The state of startup creation in Europe

Zach Meyers, an assistant director at the Centre for European Reform, adds that the bigger decrease in the Dealroom data might be a sign not of the tech industry's weakness, but rather that of Europe's VC sector — as the data only shows startups that got some VC funding.

“European startups tend to rely much more on public funding sources or traditional bank loans,” Meyers says. “Atomico’s [report] also reports that VC and limited partnership funders all have a decreased appetite for investing in Europe. This suggests that we have more and more small startups in Europe, but they are fighting over a pool of increasingly sceptical investors,” he says.