The European tech industry has lost more than $400bn (£327bn) in value as dealmaking ground to a halt this year amid ongoing economic uncertainty.
According to a report by London-based Atomico, tech startups across Europe are on track to raise $85bn (£70bn) in funding this year, down $15bn (£12bn) on 2021 levels.
The report said the industry was now now valued at $2.7 trillion (£2.2 trillion) as the region grapples with war in Ukraine and inflationary pressures.
The number of unicorns in the continent also slumped to 31 this year, the lowest level since 2017, and down from over 100 that were created last year as IPOs flourished. Unicorns are tech start-ups valued at more than $1bn (£818m).
Despite the downturn this year, the UK still came out on top, with London remaining the most attractive European hub for capital, with $19.2bn (£15.7bn) of financing. This was followed by Paris, which hit $9.9bn (£8.1bn) this year.
Founder of Tech London Advocates & Global Tech Advocates Russ Shaw said the report shows how tech is “still punching above its weight”.
“There’s been a relative ‘cooling-off’ with megarounds and inflated valuations – but the resilience and maturity of the European tech ecosystem prevails,” he explained.
CEO of the Stratford-based innovation campus Here East Gavin Poole said the findings from Atomico were a “testament to the excellence of the European tech sector and the job creation it is responsible for”.
He also pushed back against direct comparisons to 2021 for investment figures, calling last year a “class of its own”.