Despite more expensive money, European tech wants to keep growing

The return of inflation and the rise in interest rates it entails makes the necessary investments for tech companies more expensive, at a time when Europe hopes to bring out digital giants.

The French new technologies sector must have ten "décacornes" by 2030, companies whose value reaches 10 billion dollars, launched Wednesday by the Minister of the Economy Bruno Le Maire, during a trip to the VivaTech fair in Paris.

According to the latest "Titans of Tech" report by specialist firm GP Bullhound, after years of unbridled growth, the continent's tech ecosystem exceeded $1 trillion in cumulative value in 2021. It has 283 unicorns (businesses worth over $1 billion) and 17 "decacorns".

But the cold spell that has gripped the markets for several months testifies to doubts about these new objectives.

"Everyone has seen that the financing conditions are changing radically. Easy money, it's over and everyone must be aware of it", recognized the Mayor.

“The more the rates go up, the more interest there will be in investing in debt” and less in venture capital, explains Guillaume Vitrich, associate lawyer at White&Case.

As a result, "it will be harder for tech funds to raise money, and therefore harder for tech companies to finance themselves".