note: Drones 8 3
Legislation = the ongoing process of lawmaking, actual bills, DATASET: PRESS RELEASES
DATASET: LEGISLATION
procedures. Activities = the questions and speeches made by Source:
the elected legislators. Press Releases = the commentary and
LEGEND Blockchain/cryptocurrencies 4 6
response from the various agencies and other moving parts of
# of mentions of key tech-related issues in Artificial Intelligence 24 75
government.
2017
European Parliament legislation, activities
2018
and press releases by topic per year Autonomous vehicles 3 3
Blockchain/cryptocurrencies 18 35
DATASET: PRESS RELEASES
LEGEND CRISPR & Genetic editing 1 21 19
Drones
2017
2018 Quantum computing 1 10 6
Autonomous vehicles
0 10 20 30 40
Quantum computing 3 # of legislative documents containing issue keywords
Note:
Legislation = the ongoing process of lawmaking, actual bills, CRISPR & Genetic editing 0
procedures. Activities = the questions and speeches made by Source:
the elected legislators. Press Releases = the commentary and
response from the various agencies and other moving parts of 0 20 40 60 80 100
government. # of legislative documents containing issue keywords
Note:
Legislation = the ongoing process of lawmaking, actual bills,
procedures. Activities = the questions and speeches made by Source:
the elected legislators. Press Releases = the commentary and
response from the various agencies and other moving parts of
government.
We urgently need Europe’s “ As Spotify, iZettle and Skype have shown, success breeds more
success. Europe is flourishing in terms of access to later stage
governments to form long- capital, and an ecosystem required to support startups on their
term strategies around journey. Fintech, healthtech and social impact are just some verticals
showing huge promise. But what worries me is that Europe hasn’t
AI, while stepping up gotten its act together on AI – our companies risk getting crushed by
the giants in US and China. We urgently need Europe’s governments
investment into education to form long-term strategies around AI, while stepping up investment
and basic research. The into education and basic research. The future is at stake.”
future is at stake. Jacob de Geer
iZettle
99 In Partnership with & www.thestateofeuropeantech.com

07.2 Evolving Tech Policy in Europe
The legislative process in key European countries has been dominated by data
privacy, content copyright and Brexit with much less discussion related to other
The legislative process in key European countries has been dominated by data privacy, content copyright and
key new technology fields. In Germany, in particular, the issues of data privacy and
Brexit with much less discussion related to other key new technology ïelds. In Germany, in particular, the issues of
content copyright have been top of mind for German policymakers.
data privacy and content copyright have been top of mind for German policymakers.
Number of mentions of key tech-related Data privacy/GDPR
issues in selected countries' oícial
government legislative documents by topic Content & copyright
per year
Brexit
LEGEND
France
Artificial Intelligence
Germany
UK Drones
Digital tax
Blockchain/cryptocurrencies
Quantum computing
Autonomous vehicles
CRISPR, Genetic editing
Digital health
Fintech
0 10 20 30 40 50 60
Number of legislative documents containing issue keywords
Note:
This data looks at the number of citations of keywords related
to a number of selected technology-related issues in French, Source:
German and UK government legislation, activities and press
releases.
European governments are stepping up their focus on AI with
many countries having launched initiatives
European governments are stepping up List of government AI initiatives in Europe
their focus on AI with many countries having Initiative Launched/Announced
launched initiatives. List of government AI initiatives in Europe Finland AI Strategy Dec 2017
Denmark Strategy for Digital Growth Jan 2018
Italy AI at the Service of Citizens Mar 2018
France AI Strategy Mar 2018
European Union Communication on AI Apr 2018
UK AI Sector Deal Apr 2018
Sweden AI Strategy May 2018
Germany AI Strategy Nov 2018
Source:
In the coming years, “ Regulation is failing to keep pace with new technologies and
business models, and the risk of overbearing regulation suffocating
further balkanisation of smaller companies remains very real. In the coming years, further
regulatory regimes could balkanisation of regulatory regimes could create opportunities for
some European companies, but at the cost of limiting the overall
create opportunities growth of the sector.”
for some European Chris Yiu
companies, but at the Tony Blair Institute for Global Change
cost of limiting the overall
growth of the sector.
100 In Partnership with & www.thestateofeuropeantech.com

