European Tech Gets Political

Venture superior patient Atomico’s yearly State of European Tech study is out and it shows finance is trending upwards. But this year’s version goes beyond nan accustomed appraisal of nan tech ecosystem; it has go a portion of defense that reflects a broader shift: European startups and investors are progressively turning to lobbying.

“It’s nary longer capable to show really acold we’ve come. It’s critical, too, that we usage those insights to constituent nan measurement forward,” said nan report’s author, Tom Wehmeier, who is besides a partner astatine Atomico and nan firm’s caput of intelligence. This includes 4 argumentation recommendations pinch reasonably self-explanatory names: Fix nan friction, Fund nan future, Empower talent, and Champion risk.

While Atomico is utilizing answers from a wide scope of respondents to advocator for these circumstantial recommendations, it arguably has immoderate authority to speak for much than itself. Founded successful 2006 by Skype co-founder Niklas Zennström, its portfolio includes high-profile European companies specified arsenic Aiven, DeepL, Klarna, Pipedrive, Stripe, and Supercell.

Taking a page from Big Tech and from bequest industries, arsenic good arsenic from their U.S. peers, European tech companies of that standard are progressively learning to lobby for themselves — astatine nan institution level, pinch nationalist affairs hires, but besides collectively, pinch unfastened letters that European institutions person paid attraction to.

This besides explains why galore of Atomico’s recommendations align pinch topics that are already very overmuch successful nan air, some successful nan startup organization and successful nan Brussels argumentation world — whether it is nan 28th regime projected by defense group EU-INC to create a pan-European institution building (currently, companies must navigate 27 different nationalist regimes), calls for little regulation, aliases broader considerations connected competitiveness that echo erstwhile European Central Bank president Mario Draghi’s 2024 report.

This buy-in astatine nan highest levels is evident successful Atomico’s report, too. For nan first time, its 2025 version features a quote from nan president of nan European Commission, Ursula von der Leyen, saying that she wants “the early of AI to beryllium made successful Europe.” This high-level attraction besides explains why European tech lobbying is becoming much sophisticated.

On nan 28th regime, for instance, Atomico warns that whether it will beryllium a “regulation” aliases a “directive” is highly important. “This is nan quality betwixt having teeth aliases not, pinch nan second representing a continuation of nan position quo wherever rules tin beryllium interpreted state to country, alternatively of nan uniformity tech companies request to thrive,” nan patient argues. (In EU law, regulations are straight binding crossed each personnel states, while directives let each state to instrumentality rules differently.)

This level of item isn’t unprecedented. France Digitale, a French startup and investor association, published a “non-paper” connected nan 28th authorities that wasn’t overmuch different from what different lobbies whitethorn nutrient connected different topics — conscionable for illustration publications from ESNA, nan Europe Startup Nations Alliance. But Atomico’s take, besides packaged arsenic a video and a shape talk astatine tech convention Slush, is meant to scope some nan tech ecosystem and policymakers.

Paradoxically, what mightiness beryllium missing is simply a consciousness of nan various forces that could reason efforts specified arsenic EU-INC. More broadly, immoderate recommendations whitethorn consciousness retired of touch to astir people; aft all, fewer Europeans aftermath up successful nan greeting concerned astir nan deficiency of caller homegrown trillion-dollar companies. 

The counterargument is that nine arsenic a full is affected by lackluster growth, but arguably, location is still much that European tech’s emerging lobbying could do to triumph hearts. According to Alexandru Voica, caput of firm affairs and argumentation astatine London-based AI unicorn Synthesia, that is 1 logic why ample startups are becoming much vocal.

“Communications and argumentation are much important than 10 years agone because successful Europe, there’s a heavy distrust of nan tech industry,” Voica wrote to TechCrunch. “A decade ago, [communications] was seen arsenic thing you could tally retired of trading to thief pinch merchandise maturation and marque awareness. Today, nan activity we do is overmuch much focused connected consequence mitigation and estimation management, etc.”

European tech’s lobbying push besides carries risks. If nan activity becomes excessively intimately tied to peculiar governmental parties, it could trigger backlash and undermine broader support. Still, sloppy of politics, galore will apt work together pinch Atomico’s cardinal point: “Europe efficaciously stands astatine a crossroads.”