The 2017 "State of European Tech Report," predicts that Europe is the strongest it has ever been and will see record investments this year. The report, now in its third year, prepared by Atomico in collaboration with Slush and supported by Orrick and Silicon Valley Bank, is the latest evidence of Europe's growing influence in the global tech ecosystem. 

Unveiled at last week's annual Slush conference in Helsinki, Finland, the report outlines key trends based on a data-driven analysis conducted by leading venture-capital firm Atomico that provides concrete data about the opportunities and challenges across the European tech ecosystem. Some highlights that point to the growing influence of the European technology industry are:

• A healthy landscape built on strong foundations - It's another record year for Europe with just over $19 billion invested, up from $14.4 billion in 2016. It is also a record year for $50-million-plus rounds, which are on track for more than 50 in 2017, which is significantly higher than the previous all-time high of 43 in 2015.
• Deep tech continues to thrive in Europe - Europe is on track for a record $3.5 billion to be invested in deep tech, a 40% increase on 2016. Europe is leading in the explosion of activity in the crypto/blockchain economy. There are more blockchain development projects and more teams using the new ICO model to raise capital in Europe than in any other region worldwide.
• Regulation is emerging as an opportunity for competitive advantage - There is broad agreement across Europe's tech community that regulatory changes to incentivize the development of AI, blockchain and autonomous vehicles should be prioritized.
• Europe is taking a uniquely collaborative approach to working with traditional industry - In 2017, there were 637 funding rounds involving at least one corporate investor, a 600% increase versus 2012; and about 20% of all venture funding in Europe now comes from corporates.
• A 'Battle Royale' for tech talent - Professional developer numbers have increased across the continent to 5.5 million. The UK remains the number one destination for tech talent migrating into—and within—Europe, but appears to have lost some share to other European destinations such as Germany and France.

"This edition of the State of European Tech Report confirms that Europe has arrived as a power broker in the global technology ecosystem," said Chris Grew, a London-based partner in our Technology Companies Group. "Three takeaways stand out most for us from a legal perspective: the continued strong appetite for investment; the emerging view of Silicon Valley and the U.S. as a target for growth and investment, not just as an exit; and the opportunities for competitive advantage through compliance strategies across the complicated EU market. We hope that European regulators will heed the report's call to action for proactive innovation policies in areas such as drones, autonomous vehicles and cryptocurrencies."

As supporters of this year's report, Orrick is particularly well-positioned to not only provide effective legal solutions but also distinctive market insights behind some of these trends in areas such as regulation, cryptocurrency and AI.  Our insight comes from our work with more than 1,800 tech companies, as well as the most active funds and corporate venture investors, globally. Please contact us if you would like to discuss the report's findings in more detail.

  Click here to access the report where you can explore the data online, download sections or the report in its entirity.