Atomico, a venture capital firm, has released its latest State of European Tech report, revealing a continued rise in investment. However, this year’s report does more than just analyze the tech landscape; it also serves as a call to action, highlighting a significant trend: both European startups and investors are increasingly engaging in lobbying efforts.
“It’s not sufficient anymore to simply highlight our progress. We must also leverage these insights to guide the path ahead,” said Tom Wehmeier, the report’s author, who is also a partner at Atomico and leads the firm’s intelligence division. The report puts forward four clear policy suggestions: Remove barriers, Invest in the future, Strengthen talent, and Support risk-taking.
Atomico draws on feedback from a broad spectrum of participants to support these policy proposals, and its influence extends beyond its own interests. Established in 2006 by Skype’s co-founder Niklas Zennström, Atomico’s investments include leading European tech firms such as Aiven, DeepL, Klarna, Pipedrive, Stripe, and Supercell.
Inspired by strategies from major tech corporations, traditional sectors, and their American counterparts, large European tech companies are increasingly advocating for themselves—both individually, by hiring public affairs professionals, and collectively, through open letters that have caught the attention of European authorities.
This is also why many of Atomico’s suggestions resonate with ongoing discussions in both the startup scene and Brussels policy circles—whether it’s the 28th regime proposed by EU-INC to establish a unified European company framework (currently, businesses must deal with 27 separate national systems), demands for lighter regulation, or broader debates about competitiveness reminiscent of Mario Draghi’s 2024 report for the European Central Bank.
Atomico’s report also demonstrates support from the highest levels. For the first time, the 2025 edition includes a statement from European Commission President Ursula von der Leyen, expressing her desire for “the future of AI to be made in Europe.” This level of engagement helps explain the growing sophistication of lobbying within Europe’s tech sector.
Regarding the 28th regime, Atomico points out that whether it is enacted as a “regulation” or a “directive” is crucial. “This distinction determines whether the measure has real impact or not; directives allow for varied national interpretations, while regulations create the consistency tech companies require to succeed,” the firm explains. (In the EU, regulations are immediately enforceable in all member states, whereas directives let each country decide how to implement them.)
Such detailed analysis is not new. France Digitale, an association for French startups and investors, has released a “non-paper” on the 28th regime similar to what other advocacy groups, like the Europe Startup Nations Alliance (ESNA), have produced on different issues. Atomico’s perspective, also shared through a video and a presentation at the Slush tech conference, aims to reach both policymakers and the broader tech community.
Ironically, what may be lacking is an acknowledgment of the potential opposition to initiatives like those from EU-INC. More generally, some of the recommendations might seem disconnected from everyday concerns; after all, most Europeans aren’t preoccupied with the absence of new trillion-dollar companies in their region.
The counterpoint is that slow economic growth affects everyone, but European tech’s new lobbying efforts may still need to do more to connect with the public. Alexandru Voica, who leads corporate affairs and policy at London-based AI unicorn Synthesia, says this is one reason why larger startups are becoming more outspoken.
“Communications and policy have become much more significant than they were a decade ago, largely because there is deep skepticism toward the tech sector in Europe,” Voica told TechCrunch. “Ten years back, communications was often just an extension of marketing to boost product growth and brand recognition. Now, our focus is much more on managing risks and protecting reputations, among other things.”
There are also potential downsides to this lobbying push. If it becomes too closely associated with specific political groups, it could provoke backlash and weaken broader support. Nevertheless, regardless of political leanings, many would agree with Atomico’s main message: “Europe is truly at a turning point.”