What Founders Want
The larger the size of a company’s employee base, the more that founders care about
The larger the size of a company's employee base, the more that founders care about regulatory changes related to
regulatory changes related to hiring flexibility and stock options.
hiring ðexibility and stock options
In your opinion, what is one regulatory
change that would have a materially positive <=10
impact on the prospects of your business?
LEGEND
Tax
Regulatory Support for Startups 11-100
Data Protection or Access
Hiring Flexibility
Capital Support
Banking, Payment 100+
EU Harmonization
Stock Option
Deregulation 0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note:
Founder respondents only. Based on respondents that gave Source:
explicit responses only
The goal for policymakers should be to use the tools at their disposal
to tackle fragmentation and reduce the cost and bureaucracy
associated with starting and scaling businesses in Europe.
“ The goal for policymakers should be to use the tools at their disposal
to tackle fragmentation and reduce the cost and bureaucracy
associated with starting and scaling businesses in Europe. However,
as we look towards the next EU Commission and new legislative
proposals which may follow, regulators need to better understand
the impact of the changes they propose and find new ways to engage
with founders at very early stages, many of whom are understandably
Linda Griffin unfamiliar with the world of policy. Equally European tech companies
King (of all sizes) need to engage in policy discussions if they are interested
in long-term growth.”
101 In Partnership with & www.thestateofeuropeantech.com

Investors &
Investment
Following the Money 2018 set a new record for total capital invested in the
European tech ecosystem, as European VC’s returns are
now highly competitive against private equity in the U.S.
The region’s investor base has also evolved as high net-
worth individuals and family offices participate, even as
pension funds have not stepped up their commitments and
are failing to democratise European tech’s returns.
ARTICLES
08.1 European Capital Flows
08.2 Capital Flows by Geography and Industry
08.3 Expanding European Investor Base
08.4 Bridging the Funding Gap
08.5 Diversifying the Institutional Investor Base
In Partnership with & www.thestateofeuropeantech.com

European Capital Flows
The European tech ecosystem will once again see a record level of capital investment in
2018. Total investment is projected to hit $23 billion, comfortably exceeding the $19.6 billion
The European tech ecosystem will once again see a record level of capital investment in 2018. Total investment is
invested in 2017 and now 4.4x up compared to the levels of investment from 2013.
projected to hit $23B, comfortably exceeding the $19.6B invested in 2017 and now 4.4x up compared to the levels of
investment from 2013.
Capital invested ($B) and # of deals per year 25.0 3,350.0 3,500.0
3,220.0 23.0
LEGEND
20.0 19.6
Capital invested ($B) 3,000.0
# of deals ) 2,728.0
B
$
(
2,609.0 #
d 14.6
e 15.0 o
t 14.0 f
s
e d
v e
n 2,500.0 a
i
l
l s
a
t
pi
a 10.0
C 8.6
5.2 2,000.0
5.0
0.0 1,500.0
Note: 2013 2014 2015 2016 2017 2018
All Dealroom.co data excludes the following: biotech,
secondary transactions, debt, lending capital, grants. Please
also note the data excludes Israel. 2018 based on 9M to
September 2018 and projection for Q4 2018 based on Q3 2018
For additional context on annual capital investment into the European tech
ecosystem, it is important to understand there is a material trend in effect
that means many rounds are only captured with a significant delay (see note).
For additional context on annual capital investment into the European tech ecosystem, it is important to
This ‘reporting lag’ means that the final totals are not known until a significant
understand there is a material trend in effect that means that many rounds are only captured with a signi cant
time period has elapsed after the end of the year in question. As such, we have
delay (see note). This 'reporting lag' means that the nal totals are not known until a signi cant time period has
indicatively adjusted the annual totals to account for this reporting lag to enable a
elapsed after the end of the year in question. As such, we have indicatively adjusted the annual totals to account
like-for-like comparison of overall investment trends at the European level.
for this reporting lag to enable a like-for-like comparison of overall investment trends at the European level.
30
Capital invested ($B), annual, 2013-2018,
adjusted for reporting lag effect
25 $3B
LEGEND )
B
$
(
20 $1B
Capital invested ($) r
a
e
y

Adjusted for reporting lag r
pe

d 15
e
t $B
s $B
e
v
n
i

l $23B
a
t 10
pi $20B
a
C $B
$14B $15B
5 $B $9B
$5B
Note: 0
2013 2014 2015 2016 2017 2018
The reporting lag is the difference between the date of a
round’s disclosure and the reported date of a round’s
occurrence, resulting in a material % of rounds only being
added with a long delay. This is estimated at 97% for 2017 and
90% for 2018.
103 In Partnership with & www.thestateofeuropeantech.com

