The TLDR section of this article would include the following key points:
- Funding to European startups reached $52 billion in 2023, down 39% YoY from 2022.
- Europe’s share of the venture capital ecosystem has increased since 2021.
- Late-stage funding in Europe almost halved in 2023, while seed and early-stage funding were each down 30% YoY.
- AI startups in Europe raised $5.8 billion in 2023, driving investment in new technology.
- Europe is better positioned to compete in the tech industry than it was a decade ago, with an established venture ecosystem and strong connections to the US markets.
Europe saw a decline in funding to startups in 2023, with a total of $52 billion invested, down 39% from the previous year. Despite this decrease, Europe’s share of the venture capital ecosystem has increased since 2021. Late-stage funding experienced the deepest cuts, almost halving in 2023, while seed and early-stage funding were each down 30% compared to the previous year. However, AI startups in Europe raised $5.8 billion, contributing to investment in new technology.
Europe is in a better position to compete in the tech industry than it was a decade ago. The region has an established venture ecosystem, deep talent, and strong connections to US markets. Europe has played a leading role in fintech, healthcare, and hardware, and the race around AI technology is just getting started.
