VC funding is down in Europe as US investors take a cautious approach. Last year, European startups raised $10.6 billion in funding, but this was down a huge 66% year-on-year, according to Crunchbase data.

It’s a stark statistic, but it should be looked at in context: Global funding was down 53% year-on-year too, and Europe’s tech centres and hubs are showing positive growth.

Dealroom’s recent report, “European tech ascendancy––Unlocking a continentʼs innovation potential” has found that the European tech ecosystem has grown in the last decade to a combined value of approximately $2.5 trillion.

The report also found that Europe is now in position to not only challenge the US’ tech dominance, but it also has the potential to overtake it within the next 20 years.

Europe now attracts 20% of global VC funding, up from about 5% two decades ago. At seed stage, the bloc attracts a third of all global seed funding, and particularly areas of expertise have been nurtured here too.

Existing expertise in Fintech, SaaS and Health are being joined by the emerging sectors of climate tech and AI.

And despite recent economic factors including rising inflation, and massive tech layoffs, European tech hubs are still growing, with a number pulling out in front.

According to EU Startups, excluding London, the top five EU startup hubs this year are Paris, Berlin, Amsterdam, Stockholm and Barcelona. Discover the key facts for each, along with job opportunities, below.

1. Paris
The city of light has a new claim to tech fame. Home to numerous unicorns which include DoctoLib and Vestiaire Collective, it’s the location for many startup hubs and incubators such as Station F, the largest startup campus in the world, and Le Cargo.

These, along with good government support delivered through various initiatives, tax incentives, and programs aimed at fostering innovation and entrepreneurship, are helping to build a robust support system for entrepreneurs. AI, blockchain, medtech and biotech are all areas of particular strength in the region.

Want to work in Paris? Browse a range of tech jobs in France’s capital city here.

2. Berlin
A lower cost of living paired with a deep talent base has made Berlin one of the world’s most attractive tech hubs. A top choice for startups, the city beats London in this regard thanks to its startup infrastructure, talent base and vibrant community.

Berlin has also been ranked as one of the world’s top five best locations for Fintech, with unicorn startups N26, Trade Republic and WeFox all currently located in the city, raising $850 million in 2022 For those who would like to delve deeper, you can explore some of the roles currently hiring in the city here.

For those looking for a career move in the city, Selux Ltd has an Application Manager IT role currently on offer.

3. Amsterdam
The Python programming language was invented in the Netherlands in 1989 and this is a business-friendly country which is rated as one of the least bureaucratic in Europe.

Amsterdam is firmly established as one of Europe’s leading tech hubs. Tech leaders located here are software security and media technology company Irdeto, Dutch tech education specialist Bit Academy, online grocery provider Picnic, and quantum computing research centre QuSoft, along with household names TenCent, Cisco, Tata Consultancy Services, and Canon.

International connectivity could hardly be better, and quality of life is ranked among the highest in the world. Furthermore, Amsterdam might just be Europe’s friendliest city for digital nomads.

Software developers are in high demand here. This Senior Software Engineer – Data Application role at Fivetran may appeal to those who want to contribute to the development and planning of the platform roadmap and work across the project lifecycle.

4. Stockholm
While tech professionals may not be attracted to Sweden for its cost of living or tax levels, they will find its health and social care infrastructure excellent.

A social welfare net offers people up to 80% of their previous pay should they become unemployed, which means this is a good place for tech workers to take a risk.

The Finnish Venture Capital Association has rated Sweden as the second biggest European country by investment volume in start-ups and early-stage companies: think disruptive payments provider Klarna, for example.

As a result, Stockholm has earned the title of unicorn factory, responsible for the creation of 35 unicorns, placing it in second place worldwide in terms of unicorns per head of population.

Want a job in Stockholm? Browse available opportunities here.

5. Barcelona
Barcelona is an increasingly important tech hub, attracting workers and investment, as well as the arrival of multinational tech companies such as Microsoft and Google.

Its emergence as a tech hub can be traced back to 2012, according to research from Harvard, when adoption of “smart city” technologies helped to make the city a centre for the young IoT industry.

Elevate your career opportunities today via the Silicon Canals Job Board

5 great European innovation & startup hubs for your next tech job

European tech funding saw a decrease in 2022, but the continent's tech ecosystem has grown to a combined value of approximately $2.5 trillion. Europe now attracts 20% of global VC funding, with areas of expertise including Fintech, SaaS, Health, climate tech, and AI. The top five EU startup hubs excluding London are Paris, Berlin, Amsterdam, Stockholm, and Barcelona.