08.1 European Capital Flows
For additional context on the annual number of deals in the European tech ecosystem, it is
important to understand that there is a material trend in effect that means that many rounds
For additional context on the annual number of deals in the European tech ecosystem, it is important to
are only captured with a significant delay (see note). This ‘reporting lag’ means that the final
understand there is a material trend in effect that means many rounds are only captured with a signi cant delay
totals are not known until a significant time period has elapsed after the end of the year in
(see note). This 'reporting lag' means that the nal totals are not known until a signi cant time period has elapsed
question. As such, we have indicatively adjusted the annual totals to account for this reporting
after the end of the year in question. As such, we have indicatively adjusted the annual totals to account for this
lag to enable a like-for-like comparison of overall investment trends at the European level.
reporting lag to enable a like-for-like comparison of overall investment trends at the European level.
Number of rounds, annual, 2013-2018,
adjusted for reporting lag effect 358 1,343
LEGEND
# of deals
Adjusted for reporting lag
3,350 3,220
2,728 2,609
2,174
1,712
Note:
The reporting lag is the difference between the date of a 2013 2014 2015 2016 2017 2018
round’s disclosure and the reported date of a round’s
occurrence, resulting in a material % of rounds only being
added with a long delay. This is estimated at 90% for 2017 and
70% for 2018.
In 2013, $1 billion of capital invested per quarter in Europe was the norm, but as the
ecosystem has evolved that bar has consistently been raised higher. Europe has
In 2013, $1B of capital invested per quarter in Europe was the norm, but as the ecosystem has evolved that bar has
now seen more than $3 billion invested per quarter for 15 consecutive quarters and
consistently been raised higher. Europe has now seen more than $3B invested per quarter for 15 consecutive
even $5 billion per quarter for the past 6 straight quarters.
quarters and even $5B per quarter for the past 6 straight quarters.
Capital invested ($B) and # of deals per 1,215.0
1,159.0 6.4 1,200.0
quarter 6.0
1,063.0 1,073.0 5.4
5.1 5.3 5.0 5.1
LEGEND )
B 1,000.0
$
(
Capital invested ($B) 4.2 900.0 #
d 4.0
e 4.0 o
t 4.0 3.8 f
# of deals s
e d
v 3.4 3.4 e
n 3.3 a
i
3.2 l
l 759.0 800.0 s
a 2.9
t
pi 2.5
a
C 646.0 2.2 638.0
2.0 2.0
1.6 1.7
1.2 1.2 600.0
1.1
0.0 400.0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
Q Q Q Q Q Q Q Q Q Q Q Q Q Q
Q Q Q Q Q Q Q Q Q
3 4 5 6 7 7 8
1 3 3 3 1 4 4 4 1 5 5 5 1 6 6 6 1 7 1 7 1 8 8
0 1 1 1 0 1 1 1 0 1 1 1 0 1 1 1 0 1 0 1 0 1 1
2 0 0 0 2 0 0 0 2 0 0 0 2 0 0 0 2 0 2 0 2 0 0
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Of course, the exact quarterly investment amounts per quarter are subject to ups and
downs so it is helpful to look at trailing 12-month totals to get a sense for the ‘smoothed’
Of course, the exact quarterly investment amounts per quarter are subject to ups and downs so it is helpful to look
long-term investment trends in the region. On this basis, the overall trajectory of the
at trailing 12-month totals to get a sense for the 'smoothed' long-term investment trends in the region. On this
European tech ecosystem since late 2013 is very clear.
basis, the overall trajectory of the European tech ecosystem since late 2013 is very clear.
25.0
Trailing 12-month capital invested ($B) and # 4,576.0
4,445.0 22.022.2
of deals by quarter 4,224.0 20.7 4,500.0
20.0 19.6
LEGEND 3,925.0 18.0 3,930.0
) 4,000.0
B 15.9
$
Capital invested ($B) (
14.7 14.6 14.7 #
d 15.0 14.0 14.3 14.1 3,496.0
e o
t 13.1 f
# of deals s
e 3,500.0 d
v 11.9 e
n a
i
l
l s
a 10.2
t 10.0
pi
a 8.3 8.6
C 7.1 3,000.0
5.2 5.8
5.0 2,500.0
0.0 2,000.0
4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
Q Q Q Q Q Q Q Q Q Q Q Q
Q Q Q Q Q Q Q Q
4 5 6 7 7 8
3 1 4 4 4 1 5 5 5 1 6 6 6 1 7 1 7 1 8 8
1 0 1 1 1 0 1 1 1 0 1 1 1 0 1 0 1 0 1 1
0 2 0 0 0 2 0 0 0 2 0 0 0 2 0 2 0 2 0 0
2 2 2 2 2 2 2 2 2 2 2 2 2 2
104 In Partnership with & www.thestateofeuropeantech.com

