Startups in Europe are performing well. In fact, they are performing much better than their counterparts in the U.S.
Tech IPO’s are increasing in Europe, according to reports by Atomico, a venture capital firm. According to data reported by the London Stock Exchange, about 69 tech companies in Europe have gone public. In the U.S. only 28 companies have gone public.
The share prices of these tech companies have increased in 2018 by 222 percent on an average, in Europe. In the U.S., it has seen an average gain of 42 percent.
Atomico has produced the report on the State of the European Tech, for the fourth consecutive year. The report says that the European startups have a total investment of $23 billion for the year. In the year 2013, only $5 billion had been provided for European startups. The U.S. has allotted $100 billion for their startups for this year.
The Slush tech conference in Finland that has released the report says that investors can get good returns from the tech startups from Europe.
The head of research at Atomico has said that it is an incredible year for the tech sector at Europe. Tom Wehmeier is the head and partner at Atomico who has also authored the report.
The report also states that 17 of these startups have a value of more than $1 billion. Startups like Spotify come under ten of the biggest public listings from Europe. Countries like France, Germany, Spain, and Sweden are also seen to be big tech hubs on the continent.
However, startups in Europe are facing ongoing uncertainty. Brexit vote along with the exit process is seen to impact hiring and raising of funds. It was found that 2 percent of Tech companies that are female-founded in Europe have closed funding rounds in 2013 and it still continues to be 2 percent in 2018.