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  • 📈 Europe’s Unicorn Boom: A Tech Resurgence

📈 Europe’s Unicorn Boom: A Tech Resurgence

HWS Hunts Buyer to Save the Slice

December 31, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Europe’s Unicorn Boom: A Tech Resurgence

  • HWS Hunts Buyer to Save the Slice

  • China’s EVs Loom, Europe Scrambles for Deals

The summary: Europe’s tech ecosystem is roaring back to life in 2024, churning out unicorns across AI, fintech, and sustainability, proving it’s got the brains and the brawn to rival global giants.

European Startup Ecosystem Rebound in 2024: Key Takeaways:

  • Unicorn Boom: Europe minted 8 new unicorns by mid-2024, already outpacing 2023’s total. The UK leads the charge with over 30 unicorns, solidifying its spot as the world's second-most-funded tech hub, raising $6B in H1 alone.

  • Generative AI Leads the Pack: VC cash flows like fine wine into generative AI ($3B) and sustainable energy ($5.7B), with the latter fueling hydrogen breakthroughs. Fintech and software remain the continent’s star sectors.

  • Diverse Dynamos: From AI auditors (DataSnipper) to quantum computing wizards (Quantinuum) and mapless self-driving pioneers (Wayve), Europe’s new unicorns highlight innovation across industries.

  • Global Context: Europe now hosts 14% of the world’s 1,400+ unicorns, tied with China but still trailing the US’s staggering lead. It's a solid foothold in the race for tech supremacy.

Why it matters: Europe’s tech scene is back in the saddle, proving it can still punch above its weight in the global innovation race. With unicorns cropping up faster than you can say "venture capital," the continent is staking its claim as a serious contender in AI, sustainability, and beyond. It’s a reminder that while the US may hog the spotlight, Europe’s quietly crafting the next big thing—like a genius in the corner of the pub sketching the future on a napkin.

The summary: Pizza Hut's UK dine-in operator is cooking up a rescue deal to tackle rising costs and debt, promising a saucy shake-up for the casual dining scene.

The details:

  • Pizza Hut's UK dine-in operator, HWS, seeks a saviour: In advanced talks with buyers, HWS plans to select a bidder by January to navigate rising costs and secure its future, with Interpath Advisory steering the process.

  • Chancellor’s slice of the pie: Budget changes, including NICs and living wage hikes, will add £4m to annual costs, denting over half of last year's pre-tax earnings.

  • Past slices and present crunches: HWS, under Jens Hofma, underwent a £100m management buyout in 2018 and restructured its debt this year to pause repayments, extend terms, and secure its franchise agreement until 2032.

  • Pizza pressure mounts: Following a decade of closures, industry struggles, and a COVID-19 CVA, HWS feels the heat of inflation, mortgage woes, and economic slowdown while running 140 dine-in sites.

Why it matters: The fate of HWS shows how even iconic brands like Pizza Hut aren’t immune to the rising costs and economic squeeze reshaping the UK’s dining scene. With wages, taxes, and debt piling higher than a meat feast, it’s a stark reminder of how precarious the casual dining sector has become. Whether a rescue deal or a takeover, the outcome will set the tone for the future of Britain’s dine-in experience—or what’s left of it.

The summary: Europe’s carmakers are scrambling to meet tough new emissions rules, but with a flood of affordable electric cars on the horizon, the race is on to save the planet, jobs, and your wallet—all before China steals the show!

The details:

  • Electric deals finally roll in: After years of drought, affordable EU-made electric cars under €25,000 are flooding the market, just as stricter emissions rules loom, forcing carmakers to pick up the pace—or face hefty fines.

  • Bumpy ride for carmakers: Europe’s EV market is cooling, hit by subsidy cuts in Germany and France, while global rivals like Tesla zoom ahead of emission targets. Meanwhile, factory closures and job cuts make headlines across the continent.

  • Rules vs. reality: The auto industry is pushing back on tough EU emissions targets, warning of dire costs and stalled transitions, but campaigners argue that loosening the rules risks letting Europe fall behind China’s EV juggernaut.

  • 2025: The EV revival? A strategic slowdown in model releases suggests carmakers are saving their big guns for next year, setting the stage for a sales surge in 2025—if the EU doesn’t drop the ball on regulation.

Why it matters: Europe’s car industry is at a crossroads, caught between saving jobs and saving the planet, while trying not to lose ground to China’s EV giants. Stricter rules could spark innovation or sink manufacturers already skidding on thin ice. For drivers, it means cheaper electric options might finally arrive—if the whole system doesn’t stall first.