08.1 European Capital Flows
Sentiment within the European tech ecosystem around the capital raising environment
is broadly positive. 72% of European founders and 84% of European investors believe
Sentiment within the European tech ecosystem around the capital raising environment is broadly positive. 72% of
that it has either stayed the same or has become easier to raise VC in Europe in the past
European founders and 84% of European investors believe that it has either stayed the same or has become easier
12 months. This is very similar to responses from 2017’s survey, where the equivalent
to raise VC in Europe in the past 12 months. This is very similar to responses from 2017's survey, where the
responses were 73% of founders and 83% of VCs.
equivalent responses were 73% of founders and 83% of VCs.
In your opinion, is it easier or harder to raise
venture capital in Europe than it was 12
months ago?
LEGEND
Easier to raise capital Founders
The capital environment remains unchanged
Harder to raise capital
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Note:
Founder respondents only.
There are interesting perception gaps between founders and investors at the sub-regional
level. The generally high levels of optimism among investors about the changing state of
the capital raising environment in Europe over the past 12 months stand in contrast to a
DACH region shows the largest gap between founders and
more mixed view from founders in the UK, DACH and Eastern Europe.
investors in how they perceive the fundraising environment
In your opinion, is it easier or harder to raise
venture capital in Europe than it was 12
months ago?
LEGEND
Founders, Easier to raise capital
Investors, Easier to raise capital
Founders, The capital environment remains
unchanged
Investors, The capital environment remains
unchanged
Founders, Harder to raise capital
Investors, Harder to raise capital
FoundersInvestors FoundersInvestors Founders Founders Founders FoundersInvestors FoundersInvestors
Central Europe DACH Eastern Europe France & Nordics Southern UK & Ireland
& Baltics Benelux Europe
Founders remain upbeat about the environment for RAISING CAPITAL IN EUROPE
raising capital in Europe
of European founders believe the capital
% environment has remain unchanged over
71 the past 12 months, or become easier
2018 has again set a new record for total capital CAPITAL INVESTMENT IN EUROPE
invested in the European tech ecosystem
Projected total capital investment in
$ B European tech in 2018, up 4.3x since 2013
23
105 In Partnership with & www.thestateofeuropeantech.com

08.1 European Capital Flows
Europe has seen a 7x increase in the number of large rounds of $50M+, growing to 70
Only the smallest rounds have seen a slight decrease in both capital invested and number of deals, which indicates
rounds in 2018 from just 10 in 2013.
that round sizes are increasing
Capital invested ($M) and # of deals by round DATASET: CAPITAL INVESTED
size 10,000
LEGEND 8,868
Round size $0-2M 7,549
Round size $2-5M s 7,500
l
a
e
Round size $5-10M d

f
o

# 5,544
Round size $10-20M
/

)
M
Round size $20-50M $
(
5,000 4,606
d
e 4,154
Round size $50M+ t
s 3,781
e
v
n
i
3,193
l
a 2,930 2,930
t 2,579
pi
a 2,292
C 2,500 1,898 1,803 2,103 2,054
1,491 1,430
1,151 1,144
660 834
0
2013 2014 2015 2016 2017 2018
Only the smallest rounds have seen a slight decrease in both capital invested and number of deals, which indicates
that round sizes are increasing
DATASET: # OF DEALS
2,500
Capital invested ($M) and # of deals by round 2,208
size
DATASET: # OF DEALS 2,000 1,890 1,922
s
l
a
LEGEND e
d

f 1,540
o
1,430
Round size $0-2M #
1,500
/

) 1,267
Round size $2-5M M
$
(

d
e
Round size $5-10M t
s
e
v1,000
Round size $10-20M n
i

l
a
Round size $20-50M t
pi 602 599 632
a
Round size $50M+ C
500 389 320
232 300 251 301
186 113 143
74 73 42 31
0
2013 2014 2015 2016 2017 2018
Note:
2018 based on 9M to September 2018 and projection for Q4
Note:
2018 based on Q3 2018
2018 annualised based on data to September 2018.
106 In Partnership with &
www.thestateofeuropeantech.com www.thestateofeuropeantech.com
Photo: Sami Heiskanen

