Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 7 (Xinhua)-- the European technology industry has lost more than $400 billion in value this year, according to Atomico, a venture capital firm, according to CNBC.

Tuyuan UnsplashCTOnews.com learned that the total market capitalization of all public and private technology companies in Europe has fallen to $2.7 trillion from a peak of $3.1 trillion at the end of 2021, highlighting the difficult situation of the technology industry over the past year, Atomico said in its annual State of Science and Technology in Europe on Wednesday.

"it's been a tough year," said Tom Waymel, a partner at Atomico. "the war between Russia and Ukraine, inflation, interest rate hikes and geopolitical tensions across the continent are the most challenging macroeconomic environment since the global financial crisis."

In Europe, the market capitalization of some companies has fallen off a cliff. Klarna, a Swedish buy-and-pay group, reduced its valuation to $6.7 billion from $45.6 billion. Meanwhile, the share price of Spotify, a music streaming service, has fallen more than 60 per cent in the past year.

Overall venture capital for European start-ups is expected to fall to $85 billion this year, according to the Atomico report, which is based on quantitative data and surveys from 41 countries. This is down 18% from more than $100 billion raised by European start-ups in 2021. However, Atomico said it was the second-largest investment so far in the European technology ecosystem. European technology investment broke records last year as participation from US investors surged to new heights.

This year, this trend has been reversed and foreign investors have tightened sharply. Of the "huge financing" of more than $100m, the number of active US investors is down 22 per cent from last year.

In the first half of 2022, Europe's technology industry was full of firepower, and investment levels were still 4 per cent higher than in the same period in 2021, Atomico said. However, investment began to slow in July and slowed further in August and September. Since then, monthly investment levels have averaged about $3 billion to $5 billion, in line with 2018 levels.

The rate of creation of unicorns has also slowed, with the number of new unicorns worth more than $1 billion in 2022 falling to 31 from 105 last year.

At the same time, IPO almost disappeared. Atomico said there were only three tech IPO with a market capitalization of more than $1 billion in 2022, two of which occurred in Europe. In 2021, there were 86 such IPO.

Europe is not immune to the wave of layoffs in the tech world. European-based companies have cut more than 14000 jobs this year, accounting for 7 per cent of global layoffs, the report said.

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