Europe has struggled to keep up with the U.S. in creating companies with $100 billion-plus market capitalization. The first one came this year when German software firm SAP which saw its market capitalization rise to $100 billion.
Surprisingly, Europe has more public tech companies than both China and the U.S. with 914 listed firms. But they are typically smaller valuations with 615 of those companies commanding market capitalization of less than $100 million, according to a report released on Tuesday by London-based VC (venture capital) firm Atomico. In the U.S., only 197 companies have market caps of less than $100 million.
On the upper end of the scale, the U.S. has 17 listed firms valued over $50 billion versus just one in Europe - software giant SAP. But this could change, according to Niklas Zennstrom, who co-founded Skype and is also the founder of investment firm Atomico.