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Europe

Introduction

Over the past two decades, Europe’s tech scene has undergone a seismic shift, moving from an outsider to a global challenger.

The region is home to many of the world’s leading startup hubs such as London, Paris and Berlin to name a few.

Venture Capital

By stage

Venture capital investment into European startups reached $63 billion in 2023 invested across over 10K funding rounds, above pre-pandemic levels though down against the highs seen in 2021 and 2022.

Europe’s share of global venture capital increased from ~5% seen two decades ago to 20% in 2023. At the early stage level, Europe now raises a third of global seed funding.

Early stage

Early stage investment in 2023 reached $17.4B, up 20% on pre-pandemic levels in 2019 though down 19% on 2022.

Access early-stage funding rounds into European startups here on the Dealroom platform.

Breakout stage

Breakout stage investment was $24B, up 26% on pre-pandemic levels in 2019 though down 31% on 2022.

Access breakout-stage funding rounds into European startups here on the Dealroom platform.

Scaleup stage
Almost all the fall in European venture capital has been at late-stage.

Late stage investment reached $21.5B, up 45% on pre-pandemic levels though megarounds saw the sharpest decline compared to other funding round sizes, down 51%, both in volume and round count.

Access scaleup-stage funding rounds into European startups here on the Dealroom platform.

By business model

A growing share of startups headquartered in Europe trend have utilised a SaaS business model, with half of existing startups in the most recent year utilising this business model, up nearly double from a decade ago.

By industry

In 2023, the three dominant sectors for VC funding in Europe are Energy, Health and Transportation startups.

By country

In terms of leading national ecosystems in the European continent, the UK, France and Germany have raised the most VC investment in Europe over the past decade.

By city

London, Paris and Berlin are the leading city ecosystems in the European continent, but startup innovation is becoming increasingly distributed in Europe across other notable hubs which you can explore below.

Investors

Top investors in Europe

Explore the data for the most active investors into the European startup ecosystem as well as the most active European investors here on the Dealroom platform.

European venture capital is increasingly competitive. The number of unique investors active in Europe doubled between 2020 and 2022.

The European VC investor landscape has been thriving over the past three years, with a significant increase in the number of investors in all investment stages. The pre-seed stage witnessed the fastest growth, followed by the series A and series B+ stages, respectively.

This trend showcases a positive outlook for the European start-up ecosystem, indicating that there is a growing interest and support for start-ups at all investment stages.

Unique active investors

Explore over 4k active investors in Europe here on the Dealroom platform.

Unicorns

Europe is now home to 440+ unicorns, distributed across over 65 cities, representing a diverse range of industries, from fintech to health tech, and more.

These companies have attracted significant investment from global investors, helping them to expand their operations and compete with their American and Chinese counterparts.

Related content

Taxonomy: To learn how Dealroom defines its entities, taxonomy, filters and more, click here

Report: Read our regular reports on European startup ecosystems here.

Dealroom Data: Explore 90k+ funded startups headquartered in Europe