European Tech Startups Are Outperforming U.S. Companies in One Important Way
Tech startups in Europe are breaking funding records, but discrimination remains a problem.
PHOTO CREDIT: Getty Images
Europe's tech scene is having a moment--albeit tempered by a stark lack of diversity.
In the first nine months of the year, 69 European tech startups went public, compared to only 28 companies in the U.S., according to a new report by the London-based venture capital firm Atomico. As if that weren't enough, these companies have also seen their share prices soar 222 percent compared to a meek 42 percent uptick for its American counterparts. Tech startups in the region have also raised a record $23 billion in venture capital funding in 2018, up from $5 billion five years ago, according to the Atomico's State of European Tech Report.
"It's been another record year for investment in European tech and the sector is powering growth in Europe's stagnant economy," reads the report, which was released Tuesday at the Slush conference in Helsinki.
Yet not everyone is benefiting from the boom. Women entrepreneurs in particular are being left out. According to the report, all-male founding teams received 93 percent of all venture capital dollars, compared to two percent for all-female teams and five percent for teams with both male and female co-founders. What's more, nearly half of all surveyed women, 46 percent, said they have experienced discrimination in the industry.
In an effort to help combat these challenges, Atomico partnered with Diversity VC, a nonprofit organization. The companies released a "practical and hands-on" toolkit to foster diversity within tech startups.