Europe is expected to hit $13.6 billion in tech investments in 2016, up from $12.6 billion in 2015, as newer technology hubs crop up outside traditional capital centres, according to a report produced by venture capital firm Atomico released at the Slush startup conference in Helsinki this week.
The report suggests Munich, Zurich, Lisbon, Madrid, and Copenhagen will be ones to watch over the coming years. Paris is starting to seriously challenge London and Berlin in terms of the number of VC-financed deals and deal volume.
London remains the largest tech hub in Europe with the UK as a whole the strongest region for FinTech, AdTech, Marketing, Enterprise Software, Media and Data Analytics (in terms of number of deals 2011-2016, source: dealroom.co). Access to talent and a quality ecosystem are the most important factors driving founder mobility and the UK is the number 1 destination for all tech talent migrating from both other European and non-European countries.
The UK’s tech ecosystem is underpinned by world class computer science institutions with Oxford, Imperial College London, UCL and Edinburgh ranked 3rd, 7th, 12th and 16th in The Times world university ranking for computer science.
Also, according to StackOverflow, there are more professional developers in Europe than in the US - 4.7m in Europe vs 4.1m in the US – and London has a bigger developer population than New York.
So, a successful year for European Tech. The level of optimism is strong with 46% of founders, investors and tech employees being more optimistic than 12 months ago. Despite the Brexit vote the result is slightly higher in the UK at 48% and the vast majority of UK founders (82%) say that Brexit has had no effect on their company.