According to a report from venture capital firm Atomico, the European tech sector lost $400 billion in value this year and saw an 18% decrease in venture capital funding. Public and private tech companies in Europe are now valued at $2. 7 trillion as opposed to $3.1 trillion in late 2021.
The Ukraine conflict, high interest rates, and a talent shortage were a few of the reasons given for the decline.
For instance, the Swedish payments company Klarna Bank AB raised $800 million at a $6. 7 billion valuation, an 85% decrease from its $46 billion price tag for 2021.
This year saw a decrease in the number of new “unicorns” companies valued at $1 billion or more from 105 to just 31 in 2022.