Atomico’s annual State of European Tech report reveals increased investment, detailing policy recommendations and reflecting a growing lobbying trend among European tech firms.
The report’s author, Tom Wehmeier, Atomico partner and head of intelligence, stated, “It’s no longer enough to show how far we’ve come. It’s critical, too, that we use those insights to point the way forward.” This includes four policy recommendations: Fix the friction, Fund the future, Empower talent, and Champion risk.
Atomico, founded in 2006 by Niklas Zennström, includes Aiven, DeepL, Klarna, Pipedrive, Stripe, and Supercell in its portfolio. European tech companies are expanding lobbying efforts at the company level through public affairs hires and collectively via open letters to European institutions, mirroring strategies used by Big Tech, legacy industries, and U.S. counterparts.
Atomico’s recommendations align with existing discussions within the startup community and Brussels policy circles. These topics include the 28th regime, proposed by advocacy group EU-INC for a pan-European company structure, calls for reduced regulation, and competitiveness considerations consistent with former European Central Bank president Mario Draghi’s 2024 report.
The 2025 edition of Atomico’s report includes a quote from European Commission President Ursula von der Leyen, who stated she wants “the future of AI to be made in Europe.” This engagement from high-level officials indicates increasing sophistication in European tech lobbying.
Atomico stresses the importance of whether the 28th regime will be a “regulation” or a “directive.” The firm argues, “This is the difference between having teeth or not, with the latter representing a continuation of the status quo where rules can be interpreted country to country, instead of the uniformity tech companies need to thrive.” Regulations are directly binding across all member states, while directives allow for varied national implementation.
France Digitale, a French startup and investor association, also published a “non-paper” on the 28th regime. Publications from ESNA (Europe Startup Nations Alliance) similarly address such issues. Atomico’s approach includes a video and a stage talk at the Slush tech conference, designed to engage both the tech ecosystem and policymakers.
A potential oversight in the advocacy is the lack of consideration for opposing forces, such as those against EU-INC. Some recommendations might disconnect from public concerns, as few Europeans prioritize the absence of new homegrown trillion-dollar companies. The counterargument posits that societal growth is impacted by lackluster economic performance.