Capital Flows by Geography
and Industry
On a cumulative basis since 2013, the UK has attracted $26 billion in total capital
investments, just under 2x as much as Germany, which ranks second with $13.6 billion.
On a cumulative basis since 2013, the UK has attracted $26B in total capital investments, just under 2x as much as
Germany that ranks second with $13.6B. Those two countries, together with France, account for almost 60% of
Those two countries, together with France, account for almost 60% of total capital
total capital invested in Europe since the start of 2013.
invested in Europe since the start of 2013.
Capital invested ($M) by country, cumulative DATASET: TOP 10 COUNTRIES
(2013 - 9M 2018) United Kingdom $25,976M
LEGEND Germany $13,588M
Cumulative capital invested ($M) 2013 - 9M 2018 France $11,302M
Sweden $5,683M
Spain $3,818M
Netherlands $2,952M
Switzerland $2,463M
Russia $2,263M
Ireland $1,741M
Finland $1,534M
On a cumulative basis since 2013, the UK has attracted $26B in total capital investments, just under 2x as much as
0 5,000 10,000 15,000 20,000 25,000
Germany that ranks second with $13.6B. Those two countries, together with France, account for almost 60% of
total capital invested in Europe since the start of 2013. Capital invested ($M)
DATASET: COUNTRY 11-20
Capital invested ($M) by country, cumulative
(2013 - 9M 2018) Denmark $1,158M
DATASET: COUNTRIES 11-20 Belgium $857M
LEGEND Italy $772M
Cumulative capital invested ($M) 2013 - 9M 2018 Austria $748M
Luxembourg $734M
Norway $711M
Portugal $585M
Poland $472M
On a cumulative basis since 2013, the UK has attracted $26B in total capital investments, just under 2x as much as
Iceland $417M
Germany that ranks second with $13.6B. Those two countries, together with France, account for almost 60% of
Estonia $358M
total capital invested in Europe since the start of 2013.
0 200 400 600 800 1,000 1,200
Capital invested ($M)
Capital invested ($M) by country, cumulative
(2013 - 9M 2018) DATASET: THE REST
DATASET: THE REST
LEGEND Turkey $300M
Cumulative capital invested ($M) 2013 - 9M 2018 Cyprus $276M
Greece $248M
Malta $160M
Lithuania $125M
Romania $98M
Czech Republic $94M
Bulgaria $83M
Ukraine $56M
Latvia $44M
Slovenia $27M
Slovakia $12M
Serbia $5M
Albania $3M
0 50 100 150 200 250 300
Capital invested ($M)
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08.2 Capital flows by geography and industry
The UK, France and Germany dominate stories about European investment levels
given the multibillion-dollar scale of capital investments into these countries, but
digging beneath the surface, there is an important trend emerging whereby many
other European countries are now hitting their stride and are also on trajectories to
consistently surpass $1 billion+ in annual capital investment.
The UK, France and Germany dominate stories about European investmTehnet U leKv,e Flrsa gnicveen a tnhde G merumltai-nbyil dlioonm sincaatlee o sftories about European investment levels given the multi-billion scale of
capital investments into these countries, but digging beneath the surfaccaep,i ttahle irnev iess atmn iemnpts iornttaon tt threesend c eomunetrrgieinsg, but digging beneath the surface, there is an important trend emerging
whereby many other European countries are now hitting their stride anwdh aelsreob oyn m traanjeyc ottohreier Es tuor copoenasnis cteonutnlytries are now hitting their stride and also on trajectories to consistently
surpass $1B+ in annual capital investment. surpass $1B+ in annual capital investment.
Capital invested ($M) DATASET: UNITED KINGDOM DATASET: GERMANY
by country per year
Capital invested ($M) by country per year 8,000 Capital invested ($M) by country per year
$7,404M $7,168M $4,036M
DATASET: UNITED KINGDOM DATASET: GERMANY 4,000
LEGEND LEGEND
United Kingdom 6,000 Germany
) )3,000 $2,990M
M M $2,821M
$ $
( (
$4,861M
d d
e e
t $4,374M t
s s
e e
v v
n n
i 4,000 i

