Investments in European tech companies have fallen this year, after the record year 2021. European tech investment company Atomico reports this based on research.
According to Atomico, this year, 85 billion dollars (81 billion euros) was invested in European tech companies such as start-ups. That was $104 billion a year ago.
According to the researchers, venture capitalists have become more cautious about investing in tech companies due to the weakening economic climate and rising interest rates. However, the figure for 2022 is still the second-highest level ever. Tom Wehmeier, the partner at Atomico, speaks of an excellent result despite all the economic uncertainty.
During the corona pandemic, investments in start-ups increased sharply because many more things were arranged via the internet, such as the delivery of meals, groceries, online shopping and financial transactions.
Due to the challenging economy and weakening growth, many European tech companies are now cutting back on their workforce. According to Atomico, at least 14,000 jobs have disappeared. Nevertheless, the industry remains positive about the future.
A poll shows that 77 percent of tech companies are just as optimistic or even more positive about the future than a year ago. The rest are gloomier.