The state of the European technology industry in 2017

23/01/2018
Diego Gutiérrez
The state of the European technology industry in 2017

The European technology sector is going through a sweet moment, according to 2017 figures in terms of activity and investment volume, with figures that exceed the record levels of the previous year. Check out all these figures and our analysis of the sector's situation.

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The European technology sector is going through a sweet moment, according to 2017 figures in terms of activity and investment volume, with figures that exceed the record levels of the previous year. Check out all these figures and our analysis of the sector's situation.

Investment activity in the European technology industry in 2017

2017 has undoubtedly been an important year for the European technology industry, with a large number of deals that have transformed and strengthened the sector:

 

Variable201320142015
Invoicing8.52911.19016.634
Ebitda1.688
1.3302.402
Net Financial Debt2.0753.070
4.380
Investment595163160
Growth13,93%31,20%48,65%
Profitability19,80%11,89%14,44%
Solvency1,662,842,34

 

Number of non-domestic investments in Europe by European VCs

Geographically, the European technology sector continues to diversify, with a boost in international investment activity. Over the past two years, European Venture Capital firms have made around 1,000 investments per year in countries outside their home market:

Source: "The State of European Tech 2017", ATOMICO.

European Venture Capital cross-border activity is very high: one in three investments of European VCs invest in companies outside their home markets. This shows the confidence of these firms in the European market, investing in companies in markets that are not as well known as their own, but which are attractive due to their growth potential.

 

2017, another record year for European technology investment

Total capital invested in European technology in 2017 will comfortably exceed the record levels of 2016, continuing a trend of growth in investment activity that confirms the industry's strong performance and investor confidence in the technology sector:

Source: "The State of European Tech 2017", ATOMICO.

In addition, there has been an increase in capital invested and in the number of deals for all round sizes, except for rounds below $2M, which decreased slightly in 2017. We are also seeing the first signs of a stabilisation in the number of early stage financing rounds, with a 12% reduction in the number of $0-2M deals year on year, which has also become a trend globally.

 

Capital invested ($) per capita per country

While it is clear that Europe's technology industry is going through a positive phase, there is still a long way to go. European countries still lag behind countries such as the United States and Israel in terms of capital invested per capita:

Source: "The State of European Tech 2017", ATOMICO.

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