Written by 10:10 Tech News Views: [tptn_views]

“5 Takeaways from Europe’s Tech Investment Boom and Bust”

Have you ever wondered what goes up must eventually come down? The European tech investment scene of the period 2020-2021 is a perfect illustration of this truism. Nevertheless, like that friend who still shows up to brunch after a wild night, there’s a hint of a silver lining in this narrative.

1. The Hangover from the Party

In the tech world, investment parties like the one Europe had in 2020 and 2021 hardly go unnoticed. What follows such exuberant periods is often a hangover, a lull in investments and a certain cooling down – the explicit reality of these European startups today.

2. The $60 Billion Silver Lining

While the hangover is real, it’s not all doom and gloom for European startups. There’s still some merriment left from the party: VC investment in these firms is still a historical high, touching $60 billion, not a figure to be shrugged off.

3. Pre-Pandemic Vs Post-Pandemic

Keeping the party analogy going, let’s say we were all wearing rose-tinted glasses pre-pandemic. VC investments in that era were significantly lesser. So, despite the perceived hangover, we’re still much better off than we were in our less wild and exciting days.

4. The Pandemic Effect

The pandemic worked like a high-energy party-starter, igniting an unforeseen surge in VC investment. Such dramatic anomalies, though thrilling for a moment, indeed contribute to the contrasting wave of the current hangover. Hence, any observations must account for this anomaly while looking at VC investments.

5. The Bigger Picture

It’s easy to focus on the pounding head of the following morning and forget the fun of the night before. However, the broader outlook is still encouraging. As humbling as the current dip may be, it’s a cycle, much like hangovers. Remember, after every party comes a hangover, and after every hangover… well, there’s another party.

In this telling analysis of Europe’s tech investment rollercoaster, it is clear that while the thrill can’t last forever, there’s plenty left over for the post-party cleanup crew to be optimistic about. While the rollercoaster ride may have its discouraging dips and thrilling hikes, it is crucial to retain balance and view the overall upward trajectory over time.

Credit: BBC. TechCrunch, Reuters