European tech startups entered the global stage. According to Viva Technology‘s list, we outlined the top startup unicorns in Europe in 2022. In partnership with GP Bullhound, Viva Technology, the biggest startup and tech event in Europe, compiled the list.

The critical criteria to make it onto the list are growth, velocity and growth potential, funds raised, growth in employee numbers, geographical distribution, and the ability to impact society positively.

More than 40 per cent of companies listed this year have a “for good” business model.

The most promising scale-ups in various categories will be awarded the Next Unicorn Awards 2022 at VivaTech in Paris in June.

European tech companies are forging ahead in creating new tech unicorns. Europe witnessed the birth of 85 new tech companies with a valuation of $1 billion or more in 2021. Therefore,  registering a unicorn growth rate is more than twice the US.

However, this indicates that the US growth rate was 124% from 2020 versus the EU growth rate of 400%, i.e. 17 new ones in 2020 and 85 in 2021. Also, US investors had a significant role in creating these glittering creatures in Europe. Nearly 50% of the investors in Europe’s unicorn cap tables are non-European, and 77% of those are from North America.

Distribution of venture capital in Europe

Eastern Europe comes last in terms of unicorn headcount but still has some stars and a median valuation of €2.7 billion and 2,000 employees. A snapshot of other European regions shows that Klarna’s €37.4 billion valuations boosted the regional total of €74 billion. The DACH countries of Germany, Austria, and Switzerland have seen the highest job creation, with more than 70,000 people working in unicorns and soon-to-be unicorns.

The first month of the year was good for much good old dealmaking: European technology startups raised just over €12 billion in funding in January 2022 from more than 1,240 investors across 450+ deals. Tiger Global was the most active investor, with 11 deals accounted for.

While the impact of US funds on European uni- and soonicorn cap tables are mostly coherent across regions, Benelux stands out with a share of only 62% of US investors. The most dominant region for US investors in Northern Europe. The increased number of US investors is Klarna, located in Sweden. Moving forward, an increased number of investors in the Benelux region have a strong focus on Future Mobility & Supply Chain.

Southern Europe is home to the youngest soonicorn companies with an average age of 7 years and 8 months. Not surprisingly, they show the lowest average valuation for soonicorns at EUR 183 m but could prove to have the highest unrealized potential within Europe.

Lastly, UK & Ireland produced by far the most valuable companies with an astonishing combined unicorn valuation of EUR 138 bn.