A Keynote with Guillaume Bonneton, GP Bullhound & Carlos de la Esperanza, Bullhound Capital

Report Overview and Scope

• GP Bullhound released its 11th annual "Titans of Tech" report, analyzing European technology funding trends, geographies, sectors, and unicorn creation from the 11th year of the study.
• The report frames the current era as Europe's "technological renaissance," characterized by economic recovery and a renewed push for software sovereignty.

Unicorn Valuation and Count

• The number of European unicorns (companies valued over $1 billion) multiplied by 2.4x between 2020 and 2022, followed by a further 20% increase from 2022 to present.
• Pre-2020 Europe had zero unicorns founded after 2000; the ecosystem now hosts 21 such companies.
• Current unicorns are predominantly pre-2023, meaning roughly 72% of them have not received a valuation marker since 2023; consequently, a portion of these companies may not currently sustain $1 billion valuations if re-evaluated.
• Sweden leads in average valuation per unicorn at $11 billion, compared to $4.5 billion in the UK and $2–2.5 billion in Spain and France, indicating higher maturity and scale in the Swedish ecosystem.

Funding Trends and Capital Allocation

• Total Venture Capital funding in Europe has recovered to approximately $15 billion annually, representing a 50% increase over pre-2020 levels ($10 billion) and exceeding inflation-adjusted historical averages.
• Funding volumes have risen for six consecutive quarters and are trending toward $17 billion annually, contradicting narratives of record VC lows.
• The proportion of deals valued at $50 million or more has surged from 35–40% pre-2020 to over 60% today, signaling ecosystem scaling and serving as a leading indicator for future unicorn creation.
• Approximately 38% of unicorns have not raised new capital since 2023, as many filled balance sheets during 2021–2022 and shifted focus to cash generation.

Geographic Distribution

• The UK, Israel, Germany, and France collectively account for roughly two-thirds of the European unicorn ecosystem.
• Israel leads the region in new unicorn creation and the emergence of "rising stars."
• Five out of six identified rising stars in the current report are "AI-native" companies.

Liquidity and Exit Strategies

• IPO activity has stalled significantly, dropping from 10–20 annual listings during the 2020–2021 bull market to just two in the current year, with a pre-pandemic baseline of 7–10.
• Founders are deferring public listings due to regulatory scrutiny, macroeconomic volatility, and increased operational stress.
• To address liquidity needs without immediate IPOs, founders are orchestrating large secondary rounds at high valuations, often involving pre-IPO investors to facilitate early investor and employee exits.
• The report identifies Veeam Security (France) as a recent example of a company utilizing this secondary liquidity pathway.

Sector Focus: AI and Dual-Use Technology

• AI companies raised nearly €20 billion in the last 12 months, reaching levels comparable to previous bull markets.
• A structural shift has occurred where AI infrastructure and foundational models now dominate funding, contrasting with the previous European focus on business applications and frontend development.
• European firms like Mistral and Poolside are securing "ultra-mega rounds" to build hardware and foundational models, reducing reliance on US and Chinese infrastructure.
• Dual-use technology (civilian and military applications) is identified as a secondary growth sector, heavily boosted by government intervention.

Forward-Looking Projections

• GP Bullhound projects 50 companies will become unicorns within the next 24 months, selected via a network of 150 VC and growth investors and an analysis of 1,000+ companies.
• The predicted next generation of unicorns is characterized by aggressive hiring and heavy reliance on AI technology.