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 & 11 In Partnership with www.thestateofeuropeantech.com