Europe
Hot or not: Where European VC funding went in 2021
January 4, 2022
Venture capital investment in Europe and Israel crossed the €100 billion (around $113 billion) mark for the first time ever in 2021, as some of the region's biggest economies doubled their fundraising totals from the previous year.
According to PitchBook data, startups in the region raised €100.4 billion across 9,419 deals as of Dec. 20, 2021, up 115% and 6%, respectively, from 2020.
Not only has investor confidence rebounded from the initial shock of the pandemic, but many startups are continuing to benefit from increased demand for remote digital products and services under the new normal.
Surging interest from foreign and nontraditional investors in Europe's maturing startup ecosystem has also driven up round sizes resulting in an all-time peak for valuations and an unprecedented number of newly created unicorns.
In 2021, most jurisdictions saw both the quantity and size of deals grow, but some more than others. Less established ecosystems in the Baltics and Central and Eastern Europe in particular registered a dramatic increase in funding as the shift to remote work lessened the importance of setting up shop in traditional VC hubs.
See the map below for details on how VC investment broke down across seven regions in 2021 according to PitchBook data.
Startups in the UK, which is Europe's most developed VC market, raised the most in 2021 out of all European countries. Many of the biggest deals came from the fintech sector, for which London is the biggest European hub and hopes to remain so even post-Brexit. Challenger bank Revolut hit a $33 billion valuation with an $800 million Series E, while rival Monzo raised a reported $500 million.
Other notable rounds over the past year include virtual events startup Hopin's $450 million Series D and digital pet insurer Bought By Many's $350 million fundraise which earned it unicorn status.
Appetite for Europe's second-largest VC hub showed no signs of slowing this year with €16.5 billion invested in German startups. Celonis became Germany's most valuable VC-backed company with a $1 billion Series D, valuing the process mining software provider at over $11 billion. Rapid e-grocer Gorillas raised over $1.2 billion this year across two rounds, while neobroker Trade Republic secured $900 million at a $5 billion-plus valuation.
Outside of Germany, Austria also saw large fundraises from the likes of digital investment platform Bitpanda and edtech startup GoStudent, both of which raised Series Cs worth $263 million and $244 million respectively. Swiss cybersecurity startup Acronis landed $250 million at an approximate $2.5 billion valuation.
France saw €9.9 billion invested this year, boosted by government attempts to bolster its startup ecosystem with new funds to support tech investments. The biggest round came courtesy of fantasy soccer startup Sorare, which raised a $680 million Series B. Ecommerce platform Mirakl secured $555 million in Series E funding, while DIY marketplace ManoMano pulled in $355 million.
Amsterdam continued to solidify its status as a VC powerhouse with massive rounds including payments provider Mollie's $800 million Series C and a $128 million investment for e-bike brand VanMoof. Cloud communication company MessageBird extended its Series C from $200 million to $1 billion.
Elsewhere in the region, Brussels-based cloud data intelligence platform Collibra picked up a $250 million Series G. Luxembourg-headquartered Factory14, which acquires and operates digital businesses, secured a $200 million seed investment.
Sweden is home to several of Europe's biggest startup success stories. Among them is buy now, pay later unicorn Klarna, which raised over $1.6 billion this year and was most recently valued at $45.6 billion. The largest deal, however, was lithium-ion battery maker Northvolt's $2.75 billion private placement.
Finnish food delivery startup Wolt received $530 million this year and is now set to be taken over by DoorDash in a €7 billion deal. In neighboring Norway, online grocery startup Oda raised $265 million. Across the strait, Copenhagen-based Pleo reached unicorn status in 2021 with a $150 million Series C.
Israeli VC investment activity was up 127% in 2021, crossing the €10 billion mark. The country saw several new unicorns minted, such as cybersecurity startup Wiz, which was most recently valued at $6 billion following its $250 million Series C. Other highlights from the year include cultivated meat company Future Meat's $347 million Series B and ecommerce marketing startup Yotpo's $230 million Series F.
Lithuania saw the biggest increase in capital invested this year—albeit from a low starting point—with an increase of 990% to €351.2 million. Most of the money came from online secondhand clothes retailer Vinted's €250 million fundraise. Estonian ridehailing startup Bolt also accounted for a large part of the region's VC capital, raising €620 million across two rounds with the latest valuing it at over €4 billion.
Nearly 80% of all VC capital invested in Southern Europe this year went into just two countries: Spain and Italy. Notable deals from the region included Barcelona-based on-demand delivery company Glovo's €450 million Series F and Madrid-headquartered temporary staffing agency Jobandtalent's $500 million Series E—the largest round yet for an HR tech startup in Europe.
