European tech funding halves to $45 billion, back to pre-Covid levels — but AI is a bright spot

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Venture capital investment into Europes tech industry plunged by half in 2023 as investors continued to reel from the effects of high interest rates, according to data from venture capital firm Atomico. However, artificial intelligence was a standout category that saw continued mega funding rounds. Total venture funding for European tech companies will reach $45 billion this year, Atomico expects. Tom Wehmeier, head of data insights at Atomico, told CNBC that where Europe stood out was that the region is actually up on the past three years compared to its U.S., Chinese, and other international counterparts. "There has been this reset after an overheated and unsustainable period of growth in 2021 and early 2022," Wehmeier told CNBC.

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