Europe Venture Capital Market Size (2024 - 2029)

The European venture capital market has demonstrated resilience and growth, with a significant increase in investment despite the challenges posed by the global pandemic. The market size has expanded as venture capitalists continue to show strong interest in the region's startups, driven by the rising demand for digital services. This growth is evident across various European cities, highlighting the continent's rich entrepreneurial talent and innovation hubs. The ability of the venture capital industry to secure increased funding, even during economic downturns, underscores its pivotal role in supporting the region's startup ecosystem and fostering future innovation.

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Market Size of Europe Venture Capital Industry

Europe Venture Capital Market Size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 3.00 %
Market Concentration Medium

Major Players

Europe Venture Capital Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Venture Capital (VC) Market Analysis

The record amount of venture capital investment in Europe this year suggests that the appetite for the region's startups remains strong despite the global pandemic. Including investment in Israel, VCs invested $46 billion in the continent as of December. The reason being that many startups have flourished at a time when remote digital services from food delivery to ecommerce are in more demand than ever. Identifying and nurturing start-ups today is essential for continued innovation in Europe, as well as laying the groundwork for a better tomorrow.

2020 was a challenging year for people, companies and countries across Europe. European venture capital did not escape the effects of COVID-19 but responded with characteristic strength. The industry secured another year of investment growth as funding for European start-ups and scale-ups rose for the eighth year running to Euro 12 billion. Moreover, as this report clearly illustrates, investment flowed across the continent - from London, Paris and Berlin to Catalonia, Copenhagen and Dublin. Europe is packed with entrepreneurial talent and populated throughout with hubs that are driving start-up excellence.

European VCs have raised more in 2021 to date than in any previous year. European VCs have raised Euro 14 billion in new funds in 2021, compared to Euro 12.6 billion in full year 2020, a previous record. Despite economies falling into recessions, unemployment rising drastically across numerous different sectors and multiple stimulus measures being announced by pretty much all of the European nations, venture deal value and activity hasn't really reflected impacts of COVID-19.

Europe Venture Capital (VC) Industry Segmentation

Venture capital is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth.

A complete background analysis of the Europe venture capital market, which includes an assessment of the parental market, emerging trends by segments, and regional markets. Significant changes in market dynamics and market overview are also covered in the report.

The Europe Venture Capital Market is segmented by investments in country (UK, Germany, Finland, Spain, and Others), by the size of the deal (angel/seed investing, early-stage investing, and late-stage investing), and by the industry of investment (fintech, pharma & BioTech, consumer goods, industrial/energy, IT hardware & services, and other industries).

Investments - By Country
UK
Germany
Finland
Spain
Others
Deal Size - By Stage of Investment
Angel/Seed Investing
Early-stage Investing
Later-stage Investing
By Industry of Investment
Fintech
Pharma and Biotech
Consumer Goods
Industrial/Energy
IT Hardware and Services
Other Industries of Investment
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Europe Venture Capital Market Size Summary

The European venture capital market has demonstrated resilience and growth, even in the face of global challenges such as the COVID-19 pandemic. The region has seen a significant influx of capital, driven by the burgeoning demand for digital services like e-commerce and food delivery. This has led to a thriving startup ecosystem across various European cities, from London and Paris to Berlin and beyond. The market has attracted substantial interest from American investors, who are drawn by the lower company valuations in Europe and the potential for these startups to expand into the lucrative U.S. market. The involvement of non-traditional investors, including sovereign wealth funds and high-net-worth individuals, has further bolstered the market, increasing the percentage of deals with U.S. and Asian participation.

The fintech sector, in particular, has been a standout performer, with significant investments flowing into consumer fintechs and digital payment schemes. Despite the challenges posed by the pandemic, the sector has shown remarkable growth, with startups pursuing platform-based approaches and acquiring banking licenses to expand their offerings. The competitive landscape of the European venture capital market is marked by the presence of both international and domestic players, creating opportunities for further growth. Initiatives like France's new fund to boost technological startups and strategic shifts by firms like Sequoia Capital highlight the dynamic nature of the market, which is poised for continued expansion in the coming years.

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Europe Venture Capital Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

      1. 1.1.1 Venture Capital 1010 Insights on Typical VC Fund Structure and How It Works

      2. 1.1.2 A Brief on Types of Venture Capital Financing

      3. 1.1.3 Regulatory Landscape of the Industry

    2. 1.2 Insights on Fund Raising of Venture Capital Firms in Europe

      1. 1.2.1 Insights on University Endowment Funds Investing in Venture Capital Funds

      2. 1.2.2 Insights on Venture Fund of Funds

    3. 1.3 Insights on VC Financing and Vertical Analysis in Europe

      1. 1.3.1 Deal Size of VC Financing by Series

      2. 1.3.2 Insights of Major Deals Across Industries and Top 10 - 20 Leading VCs Across Sectors

      3. 1.3.3 Key Trends in the Investment Patterns of VC Firms in the Recent

      4. 1.3.4 VC Funding on the Rise in Biotech/Pharma Sectors

      5. 1.3.5 Market Outlook on Current and Future Spending of VC Firms

      6. 1.3.6 Insights on Blockchain-related VC Financing

      7. 1.3.7 A Brief on Rising ESG Investing by VC firms

      8. 1.3.8 How Brexit Shaped the VC Investment aross Europe

    4. 1.4 Insights on the Exit Landscape of VC Funding in Europe

    5. 1.5 Regulatory Landscape Governing the Venture Fund of Funds in Various Economies

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION AND OUTLOOK

    1. 2.1 Investments - By Country

      1. 2.1.1 UK

      2. 2.1.2 Germany

      3. 2.1.3 Finland

      4. 2.1.4 Spain

      5. 2.1.5 Others

    2. 2.2 Deal Size - By Stage of Investment

      1. 2.2.1 Angel/Seed Investing

      2. 2.2.2 Early-stage Investing

      3. 2.2.3 Later-stage Investing

    3. 2.3 By Industry of Investment

      1. 2.3.1 Fintech

      2. 2.3.2 Pharma and Biotech

      3. 2.3.3 Consumer Goods

      4. 2.3.4 Industrial/Energy

      5. 2.3.5 IT Hardware and Services

      6. 2.3.6 Other Industries of Investment

Europe Venture Capital Market Size FAQs

The Europe Venture Capital Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)

360 Capital, AAC Capital, Accel Partners, Active Venture and Acton Capital are the major companies operating in the Europe Venture Capital Market.

European VC Market Report Snapshots

Europe Venture Capital Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)