In today’s episode, Andreas Munk Holm talks with Tom Wehmeier, Head of Intelligence at Atomico, to discuss the State of European Tech and what’s shaping the ecosystem's future. For over a decade, Tom has been at the forefront of data-driven investment strategies, market education, and ecosystem analysis at Atomico. He leads the firm's intelligence efforts, sits on the investment committee, and shapes European venture capital policy discussions.

Operating across Europe, Atomico is a multi-stage venture capital firm with over 155 portfolio companies, 1 in 6 valued in excess of $1 billion. They’ve partnered with some of the continent’s biggest tech success stories, including Klarna, Stripe, and DeepL. Tom has been driving Atomico’s research efforts, particularly the annual State of European Tech report, which has become the most awaited yearly report in venture that helps us understand Europe’s investment landscape and future potential.

In this conversation, Tom shares insights into Europe’s confidence crisis, the impact of regulation, and the future of AI and deep tech. He unpacks key findings from the latest State of European Tech report, discussing capital gaps, liquidity challenges, and why Europe’s fragmented markets can be a strength. The discussion also covers public market dynamics, how Europe can compete in AI, and government collaboration's role in deep tech innovation.

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We explore Europe's tech progress over the last decade, challenges in scaling, and the region’s role in AI and deep tech. Tom shares insights on capital gaps, public market struggles, and the importance of shaping a strong European tech narrative. Key themes include policy impact, liquidity concerns, and why Europe’s fragmented markets can be a strength rather than a weakness.

Is Europe truly falling behind, or are we just failing to tell our success stories? Tom and Andreas discuss how negative narratives—often driven by U.S. investors—shape perceptions of European tech. While the data tells a different story, Europe’s ability to counter this with strong storytelling and ecosystem advocacy is critical.

The conversation tackles the ever-present comparison between Europe and the U.S. While the U.S. is ahead in capital availability and liquidity, Europe has seen 10x growth in investment over the last decade. Tom highlights why comparing the two regions is often misleading and why European tech is better positioned than ever.

Bureaucracy and regulation remain major barriers to scaling in Europe. Tom discusses the impact of GDPR, the AI Act, and why regulatory fragmentation makes it harder for startups to scale across borders. The EU Inc. initiative, Draghi Report, and other policy movements could be game-changers if executed effectively.

Despite strong private markets, European tech struggles with public market liquidity. With over 300 trading venues and fragmented regulatory structures, European IPOs often head to NASDAQ instead. Tom discusses what’s needed to fix this—including stronger institutional investors focused on growth-stage tech.

Despite claims that Europe is losing the AI race, the data shows a different picture. Europe has as many AI professionals as the U.S., world-leading research hubs, and breakout companies like Mistral, Eleven Labs, and Poolside. However, Europe still lags in AI funding, with U.S. investments outpacing it 5 to 1.

Europe has a strong deep tech and climate tech ecosystem, with world-class researchers and high early-stage investment. However, scaling remains a challenge due to capital intensity and lack of public-private funding collaboration. Tom highlights why government support and VC partnerships are crucial for long-term success.

Looking ahead, Tom outlines the six key "unlocks" needed for Europe to reach its full potential:

With a potential $5-10 trillion in additional value creation over the next decade, Europe has a clear path forward—but execution is key.