European Tech Poised for Expansion, Says Goldman Sachs
The European technology sector is on a path of significant growth, with an expected rise in public offerings as the number of private, billion-dollar-plus startups (unicorns) in the region climbs. Clif Marriott, co-head of the Technology, Media, and Telecommunications Group in EMEA at Goldman Sachs, shared this optimistic outlook following the firm’s 10th annual Disruptive Technology Symposium in London.
Capital investment is surging, particularly in artificial intelligence (AI) and cybersecurity. “European tech has evolved immensely over the past decade,” stated Marriott.
Since the Disruptive Technology Symposium began in 2016, approximately 550 companies – representing two-thirds of all European unicorns – have presented at the event. Atomico’s 2024 report indicates that over $425 billion has been invested in European tech over the last decade, compared to around $45 billion in the decade prior. The number of technology unicorns has grown from fewer than 20 to roughly 350 during that time.
Marriott predicts a strong year for tech IPOs globally and anticipates the number of tech IPOs will be closer to the pre-pandemic levels. He highlighted the rising number of technology-company mergers and acquisitions, which grew by about 25% in 2024 compared to the previous year. He anticipates a continued growth trend.
“While a number will go public on their own, some of those companies will need to merge or be acquired in order to access the public markets,” Marriott added.
A Maturing Ecosystem
Marriott pointed to the experience of Taavet Hinrikus, co-founder of the fintech company Wise, as indicative of the transformation within the European technology ecosystem. Hinrikus, the first employee of Skype, launched Wise, which became Europe’s inaugural direct listing when it went public in 2021. He then became a founding Partner at Plural, an investment fund focused on European tech startups. Niklas Zennström, CEO of Atomico and Skype founder, recently noted that over 900 new companies have been created by first- and second-order Skype alumni.
“It’s why I feel really enthusiastic around Europe and the tech sector. There are these repeat founders who are continuing to reinvest in the ecosystem,” said Marriott.
AI’s Role and the Future of Tech
At the symposium, participants discussed the future of AI and its potential applications. Investors are exploring opportunities in infrastructure, chipmakers, and applications. Although scrutiny is increasing regarding the return on AI investments, many at the symposium believed the technology is still undervalued. In a poll taken during the event, 62% of respondents said AI is underhyped, compared to 58% in 2024.
“The more you peel back the onion around the capabilities, the use cases, and the efficiencies stemming from AI, the more benefit you see,” Marriott explained.
Additionally, cybersecurity technology is attracting more interest as European governments increase spending on defense, including electronic security. There is growing anticipation for more entrepreneurship in defense technology, which will have implications for defense-tech spending, AI, AI sovereignty, and the global AI innovation race.
“I wouldn’t be surprised to see significantly more spending by companies and governments to increase the pace of innovation in all of those fields within Europe,” Marriott concluded.
