Europe has surpassed China in terms of new unicorns as crackdowns have hit the Asian giant, according to a new analysis reported on the WSJ.
Data released by London-based venture capital firm Atomico, Europe has added 98 new unicorns so far this year, bringing its total to 321. This covers markets in all 27 European Union countries and 18 other territories, including the UK, Norway, and Switzerland.
China has reported 26 new unicorns this year, bringing its total to 300. The company still has more tech firms than in Europe, but the trends have started to shift in the past 12 months.
China recorded $45 billion in venture funding this year, lower than the $52 billion recorded for the full-year 2020. Meanwhile, Europe has already overtaken its 2020 total of $48 billion, with $77 billion so far until September.
The decline in Chinese unicorns comes amid the heightened regulatory oversight on the private sector, as its government pushed the private sector to do more to serve the Communist Party’s concerns.
Atomico Partner Tom Wehmeier said predictability in European markets is now more attractive given uncertainties in China. EZU is up 1.31%, while NGM is up 2.28% premarket