The European IT sector lost $400 billion in value this year and experienced an 18% decrease in venture capital financing according to research from venture capital firm Atomico.
Public and private IT companies in Europe are now valued at a total of $2.7 trillion, down from $3.1 trillion in 2021. The Ukraine conflict, high interest rates, and a skill shortage were a few of the factors given for the decline. Based on data gathered across 41 nations, European venture capital financing decreased to $85 billion for the year.
This year saw a decrease in the number of new “unicorns”—companies valued at $1 billion or more—from 105 to just 31 in 2022. Atomico discovered that experts in the field are still optimistic despite these difficulties. 77% of innovators and investors surveyed on the continent expressed either the same or more optimism for the future of the European IT industry than they did in 2021. This is a brand-new reality, said Tom Wehmeier, partner at Atomico “The financial markets have evolved, and with that, everyone working in the European technology industry needs to alter their expectations.”