Stability after the storm Nine years on, the State of European Tech report continues to measure and analyse the state of the industry. Our aim has remained the same: to bring you an accurate picture of what’s happening in European tech - go- ing beyond the headlines, digging into the data, and re昀氀ecting the true state of European tech. In June, we launched our 昀椀rst-ever mid-year update, which highlighted the new market reality after downturn hit in the summer of 2022. Amidst rising in昀氀ation and interest rates, and growing uncertainty, the environ- ment has been even more challenging this year. But the foundations of the ecosystem remain strong. Now, we’re diving into the fundamentals that will turn this reset into an opportunity for European tech, and provide a data-driven exploration of the path forward. Venture model passes the test The European ecosystem is in a much stronger position compared to prior 1 downturns and has proven its resilience. Recovery under way, but Europe’s potential remains untapped More and more indicators point to the green shoots of recovery and validate 2 our long-term optimism. But this remains a critical moment for Europe to come back stronger. The ecosystem must embrace innovation Europe has entrepreneurship aplenty. But the whole ecosystem must em- brace risk to make sure that innovators can succeed. 3 21 | Executive summary