European tech companies are increasingly stepping into the political arena, actively lobbying policymakers in Brussels and beyond to shape the future of the continent's burgeoning tech ecosystem. This significant shift is highlighted in venture capital firm Atomico's latest annual State of European Tech report, which not only tracks upward investment trends but also serves as a powerful advocacy piece for the industry.
The Shift Towards Political Advocacy
While the report confirms a positive trajectory for investment, its 2025 edition goes further, reflecting a broader strategic pivot by European startups and investors towards direct political engagement. Tom Wehmeier, a partner at Atomico and the firm’s head of intelligence, articulated this new imperative:
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.
Atomico, founded in 2006 by Skype co-founder Niklas Zennström, holds considerable sway within the European tech landscape. Its impressive portfolio includes industry giants like Aiven, DeepL, Klarna, Pipedrive, Stripe, and Supercell, lending significant weight to its advocacy efforts. The report outlines four key policy recommendations: 'Fix the friction,' 'Fund the future,' 'Empower talent,' and 'Champion risk' – all designed to foster a more favorable environment for innovation and growth.
Mirroring Global Trends and Influencing EU Policy
This proactive approach mirrors strategies employed by Big Tech, established industries, and their counterparts in the U.S. European tech firms are now systematically engaging in lobbying, both individually through dedicated public affairs teams and collectively via open letters that have successfully captured the attention of European institutions.
Many of Atomico’s recommendations resonate with ongoing discussions in both the startup community and Brussels policy circles. These include calls for a simplified pan-European company structure, often referred to as the '28th regime' (to overcome the current navigation of 27 national regimes), demands for reduced regulation, and broader considerations on competitiveness, echoing former European Central Bank president Mario Draghi’s 2024 report.
The growing influence of European tech lobbying is further evidenced by the unprecedented inclusion of a quote from European Commission President Ursula von der Leyen in Atomico’s 2025 report. Her statement, expressing a desire for 'the future of AI to be made in Europe,' underscores the high-level political attention now being directed towards the sector and the increasing sophistication of its advocacy.
The Critical '28th Regime' Debate
A prime example of this detailed advocacy is Atomico’s stance on the '28th regime.' The firm emphasizes the critical distinction between implementing it as a 'regulation' versus a 'directive.' As Atomico argues:
This is the difference between having teeth or not, with the latter representing a continuation of the status quo where rules can be interpreted country to country, instead of the uniformity tech companies need to thrive.
In EU law, regulations are directly binding across all member states, ensuring consistency, while directives allow individual countries flexibility in implementation, potentially leading to varied interpretations.
Broader Advocacy and Outreach
This level of detailed policy engagement isn't unique to Atomico. Organizations like France Digitale, a French startup and investor association, have also published 'non-papers' on the 28th regime, similar to advocacy documents produced by other lobbies, such as publications from the Europe Startup Nations Alliance (ESNA). However, Atomico’s approach, which includes video content and stage talks at major tech conferences like Slush, is strategically designed to reach both the tech ecosystem and policymakers simultaneously.
Challenges and Risks Ahead
Despite this growing momentum, European tech’s lobbying push faces potential hurdles. Paradoxically, there may be a lack of awareness or even opposition from various forces, as some recommendations might seem out of touch to the general public. Few Europeans, for instance, are primarily concerned with the absence of homegrown trillion-dollar companies.
While the counterargument posits that society as a whole suffers from lackluster growth, there's a recognized need for European tech's emerging lobbying efforts to better 'win hearts' and broaden public support. Alexandru Voica, head of corporate affairs and policy at London-based AI unicorn Synthesia, notes that a deep distrust of the tech industry in Europe necessitates this increased vocalization from large startups. He explained to TechCrunch:
Communications and policy are more important than 10 years ago because in Europe, there’s a deep distrust of the tech industry. A decade ago, [communications] was seen as something you could run out of marketing to help with product growth and brand awareness. Today, the work we do is much more focused on risk mitigation and reputation management, etc.
This intensified lobbying also carries inherent risks. Should the movement become too closely aligned with specific political parties, it could trigger backlash and undermine broader support. Nevertheless, the central message from Atomico resonates widely: 'Europe effectively stands at a crossroads,' implying that strategic advocacy is crucial for guiding its future trajectory.
