Welcome to ICYMI – a weekly snapshot of European news stories that have given me pause for thought. ICYMI is a chance for you to go beyond the front-page headlines and find out what other stories may be worthy of your attention.
The so-called “X-odus” continued at pace last week, with several of Europe’s largest publishers including The Guardian, Ouest France, and Sweden’s Dagens Nyheter, quitting the social network run by controversial billionaire Elon Musk.
Many X users and media outlets have left the platform due to growing concerns over the spread of hate speech, a lack of regulation, and other ethical issues.
This sentiment is echoed by Margrethe Vestager, the outgoing European Commissioner for Competition, whose tenure has seen the European Commission pursue multiple landmark cases against “Big Tech” to enforce antitrust laws. In a recent interview, she warned that X must comply with EU regulations or face the consequences.
One company that may do well to heed Vestager’s advice is Google. The search giant has been ordered by the US Department of Justice to sell its Chrome browser to reduce the company’s dominance in online search and advertising. The company has faced criticism for deals with Apple and other companies that make Google the default search engine on many mobile devices.
It remains to be seen whether offloading Chrome will change consumer behaviour and what impact this could have on the broader AdTech industry in Europe and the US. However, Google has come out fighting, arguing that the decision could harm America’s standing as a global technology leader and announcing plans to appeal.
The Funding Gap: Investment shortfall hinders European scale-ups
According to research by VC firm Atomico, Europe is now home to over 35,000 early-stage tech startups, with London, Berlin, and Paris among the top ten global hubs for early-stage funding.
Over the past decade, Europe has witnessed a remarkable tenfold increase in funding for tech companies. This year, the total amount raised is forecast to reach $45 billion, surpassed the $43 billion raised in total between the 2005 and 2014.
Yet while this is an impressive sum, it falls short of the $47 billion invested last year and pales in comparison to the $101 billion raised during 2021 – a record year, driven by a significant yet short-lived rebound following the Covid-19 pandemic.
Despite this, Atomico’s research suggests that the continent’s tech scene appears to have hit a growth ceiling, with US tech firms twice as likely to secure funding rounds of $15 million as those in Europe. The report reveals that many scale-ups have struggled to securing financing at home, with 1 in 2 turning to US investors instead.
One potential solution to the funding gap could lie in building closer ties with European pension funds. Despite managing $9 trillion in assets, they invest 0.01% of capital in European venture capital. Even a small uptick in investment could be transformative.
The Gender Gap: Progress plateaus as women in tech fight for greater influence and funding
The eight edition of Tyto’s Tech 500 report revealed women are still facing obstacles when it comes to gaining and maintaining influence, with women making up 27% of positions in the ranking of technology influencers for the second consecutive year.
The Tyto Tech 500 highlights the industry-wide challenges that limit women’s influence and opportunities, including limited access to funding and leadership roles.
This is echoed in Atomico’s report, which found that the gender funding gap is slowly closing with all-female teams now raising twice-as much investment as 10 years ago. However, a 4.9% share of all funding rounds and 1.7% share of funding at Series B and later stages, suggests that there is still a long way to go to close the gap.
Something that could make an enormous difference for women working in tech is the EU Pay Transparency Directive which comes into force in 2026. The new law requires firms to state salary ranges in job listings, explain differences in pay exceeding 5%, and carry out thorough internal audits if any disparities arise.
It will be interesting to see what effect the rules have. Could it spark a wave of job-hopping as workers become more aware of pay gaps and look for better deals?
While there are clear advantages for workers, women, and other underpaid groups, this could shake things up for many companies, potentially creating talent shortages and driving up recruitment costs as they scramble to replace departing staff.
On the other hand, it might push some workers to retrain in areas where skills are in high demand, like artificial intelligence. AI specialists earn 10% more on average, so it is a tempting career path for those looking to boost their earning potential.
