The 2024 State of European Tech report by Atomico shows that European tech startup funding is projected to reach $45 billion in 2024, a slight decrease from $47 billion in 2023.
Despite slow funding activity, the report highlights a positive trend in the initial public offering (IPO) landscape. Over 100 European companies have the prospect of going public via IPO in the near future, including UK-based fintechs Revolut and Zopa and the Estonian ride-hailing company Bolt.
However, the number of IPOs has declined over the past four years, with only 11 in 2024—the lowest in a decade. Additionally, the overall funding level remains below the 2021 peak, when $100 billion in funding was raised.
To recap, while European tech funding has stabilized in 2024, it still falls significantly short of the $100 billion funding raised in 2021. The emerging IPO pipeline shows a positive outlook, but the tech sector must overcome ongoing challenges to sustain growth, the report notes.