A picture illustration of Euro banknotes taken in central Bosnian town of Zenica, April 25, 2014. Picture taken April 25. REUTERS/Dado Ruvic

This is how far the European tech market lags behind the US and Asia

$240 billion

While Europe is spawning more exciting tech companies, as proven with the recent IPOs of Spotify and Adyen, a new report by investment company GP Bullhound shows just how far the European tech market is from its American and Asian rivals.

Published   |  Photo by Reuters//Dado Ruvic
A picture illustration of Euro banknotes taken in central Bosnian town of Zenica, April 25, 2014. Picture taken April 25. REUTERS/Dado Ruvic
$240 billion

While American tech firms founded since 2000 are worth almost $1.4 trillion, and similar Asian firms are valued at $675 billion, European tech companies have a cumulative valuation of just $240 billion.

A picture illustration of Euro banknotes taken in central Bosnian town of Zenica, April 25, 2014. Picture taken April 25. REUTERS/Dado Ruvic
$240 billion

Giants like Alibaba, worth $480 billion, and Facebook, worth $550 billion, dwarf promising European firms like Spotify and Zalando, which have a combined market value of $42 billion.

A picture illustration of Euro banknotes taken in central Bosnian town of Zenica, April 25, 2014. Picture taken April 25. REUTERS/Dado Ruvic
$240 billion

One of the main reasons Europe lags behind is funding—in particular the size of rounds.

A picture illustration of Euro banknotes taken in central Bosnian town of Zenica, April 25, 2014. Picture taken April 25. REUTERS/Dado Ruvic
$240 billion

American and Asian tech companies created since 2000 have raised an average of $7.3 billion, while European ones raised just $1.6 billion, says GP Bullhound.

A picture illustration of Euro banknotes taken in central Bosnian town of Zenica, April 25, 2014. Picture taken April 25. REUTERS/Dado Ruvic
$240 billion

Silicon Valley is also far ahead in part because of its culture of support from veteran tech entrepreneurs, and its pay-it-forward mentality that’s still being developed in Europe.

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