l l
a a2,000 $1,878M
t t $1,728M
pi pi
a a
C $2,637M C
2,000 1,000 $930M
$1,437M
The UK, France and Germany dominate stories about European investmTehnet U leKv,e Flrsa gnicveen a tnhde G merumltai-nbyil dlioonm sincaatlee o sftories about European investment levels given the multi-billion scale of
0 0
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
capital investments into these countries, but digging beneath the surfaccaep,i ttahle irnev iess atmn iemnpts iornttaon tt threesend c eomunetrrgieinsg, but digging beneath the surface, there is an important trend emerging
Note: Note:
whereby many other European countries are now hitting their stride anwdh aelsreob oyn m traanjeyc ottohreier Es tuor copoenasnis cteonutnlytries are now hitting their stride and also on trajectories to consistently
2018 based on 9M to September 2018 and projection for Q4 2017 Source: 2018 based on 9M to September 2018 and projection for Q4 2017 Source:
based on Q3 2018. based on Q3 2018.
surpass $1B+ in annual capital investment. surpass $1B+ in annual capital investment.
DATASET: FRANCE DATASET: SWEDEN
Capital invested ($M) by country per year 4,000 Capital invested ($M) by country per year
$3,774M 1,500 $1,501M
DATASET: FRANCE DATASET: SWEDEN
LEGEND LEGEND $1,232M
France ) 3,000 Sweden ) $1,124M
M M
$ $2,579M $
( (
$2,501M $987M
d d 1,000
e e
t t
s s
e e
v v
n n
i i
2,000
l l
a a
t $1,688M t
pi pi $638M
Note: a a
2018 based on 9M to September C C
2018 and projection for Q4 2018 500
1,000 $941M $396M
based on Q3 2018 $619M
0 0
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Note: Note:
2018 based on 9M to September 2018 and projection for Q4 2017 Source: 2018 based on 9M to September 2018 and projection for Q4 2017 Source:
based on Q3 2018. based on Q3 2018.
Italy, Norway and Switzerland have seen the significant expansion of deal volume in 2018,
as investment activity in these relatively less mature countries continues to grow. The
overall top 5 countries in Europe by total number of deals in 2018 remains the same as in
2017 with the UK, followed by France, Germany, Sweden and the Netherlands.
Italy, Norway and Switzerland have seen the signiïcant expansion of deItaall vy,o Nluomrwe iany 2 a0n1d8 S, awsit iznevrelasntmd henatv ae scteivienty t ihne signiïcant expansion of deal volume in 2018, as investment activity in
these relatively less mature countries continues to grow. The overall totph 5ese co ruenlatrtiievse ilyn le Esus mropaet buyre t cotoaul nnturmiebs cero onftinues to grow. The overall top 5 countries in Europe by total number of
deals in 2018 remains the same as in 2017 with the UK, followed by Frandceea, Gls iernm 2a0n18y, r Sewmeadines then and sa thme Ne aesth ine 2rla0n17d ws.ith the UK, followed by France, Germany, Sweden and the Netherlands.
# of deals by country DATASET: UNITED KINGDOM DATASET: GERMANY
per year
# of deals by country per year 1,000 # of deals by country per year
895 887 884 500 495
DATASET: UNITED KINGDOM 821 DATASET: GERMANY 453
LEGEND LEGEND 429
750 730
United Kingdom Germany 400 371
613
s s
l l
a a 297
e e300 278
d d

f 500 f
o o

# #
200
250
100
0 0
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Italy, Norway and Switzerland have seen the signiïcant expansion of deItaall vy,o Nluomrwe iany 2 a0n1d8 S, awsit iznevrelasntmd henatv ae scteivienty t ihne signiïcant expansion of deal volume in 2018, as investment activity in
Note: Note:
these relatively less mature countries continues to grow. The overall totph 5ese co ruenlatrtiievse ilyn le Esus mropaet buyre t cotoaul nnturmiebs cero onftinues to grow. The overall top 5 countries in Europe by total number of
2018 based on 9M to September 2018 and projection for Q4 2018 Source: 2018 based on 9M to September 2018 and projection for Q4 2018 Source:
based on Q3 2018. based on Q3 2018.
deals in 2018 remains the same as in 2017 with the UK, followed by Frandceea, Gls iernm 2a0n18y, r Sewmeadines then and sa thme Ne aesth ine 2rla0n17d ws.ith the UK, followed by France, Germany, Sweden and the Netherlands.
DATASET: FRANCE DATASET: SWEDEN
# of deals by country per year # of deals by country per year
666 686 500 502 499
DATASET: FRANCE DATASET: SWEDEN
LEGEND 600 LEGEND
France Sweden 535 400
s s
l l
a a
e e300
d 400 d
273 270
f 362 f
o o

