Did you know that in Q1 2022, 3.3% of all jobs in the top 15 global economies were in the information and communication sector? But even more interesting is the fact that in countries with major tech hubs such as Ireland, Finland, and even Romania, the percentage was even higher.
In fact, from 2023 to 2033, the share is expected to grow to 3.7% and much of this is thanks to considerable investment across those tech hubs we just mentioned.
There’s no doubt that here in Ireland, we’ve seen a jump in workforce investment since we came out of the pandemic. This is despite the fact that some companies (Amazon, Meta) have opted to reduce theirs.
While we know that Dublin is a bona fide tech hub, 2022 saw the Fair City drop down the list of top tech hubs.
So with this in mind, we thought we’d take a closer look at what the top tech hubs in Europe are for 2023.
London is the top tech hub in Europe and has been for some time now. 2021 saw tech companies based in the city raise an incredible €17.2 billion. 2022 saw more of the same with an even more impressive €18.5 billion in raised capital.
The city also added another 7 unicorns to its ranks in 2022 to go along with the 20 enlisted in 2021. This means that there are now over 18,000 tech companies that call the city home in 2023 and it’s only January. London is also a major player in the Fintech sector with a 10% global market share that is expected to grow in 2023.
Unfortunately, the furore around Brexit has made the city a less attractive option for candidates looking to for a change of scenery. Yet despite this, investors are still eager to invest in the UK’s capital. In 2022, the city was named the second best city in the world for tech startups.
The Global Startup Ecosystem report also stated that London is one of the best cities for access to early-stage funding.
Berlin’s lower cost of living combined with an incredibly diverse talent base has seen it push Dublin down the list for the first time in what seems like forever. 2022 saw it ranked as the second-best tech hub in all of Europe and we can’t see a whole lot that would have changed that for 2023. It’s actually Berlin that pipped London to post as the best tech hub for startups thanks to its extensive infrastructure for startups and that amazing talent base we just mentioned. Add to that the fact that it’s within the EU and you can see why it’s unlikely to drop down the list for 2023.
Berlin has also been selected as one of the top five cities for Fintech in the world and is home to several major unicorns such as N26 and Trade Republic. One area where the city did fail to meet expectations in 2022 was in funding. 2021 saw Berlin tech companies raise €18.5 billion in funding while in 2022 it was only €10.5 billion.
Yet despite this apparent nosedive in investment, it’s difficult to envisage a scenario where Berlin suddenly falls off the radar. No, we fully expect to see the city bounce back in 2023 and retain its place as a top European tech hub.
The tech-friendly initiatives of President Macron certainly helped Paris retain its place in the top three in 2022. His winning of the election last year will no doubt see those initiatives and incentives persist.
Of course, we can’t mention Paris without noting the fact that it is home to the world’s largest startup campus Station F. Add to that a highly skilled local talent pool and access to workers from across Europe, and it’s no wonder that the city is ranked as number one for the highest number of engineers and researchers in the EU.
According to the latest data, there are more than 8,000 tech startups that are based in Paris. These companies raised a creditable €11.6 billion in 2021. Although we have yet to see the final figures for 2022, they should show an improvement on that. The government has stated that it hopes to have at least 100 unicorns in the city by 2030. With Macron’s initiatives in place and a welcoming startup culture, Paris should retain its top three spot for 2023.
We’re proud of our hometown and while it may not be in the top three any more, we think it may surprise a few people in 2023. There are now 7 unicorns in the city with a genuine possibility that a few more will be added over the coming years.
Irish tech startups raised almost €800 million in the first half of 2022 alone and while this may not be quite as large a figure as other cities on the list, it’s a significant figure for such a relatively small tech hub. In fact, Ireland, as a whole has punched well above its weight as a tech hub in the past decade and is the European base of operations with the semiconductor industry alone seeing Ireland lead the chasing pack.
Stockholm and Amsterdam
Both Stockholm and Amsterdam featured heavily in tech hub rankings over the last two years and with good reason. Both boast significant talent pools, impressive startup cultures, and access to the European market. There are also thousands of tech startups located in both cities with 6 unicorns based in Stockholm and an incredible 12 based in Amsterdam. It wouldn’t be too surprising to see either of these cities jump up the list in the coming years.
If you’re interested in working for one of the many successful tech companies in Dublin but have no idea how to start your journey, then get in touch with Software Placements. We’ve helped professionals from both Ireland and abroad take the next step in their career and would love to have a chat with you about your goals for the future.