Daily Management Review

European venture industry is pleased with its own growth


12/06/2018


Innovative technological development is pushing traditional corporations towards venture investment. Europe is experiencing a “tech-hype” and expects to press Silicon Valley. This was discussed at the annual Slush start-up conference held in Helsinki.



tanty0
tanty0
As noted in the report “The State of the European Tech” by Atomico investment company (headed by Skype co-founder Niklas Zennström), in 2018 technology investment in Europe reached a record $ 23 billion (an increase of 4.5 times in the last five years). Nowadays, 61 European technology companies cost more than $ 1 billion, 17 overcame this milestone in 2018; three of the ten largest public offerings with venture support also fell on Europe. In addition, despite a small share of the technology sector in gross value added (GVA) - $ 400 billion, or 2.5% of the European GVA - it is growing five times faster than the rest of the economy. Against the background of the European-wide employment growth of 1.1%, the tech sector demonstrates a growth of 4%, with fintech growing the fastest - 7.3% year-on-year. The largest European hubs, such as London and Berlin, continue to attract startups, but new directions show a higher growth rate in the developer community, for which money comes.

Europe expects that pension funds will become the next major player in the venture capital market. In five years they have invested $ 1.7 billion in European venture projects (more than $ 75 billion in private equity funds), even though private investors are still more interested in venture capitalists ($ 5 billion) . The industry is quite positive about the regulatory environment: only 24% of startups surveyed by Atomico said it had a negative impact. Although the majority of respondents called regulation of data traffic and protection of personal information the most sensitive area, 60% agree that the entry into force of the General Data Protection Regulations (GDPR) had a positive impact on consumers. A new regulation-sensitive topic will be artificial intelligence. Attempts to regulate other technologies, such as quantum computing or unmanned vehicles, are limited to “comments” without affecting legislation, the report says.

European venture prefers to compare itself with Silicon Valley: although the share of EU technology companies accounts for only 8% of the total capitalization of the sector (23% for the PRC, 68% for the US, the lion’s share is for American giants over 15–20 years old), among companies created after 2006, the proportion of European increases to 21%.

source: stateofeuropeantech.com






Science & Technology

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

Apple Patents A ‘Foldable Screen’ For Creating Foldable iPhones

Research Shows Air Pollution Causing Birth Defects

Microsoft tells about operating system of the future

Study: Third of US kids wake up at night to check their smartphones

Deepfake AI Technology Used By Researchers To Bring Mona Lisa ‘To Life'

China is developing technology to capture greenhouse gases

IEA: The growth of renewable energy is slowing

Google introduces new smartphone and beta Android Q

World Politics

World & Politics

Iranian Foreign Minister urges other countries to abandon the dollar

The EC recommends starting penalty procedure against Italy

European Breweries To Up Their Brewing Innovation Amid Green Legislations

‘Frequent’ Shootings Causes China To Issue Travel Advisory Against US To Its Citizens

Facebook’s appeal to stop ECJ data case rejected in Irish Supreme Court

Trump: Japan to buy 105 F-35 fighters from the USA

Theresa May to resign on June 7

The Earth Is ‘Not On Track’ To Tackle Global Warming: The U.N. Secretary General