# #
Note: 275 200
2018 based on 9M to September 171
2018 and projection for Q4 2018 200 199
based on Q3 2018 100 102
0 0
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Note: Note:
2018 based on 9M to September 2018 and projection for Q4 2018 Source: 2018 based on 9M to September 2018 and projection for Q4 2018 Source:
based on Q3 2018. based on Q3 2018.
108 In Partnership with & www.thestateofeuropeantech.com

08.2 Capital flows by geography and industry
The diversification of European tech is reflected at the city level too, as exemplified
The diversi�cation of European tech is re�ected at the city level too, as exempli�ed by increased capital invested
by increased capital invested into a new generation of cities that are not typically
into a new generation of cities that are not typically considered among Europe's most active tech hubs, such as
considered among Europe’s most active tech hubs, such as Hamburg, Milan and Oslo.
Hamburg, Milan and Oslo.
London 892 1,622 3,011 3,065 5,654 4,426
Top 20 European hubs by capital invested Paris 333 600 1,065 1,332 1,686 2,607
($M) Berlin 592 1,165 2,270 948 1,824 2,221
Barcelona 70 262 334 258 568 1,044
Stockholm 374 522 916 1,044 1,016 793
Hamburg 18 82 134 247 191 761
Madrid 67 109 116 263 307 441
Dublin 98 128 99 332 309 420
Oxford 9 32 135 201 53 372
Cambridge 20 49 94 74 116 352
Zurich 70 55 53 55 110 321
Helsinki 184 79 83 127 108 290
Moscow 130 295 72 127 608 286
Copenhagen 22 72 135 91 64 262
Munich 111 109 167 170 253 251
Tallinn 24 18 53 16 6 249
Amsterdam 218 556 277 144 354 240
Oslo 8 12 57 119 121 207
Milan 11 36 44 131 63 148
Lausanne 17 4 31 102 28 138
2013 2014 2015 2016 2017 2018
Note: Source:
2018 annualised based on data to September 2018.
This trend is also reflected in data showing deal volume by city, where the rise
in investment activities in new generation tech hubs like Milan and Oslo has
This trend is also re�ected in data showing deal volume by city, where the rise in investment activities in new
been significant in 2018.
generation tech hubs like Milan and Oslo has been signi�cant in 2018.
London 414 581 641 608 598 489
# of deals in Top 20 European hubs (ranked Paris 126 174 223 352 332 288
by capital invested in 2018) Berlin 184 238 261 271 210 149
Barcelona 47 66 91 93 105 71
Stockholm 46 102 157 305 312 209
Hamburg 12 16 30 39 20 19
Madrid 65 53 69 60 56 49
Dublin 38 36 41 95 49 47
Oxford 3 8 11 10 11 24
Cambridge 9 18 20 24 19 27
Zurich 14 29 31 35 42 52
Helsinki 34 48 57 67 67 51
Moscow 45 38 28 65 71 67
Copenhagen 27 38 47 39 56 44
Munich 40 43 47 49 47 48
Tallinn 13 19 17 20 8 12
Amsterdam 71 77 123 115 97 84
Oslo 9 10 14 50 45 72
Milan 23 34 38 47 35 64
Lausanne 4 4 14 23 7 12
2013 2014 2015 2016 2017 2018
Note: Source:
2018 annualised based on data to September 2018.
109 In Partnership with & www.thestateofeuropeantech.com

08.2 Capital flows by geography and industry
On average, approximately one-third of all investments into European tech companies by
On average, approximately one-third of all investments into European tech companies by European VCs involve a
European VCs involve a cross-border transaction, where an investor from one country
cross-border transaction, where an investor from one country invests into a company from another European
invests into a company from another European company. The larger the investment round,
company. The larger the investment round, the greater the share of total investment activity that happens in this
the greater the share of total investment activity that happens in this way.
way.
Share of investments made by European VCs y
b
42%
into international (non-domestic) companies e
d 40
ma
by round size 37%
s
t
n
me 33%
t
LEGEND s 31% 31%
e
v
n 30
i
s
2013 - 2015 ) C 27%
c
i V
t
s n
2016 - 9M 2018 mea
o pe
d o 21% 21%
- r 20%
n u20 19%
o E
n 17%
(

l
a
n
o 13%
i
t
a
n
r 10
e
t
n
i

f
o

%
0
<$2M $2M-$5M $5M-$10M $10M-$20M $20M-$50M $50M+
Source:
Fintech remained the single largest vertical for CAPITAL INVESTMENT BY INDUSTRY
capital investment in Europe in 2018
projected total capital investment into
$ B European fintech companies in 2018
5
110 In Partnership with & www.thestateofeuropeantech.com
Photo: Jussi Hellsten

