Spurred by Europe’s fast-growing tech sector, startups in the region have raised a record $121 billion in funding this year, almost three times the $41 billion brought in last year, according to the State of European Tech 2021 report from venture capital firm Atomico.
Europe now has 321 unicorn startups — companies worth over $1 billion — with 98 reaching that status in 2021. There are also 26 decacorns worth $10 billion or more.
European tech company exits reached a combined $275 billion worth of enterprise value and the region’s startup pipeline is now on par with the U.S.
See also: European Startups Have Raised Over $60 Billion, Beating 2020 Record
European tech created $1 trillion of value in the past eight months, according to the report, and talent mobility and distributed success is powering newer hubs.
“The European tech talent pool is deeper and more experienced than ever, as talent is recycled across the continent. Yet there is still a way to go; talent acquisition tops the list of challenges for founders, alongside fundraising,” the report indicated.
European tech has been a “breeding ground” for startups in all industries, with a new league of entrepreneurs considering climate impact and a drive to improve diversity and inclusion.
Read more: Digital Health Startups Making Major Moves Across the UK, Europe and Africa
“It’s been a defining year for European tech,” Tom Wehmeier, Atomico’s head of insights, told CNBC. “I think what we’ve seen in the numbers is that European tech is creating value faster than ever.”
He added that it took decades to reach the first trillion in equity value, which was hit in December 2018. “And then we went from $1 trillion to $2 trillion in 24 months, and then this year, the most recent trillion has been added in eight months,” Wehmeier said.
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