European Tech Funding Drops by Half to $45 Billion, but AI Shines

Venture capital investment into Europe's tech industry is expected to decline by 45% in 2023, dropping to $45 billion from $82 billion in 2022, according to a report by venture capital firm Atomico. However, the artificial intelligence sector has seen continued mega funding rounds, with AI companies attracting significant investment. Europe has shown resilience compared to the US and China, with investment levels growing by 19% since 2020. Climate tech and AI were standout sectors, with funding in the carbon and energy space accounting for 27% of all capital invested in European tech. The IPO market in Europe remains closed, but there is a healthy pipeline of companies looking to tap the public markets.