The Swiss City of Zug is now regarded as the fastest growing tech hub in Europe. The city which is home to the Swiss Crypto Valley was the leading city in the recently published “State of European Tech” report by London-based global investment firm Atomico just last week. This ranking is a testament of the growth of the crypto and tech sectors in the city, with the high number of tech-related Meetup events conducted in the city showing just how strong the city is becoming technologically.
Zug continues to experience a boom in the tech sector
The report which was published last week revealed that the city has experienced a 177% increase in the number of tech-related events so far this year. The astonishing rise in the fortunes of the city has to do with the favorable regulations put in place by the Swiss government. Authorities and the parliament in the country have been putting together regulations that would help boost the financial innovation space in the country. They have also paid special attention to the crypto and blockchain sector as they believe that it would play a huge role in global finance.
According to the report, “There is a huge geographic diversity among the top 20 fastest-growing tech hubs in Europe, as measured by the annual growth in attendees to tech-related meetup events in those cities. Zug in Switzerland, home to a growing crypto community, ranked number one as the fastest-growing community overall.”
With Zug leading the way, the Russian city of Novosibirsk was not far behind. The city has experienced roughly 173 percent rise in the number of tech meetups over the past twelve months. The Belgian city of Ghent came third in the ranking, with The Hague in Netherland are far fourth, and Katowice in Poland completing the top five list.
Zug has seen a huge influx of tech and crypto startups over the past few months. However, it isn’t the only city to experience this, with Novosibirsk also reporting a high number of startup activity in the tech sector, most especially in, Akademgorodok which is regarded as the Siberian Silicon Valley. This tech hub has been recording successes especially from startups such as nanotechnology firm Ocsial, precision laser manufacturer Tekhnoscan and banking software company CFT.
The report further pointed out that Europe’s tech industry is the best hope for growth for a stalling European economy. It stated that “Europe’s tech (software) industry is growing 5x faster than the rest of the European economy in terms of Gross Value Added, a level that has accelerated in recent years.” This is an indication that the tech and crypto industry could play a vital role in the revitalization of the stagnant European economy.
Atomico pointed out that community-building, measured by the meetups of technological talent is critical if the region wants to continue attracting investors. So far this year, the density of meetups in Europe equated around 200 events per day throughout the year.
Switzerland sets the tone for Europe’s tech growth
The positive and active regulation of the crypto and sector industry in the country has seen it pull ahead of its peers in EU in terms of tech growth. The government has so far legalized the use of crypto while also formalizing crypto transactions in a range of contexts. Switzerland considered virtual currencies and the blockchain technology as crucial innovations that are already playing important roles in global finance. They are now focused on maintaining the growth of the industry in the country while also expanding the number of jobs the industry has to offer to its citizens.
Zug, home to the Swiss Crypto Valley is the leading tech city in the country. A report by CV Venture Capital in October revealed that the top 50 cryptocurrency and blockchain-related companies in Crypto Valley have a combined net worth of roughly USD 44 billion. This figure is a testament to the growth of the crypto valley in the country.
The report also pointed out that Zug now has roughly 600 companies that are crypto or blockchain-related, which is roughly twice the number present at this time last year. Amongst the leading crypto companies in the area, five of them are high net value companies including the world’s biggest bitcoin miner, Bitmain, Cardano, Dfinity, Ethereum, and Xapo.
Switzerland lags behind others in tech investment
Even though Switzerland is becoming a hot spot for tech startups, it still lags behind counterparts like U.K., Germany, and France in terms of tech destinations. It is also failed to be regarded as one of the top destinations for U.S. software engineers looking for jobs in Europe. To change that, Swiss state enterprises are using cryptocurrencies to attract more investments.