The past year was characterized by strong contradistinctions: a record dry powder in European funds, mega deals, skyscraping valuations, and unicorn exits, contrasting with an all-time low of first-time financings, a lack of profits, and a narrowing of the VC funnel. Yet, we see that Europe has the potential for global tech leadership: It has robust tech fundamentals and is leading in research and niche technologies. As a consequence, Europe‘s tech ventures attract a record number of global investments, particularly in the later stages. To this day, Europe‘s ecosystem has birthed 200 unicorns. Investors with a good scent for opportunities are orienting towards Europe when looking for „real deals“. These mean capital-efficient, purposeful, resilient companies with well-performing operations in addition to a relevant market share.

Within the coming months we will learn how Covid-19 affects European ventures and the behaviour of Venture Capitalists; how the entire economy will manage the paradigm shift that has already begun. One thing is certain: Future high-tech businesses will have to demonstrate resilience and the ability to adapt quickly with a focus on sustainability, materiality and purpose. A forward-looking Europe well on the way to technological stewardship must relentlessly strengthen the emergence and growth of those new ventures and ensure support from well-equipped and competent venture ecosystems.