LONDON, May 24, 2024
/PRNewswire/ -- Titans of Tech: Unrivalled era of A.I. led
innovation for European Tech - No more excuses.
GP
Bullhound is proud to announce the release of its Titans of Tech
2024 report. For the tenth year in a row, GP Bullhound has released
its annual Titans of Tech report, highlighting and analysing the
growth trends in Europe's tech
ecosystem. This comprehensive analysis underscores the resilience
and growth of Europe's tech
sector, setting the stage for a new era of innovation and
investment.
Key takeaways from our report include:
- The funding frenzy is over, but the new normal is very
healthy: Funding levels have normalised, averaging €15Bn
per quarter over the last year, which is ~50% higher than
2019.
- The value of the ecosystem is growing despite the
failures: 14 new unicorns were created in the last 12
months. Europe and Israel now have 323 unicorns, up from 311 a
year ago and 283 the year before. The ecosystem's total valuation
has grown to $1.2Tr, an ~11x increase
in billion-dollar companies and a ~14x increase in aggregate
valuation since our first report in 2014.
- Megarounds are fewer but larger and still accessible:
Access to capital rounds exceeding $50
million has tightened, but investors remain interested in
supporting innovators. The deal count dropped 68% over the last two
years due to a focus on profitability and conservative planning.
Only 17% of European unicorns raised capital in 2023, as 93% had
already raised funds during the 2021-2022 bull market.
- Software innovation continues, shaping the way we live and
work: Despite funding challenges, technological
developments, especially in artificial intelligence, continue to
drive automation and cost savings. European AI companies received
over €11Bn in funding in the last year, with 36% of new unicorns
being AI/ML businesses.
- Category leaders and geographies: This year, the
UK and France lead the startup
arena with three unicorns each. The UK's unicorns are valued at
$3.4Bn, with significant
contributions from AI leaders Synthesia and
Builder.ai. France's trio
reaches a collective valuation of $7Bn, highlighted by innovators like Mistral AI.
Germany, Israel, and the
Netherlands each added two unicorns, while Sweden and Italy added one unicorn each.
- Europe's most promising
startups: GP Bullhound has analysed
more than 100 European startups for scale, velocity, and
sentiment, and ranked the top 50 companies with the most potential
to become one-billion-dollar
companies. The top 10 include Agicap,
Brevo, Typeform, Homa,
AMBOSS, Akeneo, Form3, Flo
Health, Aidoc, and
ConnexOne.
Manish Madhvani, Managing
Partner at GP Bullhound, said: "After ten years of issuing our
Titans of Tech report, we have witnessed the highs and lows of the
European tech ecosystem. A year ago, the situation was less
encouraging for the fundraising environment, with macro uncertainty
and with businesses more focused on layoffs than on growth and
innovation.
Today, against the backdrop of negative headlines, we have
cemented the building blocks for the next wave of innovation.
Funding levels have stabilised, and are amazingly 50% higher than
pre bull market levels.
With Europe's maturing base of
engineering talent and the world's fascination in its potential
productivity gains, artificial intelligence offers a unique
opportunity to create global leaders in record time. There is no
shortage of funding for the best entrepreneurs and companies, as
evidenced by the record $220m seed
round for Paris based H announced
this week. What was noticeable about the round was the range of the
investor syndicate : from strategics such as Amazon, Samsung and UI
Path, household names such as Bernard
Arnault, Eric Schmidt and
Xavier Niel, and leading
VC's.Looking ahead, we expect the next few years to represent an
era of unprecedented innovation in the European ecosystem.
Innovation is flowing, vast amounts of capital are available for
the strong and the talent pool is expanding. No more excuses
Europe!"
Expert interviews
What does it take to build a
billion-dollar company? What are the critical success factors for
European tech? How to remain resilient in a challenging market and
benefit from economic downturns? This year's report features expert
views from leading founders and CEOs, including Synthesia,
Quantexa, SEON, Flo Health, Zappi and CoverManager.
Download full report:
www.gpbullhound.com/articles/titans-of-tech-2024
Enquiries
For enquiries, please contact:
press@gpbullhound.com
About GP Bullhound
GP Bullhound is a leading
technology advisory and investment firm, providing transaction
advice and capital to the world's best entrepreneurs and founders.
Founded in 1999 in London and
Menlo Park, the firm today has 12
offices spanning Europe, the US
and Asia. For more information,
please visit www.gpbullhound.com.
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