This year European technology investment has fallen short of the record-breaking levels of 2021.

Last year saw total investment in tech across the region hit $100 billion for the first time.

According to Atomico's annual State of European Tech report, it is estimated that there will be just $85 billion in funding.

Despite the 18 per cent year-on-year decline, the figures still represent the largest amount ever invested in the European tech ecosystem outside of 2021.

"In the face of the toughest macroeconomic environment since the global financial crisis, such as minimal decrease is a noteworthy outcome," said the report.

The figures come as European tech companies across both the public and private markets experience a loss of $400 billion in value since the beginning of the year.

This means the total industry value has fallen to $2.7 trillion from its $3.1 trillion peak late last year.

Last year's survey revealed that some of the main macro risks cited as potentially leading to a slowdown in European venture capital activity over the next five years have become defining hallmarks of 2022. These include: interest rates; inflation; geopolitics; and public market sentiment.

As a result of these factors, said the research, 2022 has been "a very different year for the European tech ecosystem."

Share Story: