The Future is European Tech
We’re back in the US for Blueprint this year, representing European technology investors forging the path for a cleaner, smarter tech-driven world.
Europe has risen to become a formidable hub of technology, attracting global attention with its visionary approach and steadfast commitment to innovation. Nowhere is this better exemplified than in real-estate and construction, where we’re seeing a surge in tech adoption in a traditionally slow to digitise sector.
The growth in PropTech and ConstructionTech investment and adoption is being driven by keen interest from investors, developers, construction firms and asset managers actively seeking to leverage technology and future-proof the built world.
Why Europe: Performance
Did you know that Europe is currently home to more than 500 unicorns, and its unicorn growth rate is surpassing that of the US? This remarkable growth in the number of unicorns showcases the diversity and depth of the European tech markets. Additionally, these unicorns originate from 25 different countries, highlighting the rich diversity of tech hubs across the continent.
Specifically, in our sourcing of new start-ups to invest in, we continue to find regions of specific expertise and leadership producing original ideas: start-ups from the Nordics are specialising in ESGTech, Cleantech and ClimateTech for the built world, while Germany remains a leader in DeepTech and Data Privacy. Pi Labs has now invested in 80+ businesses across 17 different countries and we remain bullish on European technologies with the potential to scale beyond their home markets. Recent examples from within our portfolio include Bulgaria’s OfficeRnD, which has — expanded to Singapore, Denmark, South Africa, and China — while Poland’s Airly has seen growth in Spain, Indonesia, Romania, Netherlands and London-based Plentific has successfully built a presence in Germany and the US.
Why Europe: Sustainability
Real estate and construction contribute to over 60% of carbon emissions in cities, and with the urban population projected to reach 68% by 2050, technology will be the key to tackling the global climate challenge. As global climate regulations tighten, the pressure to innovate becomes more urgent in the real estate sector. Europe’s commitment to sustainability, as evidenced by its leading position in the Global Sustainable Competitiveness Index (GSCI), makes it a prime location for championing green practices within the real estate sector. This trend is reflected in Pi Labs portfolio built over the past 8 years; c.80% of our portfolio companies have an ESG impact. And, for our entire portfolio, we work closely with founding teams to support them in developing an ESG roadmap and executing on key ESG KPIs.
While ESG is an exciting and integral part of the tech landscape, it is important to recognise that European tech’s scalable potential extends far beyond this realm. The diversity of industries and sectors being revolutionised showcases Europe’s ability to drive technological advancements across the board.
Why Europe: Global Relevance
The core of Pi Labs’ investment thesis is investing in best-in-class built world tech companies with global applicability and scalability. There is no better region within which to deliver on that strategy than Europe. Europe is made up of a number of unique and independent economies, which means that when ambitious founders set up shop, they have to be thinking beyond their home-market to achieve scale. As such, we find that European built world technologies are designed to be portable across-borders and into global markets almost immediately following inception. This phenomenon is also evidenced in the way that European cities top the index for being most globally connected. Such geographic pressures may be less present in the US market, where founders already find themselves operating within a large, homogenous capital market. We are betting chiefly on European technology, ahead of US technology, to be the solutions that are deployed in MENA and APAC to support urbanisation across these regions.
Why Europe: Labour Force
While the above mentioned macro-tailwinds are key contributors, the real driving force behind the European tech opportunity is its people; Europe has an incredibly advanced and deep talent pool. The continent boasts an impressive array of skilled software developers (almost 50% more than the US) and innovators, ready to fuel the next generation of ground-breaking ideas. Venture funding plays a pivotal role in nurturing these innovators, especially those originating from leading research and science hubs, as well as world-class academic institutions.
This unique blend of exceptional science clusters, a talented labour force, and strong venture funding culminates in a thriving tech landscape across Europe. It propels the continent to the forefront of global innovation and ensures a promising future for the region’s technological advancements.
Europe’s journey from an emerging player to a global built world leader is a testament to its ability to foster institutional-scale innovation, provide a nurturing ecosystem and regulatory framework for early-stage start-ups, and be at the forefront of tackling our greatest global crises, climate change.
As the Blueprint conference unfolds, we are excited to represent the European built world technology ecosystem shaping a brighter, smarter, and more sustainable future for all. If you’re attending the event, we’d be happy to meet you. Please drop us an email if you want to connect.
