This year has marked a shift from previously soaring investment levels, with the European tech ecosystem collectively raising approximately $45 billion, a decline from previous years. Yet Estonia, Netherlands, and Norway are amongst the countries that have captured the biggest gains in investments, reports Atomico in their annual State of European Tech report. What is the key?
In the face of this adversity, certain segments within European tech have emerged as pivotal growth drivers. The carbon & energy sector, encompassing climate tech, saw a surge in investment, accounting for 30% of the total capital inflow in 2023. Estonian contribution to this is massive, with record rounds secured by battery producers, hydrogen innovators, and clean energy enablers. Additionally, the AI and automation sectors attracted significant capital, with European AI companies demonstrating a robust growth trajectory and boasting a larger AI talent pool than the U.S.
On top of that, the European tech landscape is witnessing a transformation in its investment approach. Notably, the majority of early-stage investments in European tech companies are now sourced from within the Old Continent, a trend that underscores the region’s growing self-reliance and resilience.
In this scenario, Estonia has the most startups and unicorns per capita in Europe. Built on a foundation of Europe’s best education, this ecosystem continues to deliver. Estonia stands out for its high density of funded startups — over 400 per one million inhabitants. It also leads in billion-dollar companies, with 4.5 unicorns per million per capita. According to Invest in Estonia’s proprietary calculation, the number stands even higher at 7.7 unicorns.
Moreover, according to the recent PISA 2022 results, Estonia has upheld its position as a leader in education, demonstrating consistent excellence. In the latest assessments, Estonia ranks exceptionally well in mathematics, science, and reading, maintaining its status as a top performer in Europe and the top 4 across all of the OECD.
PISA 2022 emphasizes mathematical literacy, defined as the ability to reason mathematically and use mathematics in various real-world contexts. This includes understanding and employing mathematical concepts, procedures, and tools to describe, explain, and predict phenomena, reinforcing that mathematics is integral to personal, civic, and professional life.
The results affirm the effectiveness and equity of Estonia’s education system, showing that academic achievement in the country remains largely independent of socioeconomic backgrounds. Another notable feature is the comparatively small impact of disruptions, such as the global pandemic.
Considering this continuous performance, Estonia’s world-renowned status as an e-state and hub for innovative startups can be attributed to this educational foundation. Digital innovation remains a cornerstone of Estonian education, with schools utilizing advanced technology to prepare students for a digital future. Yet, the balance between digital and traditional learning methods ensures a comprehensive and adaptable educational environment.
All in all, according to PISA estimates, Estonia’s approach to education is characterized by its inclusivity and fairness, ensuring equal access to quality education regardless of background. The country’s vocational training, higher education, and adult education systems are noted for their quality, flexibility, and alignment with modern industry needs.