European tech funding is expected to experience a slight decline in 2024, with an estimated US$45 billion in venture capital being raised. This marks a fall from last year's US$47 billion and a huge decline from the US$101 billion raised in 2021. According to the Venture Capital firm, Atomico’s State of European Tech report, these signs continue to point to more tough times ahead.
Over the past decade, Europe witnessed more than 350 companies valued at US$1 billion. The IPO market has still been low lately. Until now, in the year 2024, only 11 initial public offerings (IPOs) have been completed which is the lowest IPO number in the last few years.
However, Atomico further mentions that several European companies are getting ready to go public. Among them are UK-based fintech companies like Revolut and Zopa, and also the ride-hailing firm, Bolt, from Estonia.
The report counts more than 100 European companies now nearing the scale at which they must become public. More than a third of them have already appointed a chief financial officer, a crucial step on the way to a successful IPO. Notably, Swedish payment company Klarna recently filed paperwork to go public in the United States. This points to slightly brighter prospects for listings in the future.
The European tech IPOs have remained sparse in the past couple of years. However, increasing interest in listings can be the first harbinger of a possible turnaround of the market in the near term. Emerging tech companies will receive a key opportunity to access capital through the new window as venture funding stabilises in the region.