Data Visualization
Six charts highlighting Europe's outstanding year for VC
January 24, 2022
Europe and Israel saw an unprecedented level of VC activity in 2021 as the ongoing pandemic continued to drive investors toward tech companies.
Our 2021 Annual European Venture Report breaks down the data in detail, showcasing the key trends across dealmaking, geographies, exits, fundraising and more. Here's a snapshot of Europe and Israel's ecosystems in 2021.
European and Israeli startups raised a total of €102.9 billion (about $116.4 billion) last year, an increase of nearly 120% from 2020. Despite continued uncertainty from the pandemic, deal count also reached a new record with an estimated 10,583 transactions.
The UK and Ireland accounted for the majority of capital invested with a slight increase in their percentage of the continent's total funding, despite a gradual decline over the previous four years following the Brexit vote. DACH and France & Benelux retained their positions as the second and third largest European VC regions, although the latter did see a dip in its share of Europe and Israel's overall capital invested.
The European ecosystem saw a glut of outsized rounds and new unicorns in 2021 driven by an increase in late-stage funding, which now accounts for 70% of overall deal value. Although early-stage rounds accounted for significantly less of total funding, first-time financings also swelled in size after having previously been relatively flat.
VC deal value with participation from nontraditional investors—including mutual funds, PE investors and sovereign wealth funds—reached a record €78.4 billion last year. VC offered more pandemic resiliency and high-growth prospects compared with other asset classes thus driving investors to seek more exposure.
Founders and investors rushed to exit last year at an unrelenting pace with exit value reaching an astonishing €142.5 billion—more than triple the previous record in 2018. IPOs accounted for the majority of the value with high-profile listings from the likes of Wise, Deliveroo and Auto1 Group.
Capital raised for VC funds reached the second-largest calendar year total, bested only by 2017. Strong return profiles and the increased demand for tech investments have led to bigger fund sizes. However, more capital is concentrated in fewer hands as fund count dropped to its lowest level since 2013.
Featured image by Anna Blazhuk/Getty Images
Our 2021 Annual European Venture Report breaks down the data in detail, showcasing the key trends across dealmaking, geographies, exits, fundraising and more. Here's a snapshot of Europe and Israel's ecosystems in 2021.
1. Capital invested crosses €100 billion threshold for the first time
European and Israeli startups raised a total of €102.9 billion (about $116.4 billion) last year, an increase of nearly 120% from 2020. Despite continued uncertainty from the pandemic, deal count also reached a new record with an estimated 10,583 transactions.
2. The UK continues to reign supreme over Europe's VC ecosystem
The UK and Ireland accounted for the majority of capital invested with a slight increase in their percentage of the continent's total funding, despite a gradual decline over the previous four years following the Brexit vote. DACH and France & Benelux retained their positions as the second and third largest European VC regions, although the latter did see a dip in its share of Europe and Israel's overall capital invested.
3. Larger rounds take a bigger slice of the pie
The European ecosystem saw a glut of outsized rounds and new unicorns in 2021 driven by an increase in late-stage funding, which now accounts for 70% of overall deal value. Although early-stage rounds accounted for significantly less of total funding, first-time financings also swelled in size after having previously been relatively flat.
4. Nontraditional investor participation on the rise
VC deal value with participation from nontraditional investors—including mutual funds, PE investors and sovereign wealth funds—reached a record €78.4 billion last year. VC offered more pandemic resiliency and high-growth prospects compared with other asset classes thus driving investors to seek more exposure.
5. Public listings dominate exit value
Founders and investors rushed to exit last year at an unrelenting pace with exit value reaching an astonishing €142.5 billion—more than triple the previous record in 2018. IPOs accounted for the majority of the value with high-profile listings from the likes of Wise, Deliveroo and Auto1 Group.
6. VC fundraising presents a mixed bag
Capital raised for VC funds reached the second-largest calendar year total, bested only by 2017. Strong return profiles and the increased demand for tech investments have led to bigger fund sizes. However, more capital is concentrated in fewer hands as fund count dropped to its lowest level since 2013.
Related read: 2021 Annual European Venture Report
Featured image by Anna Blazhuk/Getty Images
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