During the first quarter of 2024, the European startup landscape showcased robust growth, securing a staggering sum of $32.4 billion in investments. This remarkable performance closely rivaled that of 2022, indicating a sustained resilience in the region's entrepreneurial ecosystem.

Notably, the investment trends underscored the prominence of cleantech initiatives, with substantial funding injections witnessed in countries like Sweden, France, and Germany. This surge in cleantech investments not only highlights a growing focus on sustainability but also signifies a strategic alignment with emerging global priorities.

Table of Contents

• Delving into Europe's Startup Funding Scene in Q1- …

• Standout European VC Equity Deals in Q1 2024

• Europe’s Top Countries in Startup Funding in Q1 20 …

• Europe’s Leading Sectors in Startup Funding During …

• Europe’s Major Investors in Startup Funding in Q1 …

Delving into Europe's Startup Funding Scene in Q1-2024

Despite experiencing a decline in the number of deals, dropping to 972 in Q1 2024 compared to 1200 and 1300 deals in the same period of 2023 and 2022 respectively, the European startup landscape showcased remarkable resilience. This resilience was evidenced by a notable 38% surge in funding during Q1 2024 (compared to Q1 2023) to an impressive $32.4 billion. Similarly, the average funding ticket in Q1 2024 reached $33.3 million, the highest in the first quarters of the last three years.

Notably, January 2024 emerged as the standout month during Q1 2024 in terms of funding value, with a staggering $18.4 billion secured and a total of 326 deals sealed.

Standout European VC Equity Deals in Q1 2024

In Q1 2024, significant deals were sealed within the venture capital landscape in Europe. One noteworthy example was the Dutch online grocery store, Picnic, which secured a substantial sum of $385 million in a Series E round. This infusion of funds was pivotal in driving Picnic's ambitious plans for expansion into key markets such as France and Germany. Noteworthy investors in this round included EDEKA, Germany's largest supermarket group, alongside the Bill and Melinda Gates Foundation Trust.

Additionally, the fast-charging EV network, Electra, successfully raised an impressive $330 million through a Series B round.

Other notable rounds include Aira, Travel Perk, FINN, 1X…

Europe’s Top Countries in Startup Funding in Q1 2024

Regarding the geographical distribution of funding in Q1 2024, Sweden emerged as the frontrunner, securing the lion's share with a substantial $13.3 billion raised. Following Sweden, France, Germany, and the UK garnered $6.2 billion, $3.9 billion, and $3.8 billion respectively.

On a parallel note, analyzing the allocation of the number of deals across countries reveals a slightly different landscape. The United Kingdom led the pack in terms of deal volume, boasting a total of 213 deals sealed during the quarter. Germany closely followed with 160 deals, while France came third with 80 deals.

This nuanced perspective emphasizes the varying dynamics at play within the European startup ecosystem, illustrating how different regions excel in attracting both funding and deal flow, contributing to the overall vibrancy and diversity of the European entrepreneurial landscape.

Europe’s Leading Sectors in Startup Funding During Q1 2024

In terms of funding allocation across industries during Q1 2024, cleantech emerged as the primary recipient, securing a commanding $13.4 billion. The transportation sector followed with $6.8 billion, while Fintech garnered $2.8 billion.

Conversely, when considering the number of deals executed within different industries, the software sector led the charge in Q1 2024 with 138 deals. Healthcare closely followed with 122 deals, underscoring its prominence within the startup landscape. Additionally, Fintech remained a key player in deal flow, securing 109 deals during the quarter.

Europe’s Major Investors in Startup Funding in Q1 2024

Throughout Q1 2024, the venture capital landscape in Europe witnessed the participation of a diverse array of investors, totaling 2980 contributors. BPI France led the pack by contributing to 18 deals, closely trailed by High-Tech Gründerfonds (HTG), which invested in 17 companies.

Despite prevailing geopolitical and economic constraints globally, the European startup scene enjoyed a great start in 2024. This optimistic beginning underscores the resilience and adaptability of startups in navigating and even thriving amidst the multifaceted challenges posed by the global landscape.

It is yet to be determined how European startups will perform for the remainder of the year, however, we remain optimistic that the region’s VC landscape will exhibit resilience and agility in successfully navigating these challenges.