Were you aware that in Q1 2022, the information and communication sector accounted for 3.3% of all jobs in the top 15 global economies? What’s even more intriguing is that countries with significant tech hubs, such as Ireland, Finland, and Romania, experienced even higher percentages.
Looking ahead, this share is projected to increase to 3.7% from 2023 to 2033, largely driven by substantial investments in these tech hubs we mentioned earlier. Despite certain companies like Amazon and Meta opting to downsize their workforce, Ireland has witnessed a surge in workforce investment following the pandemic.
Dublin, a recognized tech hub, did experience a drop in its ranking among the top tech hubs in 2022. Considering these factors, we decided to delve deeper and explore the Top 3 leading European Tech Hubs for 2023.
London
London has consistently held the position as the premier European Tech Hub and this trend continued in 2021 when tech companies in the city raised a remarkable €17.2 billion. The following year, 2022, saw an even more impressive capital raise of €18.5 billion.
In addition, London welcomed seven new unicorns to its esteemed list in 2022, adding to the 20 unicorns already established in 2021. As of January 2023, the city is now home to over 18,000 tech companies, showcasing its thriving tech ecosystem. Notably, London’s influence extends to the Fintech sector, where it commands a 10% global market share, with further growth projected for 2023.
Despite concerns surrounding Brexit, which may have made the city less enticing for professionals seeking a change, investors remain enthusiastic about investing in the capital of the United Kingdom. In fact, in 2022, London was recognized as the second-best city worldwide for tech startups.
According to the Global Startup Ecosystem report, London also stands out as one of the leading cities for early-stage funding accessibility, further enhancing its reputation as a favorable destination for startups.
Berlin
Berlin’s favorable combination of lower living costs and a highly diverse talent pool has propelled it to surpass Dublin for the first time in a long while. In 2022, it claimed the prestigious rank of the second place of the Top 3 European Tech Hubs, and we anticipate it will continue to excel in 2023. In fact, Berlin has even outshined London to secure the top spot as the best tech hub for startups, owing to its robust startup infrastructure and the exceptional talent pool we mentioned earlier. The city’s advantageous position within the EU further solidifies its standing and makes it unlikely to slide down the rankings in the upcoming year.
Berlin has also earned recognition as one of the top five global cities for Fintech and is home to notable unicorns like N26 and Trade Republic. Although there was a slight decline in funding for Berlin tech companies in 2022, with €10.5 billion raised compared to the €18.5 billion in 2021, it is challenging to envision a scenario where Berlin loses its prominence. We anticipate a strong rebound in 2023, allowing the city to maintain its position as a leading European tech hub.
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Paris
President Macron’s tech-friendly initiatives have undoubtedly played a significant role in Paris maintaining its position among the top three tech hubs in 2022. With his re-election, we can expect these initiatives and incentives to continue, further bolstering the city’s tech ecosystem.
Paris boasts the world’s largest startup campus, Station F, which is a testament to its commitment to fostering innovation. Coupled with a highly skilled local talent pool and access to workers from across Europe, it comes as no surprise that the city ranks first in the EU for the highest number of engineers and researchers.
The latest data reveals that Paris is home to over 8,000 tech startups, which raised an impressive €11.6 billion in 2021. While the final figures for 2022 are yet to be released, we anticipate even better results. The government has set an ambitious goal of having at least 100 unicorns in the city by 2030. With Macron’s ongoing initiatives and a vibrant startup culture, Paris is well-positioned to maintain its prominent position among the top three tech hubs in 2023.
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Dublin
With seven unicorns already established in Dublin, there is a genuine chance that a few more will emerge in the coming years.
In the first half of 2022, Irish tech startups successfully raised close to €800 million. While this amount may not match the figures of larger cities on the list, it holds significant value for a relatively small tech hub. Ireland, as a whole, has consistently exceeded expectations as a tech hub over the past decade. It serves as the European base of operations, and its prowess in the semiconductor industry has placed it ahead of the competition.
Stockholm and Amsterdam
Stockholm and Amsterdam have emerged as prominent contenders in the tech hub rankings for the past two years, and their strong presence is well-deserved. These cities are home to abundant talent pools, thriving startup cultures, and possess strategic access to the European market. With numerous tech startups flourishing in both locations, Stockholm boasts six unicorns, while Amsterdam stands out with an impressive twelve. It would not be surprising to witness these cities ascend higher in the rankings in the upcoming years.
If you find yourself interested in pursuing a career with one of Dublin’s successful tech companies but feel uncertain about where to begin, consider reaching out to Software Placements. We specialize in assisting professionals, whether they are from Ireland or abroad, in taking their next career leap. We would be delighted to engage in a conversation with you to discuss your future goals.
