European Tech passes the stress test

Atomico delivers the latest report on the state of European Tech. Resilience and growth opportunities are the keywords.

European Tech passes the stress test
Point Flex Test by Tinius Olsen.

The State of European Tech report is a fantastic project. It showcases how the technology industry is essential for the future of Europe. Even more importantly, it shows how overlooked European tech is and that, often, the tech industry only prospers in the USA. More (regulatory) work is needed in Europe to unlock the potential. Kudos to Atomico for the work they are putting into this project.

We do not intend to summarise the report, and we encourage you to head over to and read it yourself.

Slovenia and Croatia are barely mentioned.

Nlaw operates from London, Palo Alto (pst, still a secret, haha 😎), Ljubljana and Zagreb offices. The USA and England get much attention, but Slovenia and Croatia do not. So, we looked into what the report says about these two jurisdictions. Very little is the answer.

Slovenia is ranked 27th in capital invested, outpacing Slovakia, Hungary, Ukraine and BiH. Croatia did not make it to the list. Adjusted for size, Slovenia features 0.5 unicorns per 1M citizens, the same as Croatia, both lagging behind many other smaller countries, such as Estonia with 4.5, Malta with 2, Luxembourg with 1.6, Denmark with 1.4, Cyprus with 1.1, and Lithuania with 0.7.

There are no other relevant mentions of both countries in the report. Slovenia and Croatia enjoyed a lot more spotlight in the last year's report, and their numbers were impressive. To refresh your memory, below is a link to our commentary on the previous edition of the State of European Tech Report.

Startups in the CEE remain strong in 2022
Dealroom, Google for Startups, Atomico and Credo Ventures published a new report on CEE Startups. Key findings show that CEE startups are resilient and the most efficient value creators in Europe.

Slovenian and Croatian entrepreneurs are more successful than it looks.

I can't hide my disappointment after reading this report. I believe Slovenia's and Croatia's poor performance is due to a lack of complete and relevant data in Dealroom databases. We know there were more investments, more activity and more relevant data to report. We should not blame Dealroom but rather both countries for their ignorance of the sector and lack of proper statistical data. Luckily, Silicon Gardens Fund stepped in similarly to Atomico on the European Level and covered the Adriatic region with their excellent State of AdTech Report. The latter helps us reach two relevant findings:

  • there are more tech investments and growth in the region than evident from the State of European Tech Report,
  • due to a hostile regulatory environment in both countries, all successful projects incorporate and keep their HQ in the USA or the UK.

Therefore, if you are interested in the Adriatic region, we recommend reading the State of European and State of Adria Tech reports jointly.

State of Adria Tech goes live
This study examines tech company investments in the Adria region, with a specific focus on those supported by funders from Slovenia, Croatia, or Serbia between 2021 and 2022.