European tech funding is expected to decline for the third consecutive year, with projections of raising $45 billion by the end of 2024, slightly lower than the previous year"s $47 billion.
There are signs of stabilization in the European tech sector, with improving valuations and decreasing interest rates.
Despite facing challenges such as regulation, bureaucracy, and limited access to capital, European startups have raised an impressive $426 billion from 2015 to 2024.
One critical issue is the limited exposure of European pension funds to venture capital, with only 0.01% of their assets allocated to local venture capital funds.
To address this, reforms are being proposed in various European countries, including consolidating pension pots into larger funds.
These reforms aim to increase investment in domestic assets and unlock capital for tech startups.
Despite the challenges, there is optimism about the future of the European tech landscape, with predictions that the entire ecosystem could be valued at $8 trillion by 2034.
It is anticipated that Europe will produce its first trillion-dollar tech company within the next decade by improving access to capital, implementing regulatory reforms, and focusing on solving societal and economic challenges.