08.2 Capital flows by geography and industry
There is a high level of industry diversity in terms of where capital is being invested in the
European tech ecosystem at scale. The dominant industries in 2018 are fintech, software
There is a high level of industry diversity in terms of where capital is being invested in the European tech
for enterprise applications, digital health and transportation, all of which are on track to be
ecosystem at scale. The dominant industries in 2018 are ntech, software for enterprise applications, digital health
in excess of $2.5 billion in total capital invested in 2018. Beyond those four industries, there
and transportation, all of which are on track for in excess of $2.5B in total capital invested in 2018. Beyond those
are a further four industries that will all surpass $1billion in capital invested this year.
four industries, there are a further ve industries that will all surpass $1B in capital invested this year.
Capital invested ($M) by industry DATASET: CAPITAL INVESTED $2B+ IN 2018
5,000 $4,839M
LEGEND
Fintech $4,222M
Enterprise software 4,000
Health ) $3,571M
M $3,235M
$
(
Transportation
d
e
t3,000
s $2,622M
e
v $2,424M
n
i

l
a $2,054M
t
pi
a2,000
C $1,520M $1,612M
$1,414M $1,363M
$936M $1,011M
1,000 $822M
$552M
There is a high level of industry diversity in terms of where capital is being invested in the European tech
$465M
$172M
ecosystem at scale. The dominant industries in 2018 are ntech, software for enterprise applications, digital health
0
and transportation, all of which are on track for in excess of $2.5B in total capital invested in 2018. Beyond those
2013 2014 2015 2016 2017 2018
four industries, there are a further ve industries that will all surpass $1B in capital invested this year.
LEGEND DATASET: CAPITAL INVESTED $1B-$2B IN 2018
Home $1,514M
Media 1,500
Energy $1,297M
1,250 $1,192M
Marketing $1,093M $1,120M
) $1,062M $1,015M
Fashion M $989M
$ $955M
(
1,000
d $883M
e $867M
t
s $801M
e
v
n
i $701M

l 750
a
t
pi $571M
a $554M
C
500 $431M
$345M $346M
$266M
$204M
There is a high level of industry diversity in terms of where capital is being invested in the European tech
250
ecosystem at scale. The dominant industries in 2018 are ntech, software for enterprise applications, digital health
0
and transportation, all of which are on track for in excess of $2.5B in total capital invested in 2018. Beyond those
2013 2014 2015 2016 2017 2018
four industries, there are a further ve industries that will all surpass $1B in capital invested this year.
LEGEND DATASET: CAPITAL INVESTED $500M-$1B IN 2018
Travel $1,570M
Food
Internet of Things 1,500 $1,390M
Education
Gaming )
M $1,027M
$
(
$975M
Real estate d
e 1,000
t $873M
s
e
v $795M
n $755M
i
$728M
l $691M
a
t $662M
pi
a
C $516M $516M
500 $437M $397M $409M
$300M $347M
$251M $262M
$195M
There is a high level of industry diversity in terms of where capital is being invested in the European tech
$181M
ecosystem at scale. The dominant industries in 2018 are ntech, software for enterprise applications, digital health
$17M
and transportation, all of which are on track for in excess of $2.5B in total capital invested in 2018. Beyond those
0
2013 2014 2015 2016 2017 2018
four industries, there are a further ve industries that will all surpass $1B in capital invested this year.
LEGEND DATASET: CAPITAL INVESTED $250M-$500M IN 2018
Music 1,000 $943M
Robotics
HR & Recruitment
Construction 750 $687M
) $638M
Semiconductors M $633M
$
(

d
Security e
t
s
e $484M $493M
Telecom v
n
i
500
l $432M
a
t $389M $387M
pi $365M $352M
a
C $292M $312M
$272M $275M $250M
250 $197M $178M $189M
$124M $100M
$84M $64M
$11M $22M $34M
0
2013 2014 2015 2016 2017 2018
Note:
2018 based on 9M to September 2018 and projection for
Q4 2018 based on Q3 2018.
&
111 In Partnership with www.thestateofeuropeantech.com