Featured image by mikkelwilliam/Getty Images
According to PitchBook data, startups in the region raised €100.4 billion across 9,419 deals as of Dec. 20, 2021, up 115% and 6%, respectively, from 2020.
Not only has investor confidence rebounded from the initial shock of the pandemic, but many startups are continuing to benefit from increased demand for remote digital products and services under the new normal.
Surging interest from foreign and nontraditional investors in Europe's maturing startup ecosystem has also driven up round sizes resulting in an all-time peak for valuations and an unprecedented number of newly created unicorns.
In 2021, most jurisdictions saw both the quantity and size of deals grow, but some more than others. Less established ecosystems in the Baltics and Central and Eastern Europe in particular registered a dramatic increase in funding as the shift to remote work lessened the importance of setting up shop in traditional VC hubs.
See the map below for details on how VC investment broke down across seven regions in 2021 according to PitchBook data.
UK & Ireland
Startups in the UK, which is Europe's most developed VC market, raised the most in 2021 out of all European countries. Many of the biggest deals came from the fintech sector, for which London is the biggest European hub and hopes to remain so even post-Brexit. Challenger bank Revolut hit a $33 billion valuation with an $800 million Series E, while rival Monzo raised a reported $500 million.
Other notable rounds over the past year include virtual events startup Hopin's $450 million Series D and digital pet insurer Bought By Many's $350 million fundraise which earned it unicorn status.
DACH
Appetite for Europe's second-largest VC hub showed no signs of slowing this year with €16.5 billion invested in German startups. Celonis became Germany's most valuable VC-backed company with a $1 billion Series D, valuing the process mining software provider at over $11 billion. Rapid e-grocer Gorillas raised over $1.2 billion this year across two rounds, while neobroker Trade Republic secured $900 million at a $5 billion-plus valuation.
Outside of Germany, Austria also saw large fundraises from the likes of digital investment platform Bitpanda and edtech startup GoStudent, both of which raised Series Cs worth $263 million and $244 million respectively. Swiss cybersecurity startup Acronis landed $250 million at an approximate $2.5 billion valuation.
France & Benelux
France saw €9.9 billion invested this year, boosted by government attempts to bolster its startup ecosystem with new funds to support tech investments. The biggest round came courtesy of fantasy soccer startup Sorare, which raised a $680 million Series B. Ecommerce platform Mirakl secured $555 million in Series E funding, while DIY marketplace ManoMano pulled in $355 million.
Amsterdam continued to solidify its status as a VC powerhouse with massive rounds including payments provider Mollie's $800 million Series C and a $128 million investment for e-bike brand VanMoof. Cloud communication company MessageBird extended its Series C from $200 million to $1 billion.
Elsewhere in the region, Brussels-based cloud data intelligence platform Collibra picked up a $250 million Series G. Luxembourg-headquartered Factory14, which acquires and operates digital businesses, secured a $200 million seed investment.
Nordics
Sweden is home to several of Europe's biggest startup success stories. Among them is buy now, pay later unicorn Klarna, which raised over $1.6 billion this year and was most recently valued at $45.6 billion. The largest deal, however, was lithium-ion battery maker Northvolt's $2.75 billion private placement.
Finnish food delivery startup Wolt received $530 million this year and is now set to be taken over by DoorDash in a €7 billion deal. In neighboring Norway, online grocery startup Oda raised $265 million. Across the strait, Copenhagen-based Pleo reached unicorn status in 2021 with a $150 million Series C.
Israel
Israeli VC investment activity was up 127% in 2021, crossing the €10 billion mark. The country saw several new unicorns minted, such as cybersecurity startup Wiz, which was most recently valued at $6 billion following its $250 million Series C. Other highlights from the year include cultivated meat company Future Meat's $347 million Series B and ecommerce marketing startup Yotpo's $230 million Series F.
Central and Eastern Europe
Lithuania saw the biggest increase in capital invested this year—albeit from a low starting point—with an increase of 990% to €351.2 million. Most of the money came from online secondhand clothes retailer Vinted's €250 million fundraise. Estonian ridehailing startup Bolt also accounted for a large part of the region's VC capital, raising €620 million across two rounds with the latest valuing it at over €4 billion.
Southern Europe
Nearly 80% of all VC capital invested in Southern Europe this year went into just two countries: Spain and Italy. Notable deals from the region included Barcelona-based on-demand delivery company Glovo's €450 million Series F and Madrid-headquartered temporary staffing agency Jobandtalent's $500 million Series E—the largest round yet for an HR tech startup in Europe.
Featured image by mikkelwilliam/Getty Images
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