Europe at a “crossroads” as it is called to power its first trillion-euro tech company

Europe is at a “crossroads" and has not realised its full potential, according to leading VC firm Atomico, which has urged the European ecosystem to power its first trillion-euro company.

Atomico’s latest State of European Tech report (its eleventh) paints a positive picture of the European startup scene but says structural gaps mean Europe is potentially leaving trillions of euros in future, unrealised GDP on the table.

Tom Wehmeier, partner and head of intelligence at Atomico, said: “Sovereignty in technology isn't about protectionism, it's about agency and choice – building the capability, confidence and capital to shape the future, while retaining the freedom to act independently and lead on Europe’s own terms.”

In 2025, Europe can point to startups like Lovable, Synthesia, DeepL, ElevenLabs and n8n, which are known on both sides of the Atlantic.

Despite these successes, Europe has not reached its full potential, the report says. It has identified four “key ambitions” which it says will define Europe’s success.

These are (1) to make it easier for founders to build and sell across European borders at scale; (2) make Europe the home of choice for the world’s most ambitious talent; (3) better mobilise Europe’s capital markets; (4) strengthen the risk culture across Europe.

The report provides solutions to the above ambitions.

(1) 

● Test and Learn: To enable founders to build, policy must be crafted like great products — test fast, learn faster, build trust, and scale what works.
● EU Inc: To grow, Europe needs a single pan-European company framework that lets founders incorporate digitally, raise capital, and operate seamlessly across borders in 48 hours.
● Spinouts that Scale: Incentivise inventors to become founders, align spinout terms with global standards, and connect to markets.

(2)

● Reward Risk: Simple, fair and accessible employee ownership, benchmarked to ‘Not Optional’ gold standards.
● Bring the world’s best talent to Europe: Create a single, fast-track visa scheme that makes relocation frictionless and staying obvious.
● Unlock Talent Mobility: Make it easier for founders and operators the freedom to move, work and build within Europe.

(3)

● European Capital Compact: Channel pension, insurance and sovereign assets to fund European innovation, scaling national models like Tibi, WIN and Mansion House across Europe.
● Savings into Growth: Empower Europeans to put their savings to work - productively, responsibly and confidently.
● One Listing, One Capital Market: A single, liquid European market for growth companies — harmonised disclosure, pooled liquidity, and shared analyst coverage to keep IPOs, ownership and value in Europe.

(4)

● Own the Narrative: Change how Europe talks about risk. Invest in narrative to celebrate ambition, embrace failure and success, and reframe entrepreneurship and experimentation positively.
● Procure the Future: One fast, trusted, passportable route for startups to sell to European public and corporate buyers willing to bet on innovation.
● Fail Better: Make it easier to start again. Make insolvency and restructuring easier, faster and fairer so founders can wind up, reset and restart without bureaucracy, stigma, or lost time.

Sarah Guemouri, principal at Atomico, said: "Europe's mission has never been stronger. The talent, ambition, and ideas are all in place. What's missing are the conditions to match that potential: simpler regulation, more patient capital, and public commitment.

"This year’s report is our blueprint for change, because the next decade will decide whether Europe leads the next tech era or lets others define it."