European tech gets political

Venture capital firm Atomico has released its annual State of European Tech report, and while it confirms that investment is trending upward, this year’s edition takes on a broader purpose. Beyond assessing the ecosystem, the report steps firmly into advocacy, reflecting a growing shift: European startups and investors are becoming far more active in lobbying.

“It’s no longer enough to show how far we’ve come. It’s critical, too, that we use those insights to point the way forward,” said the report’s author, Tom Wehmeier, a partner at Atomico and the firm’s head of intelligence. This year’s edition outlines four policy priorities, grouped under clear banners: Fix the friction, Fund the future, Empower talent, and Champion risk.

Atomico’s recommendations are supported by responses from a vast network of industry participants, and the firm itself carries enough weight to speak beyond its own portfolio. Founded in 2006 by Skype co-founder Niklas Zennström, Atomico backs some of Europe’s most prominent tech companies, including Aiven, DeepL, Klarna, Pipedrive, Stripe, and Supercell.

European startups of this size are increasingly adopting lobbying tactics long used by Big Tech, legacy industries, and U.S. peers — through direct political outreach, public affairs hiring, and coordinated open letters that have drawn attention within EU institutions. It’s no surprise, then, that many of Atomico’s recommendations line up with widely discussed themes in both the startup community and in Brussels, such as EU-INC’s proposed “28th regime” for a unified company structure across the EU, calls for reducing regulatory burden, and growing concerns about Europe’s competitiveness — also highlighted in Mario Draghi’s 2024 report.

This alignment is also visible in the report’s endorsements. For the first time, the 2025 edition includes a quote from European Commission President Ursula von der Leyen, who says she wants “the future of AI to be made in Europe.” Such high-level attention reflects how much more sophisticated European tech lobbying has become.

On the 28th regime, for example, Atomico stresses the importance of whether the proposal becomes an EU regulation or a directive. “This is the difference between having teeth or not,” the report notes. A regulation would apply uniformly across all member states, while a directive allows national interpretation — precisely the inconsistency many startups say holds them back.

This level of nuance isn’t new. Groups like France Digitale have already published detailed “non-papers” outlining strong positions on the 28th regime, much like other European startup alliances. But Atomico’s delivery — spread across the written report, a video, and a keynote at Slush — is designed to reach both policymakers and the broader tech community.

What remains less explored is the resistance such proposals may face. Most Europeans are not directly concerned with whether the continent produces trillion-dollar companies, and some of the report’s recommendations may feel disconnected from everyday realities. Supporters argue, however, that slow growth impacts society as a whole — and European tech must still work harder to build public trust. As Alexandru Voica, head of corporate affairs and policy at AI unicorn Synthesia, explained, that challenge is shaping how prominent startups communicate.

“Communications and policy are more important than 10 years ago because in Europe, there’s a deep distrust of the tech industry,” Voica told TechCrunch. “A decade ago, comms was mostly about product growth and brand awareness. Today, the work is centered on risk mitigation and reputation management.”

Still, political engagement comes with risks. If the tech sector aligns too closely with specific parties or agendas, it could face backlash and lose broader support. Yet the central message in Atomico’s report is likely to resonate across the ecosystem: Europe stands at a decisive moment.