Atomico, a London investment firm specialized in new technologies, has just published its annual report The State of European Tech, a large meta-study, this being the third edition that takes a look at the European technological sector.
The private equity company has joined many partners to offer a very fine radiography of the sector, where public and private institutional sources rub shoulders with big data and social networks.
According to this study, almost half (or about $1.76 billion) of the funds raised through Initial Coin Offerings (ICOs) was raised by European companies. Europe is particularly well positioned in fundamental technologies, with $3.5 billion invested in high tech companies this year, with a billion more than last year, and does not lack assets in the global competition for digital talent.
The continent has about 5.5 million developers as opposed to 4.4 million in the United States. Germany and the United Kingdom and the hubs of Berlin and London are the heaviest contributors to this legacy, both in terms of the number of developers and attractiveness. Based on the data provided by Stack Overflow, Switzerland has approximately 144,000 professional developers, 20,000 more than in 2016 and is in the European top 3 of blockchain users.
“Europe is traditionally strong in cryptography, with leading researchers from European academic institutes, and industrial hubs based on cryptographic expertise in France, Estonia, Belgium and Switzerland,” said George Danezis from University College London.
“There are more ICO projects from entities based in Europe than in any other region of the globe.”
To write the part of his study devoted to ICOs, Atomico mainly relied on data provided by TokenData. Although 90% of the funds raised via ICOs were in 2017, the figures presented covered all the cryptocurrency fundraisings conducted since 2014.
Interestingly enough, Atomico meta-study observes that the Zug, a 30,000 inhabitants city in Switzerland, hosts many of the startups that were funded in Europe.
Ricky Tan from TokenData said he expects this figure to increase in the following years. In the report, he stated that:
“We see a pattern of geographical diversity between ICO founding teams and also within the teams themselves. If the future of business ideas lies in decentralisation, then decentralised founding teams will be a key aspect of it.”
Blockchain projects winners: UK, Germany and Russia
As mentioned by the report, “Europe is well positioned to play a key role in the ecosystem of crypto-currencies,” and “there has been a sharp increase in the number of European developers involved in cryptocurrencies, especially in projects related to Ethereum.”
According to a Deloitte study, with insights from the GitHub platform, the largest number of blockchain projects is conducted in the United Kingdom, Germany and Russia: out of 8,265 blockchain projects that are currently active in Europe, 1,674 are to be identified in the United Kingdom, 1,307 in Germany and 721 in Russia.
The Deloitte inquiry shows that Europe is the home of the largest number of Bitcoin nodes − 5,221. The second best place is occupied by the United States (3,375) and, then, China, with 622 BTC nodes. The validity of all the cryptocurrencies transactions conducted on the network is to be confirmed by these Bitcoin nodes.
Therefore, if we’re positive enough and Atomico’s study gives us a solid reason to be, we just might see the bright future of some European cities that may take the well-positioned place of Silicon Valley in the tech-world.