Summary:
Europe's startup funding stabilized at $51 billion in 2024, down 5% from 2023.
UK led with $17 billion, followed by France and Germany.
Healthcare/Biotechnology received the most investment at over $11 billion.
AI startups raised $8.8 billion in 2024, marking 9% of global AI funding.
Q4 2024 saw $12 billion in funding, with late-stage funding up 25% year-over-year.
Funding to Europe-based startups saw a stabilization in 2024, reaching $51 billion, a 5% decrease from the $54 billion invested in 2023, according to Crunchbase data.
Key Insights
- Europe accounted for 16% of total global venture capital in 2024, down from 18% in the previous two years. It's important to note that some European startups have shifted their headquarters to the U.S., affecting these figures.
- The funding level in 2024 is still less than half of the market peak of $117 billion in 2021, with late-stage funding experiencing the most significant decline since the peak.
- Despite this, funding was still above pre-pandemic levels, including 2020.
UK, France, and Germany Lead
The UK emerged as the leading country, representing about one-third of the funding, totaling around $17 billion. France and Germany followed, raising $7.9 billion and $7.6 billion, respectively. Switzerland was also notable with $2.8 billion.
Sector Highlights
- Healthcare/Biotechnology led investments with over $11 billion. Notable companies included Isotopen Technologien München, Flo Health, and Oura.
- The Financial Services sector followed with $9.6 billion, featuring companies like Abound, SeQura, and Monzo.
- AI startups raised $8.8 billion, accounting for 9% of global AI funding, with significant rounds from Wayve, Mistral AI, and Helsing.
Quarterly Performance
The fourth quarter of 2024 saw $12 billion in funding, marking a 13% increase quarter-over-quarter but remaining flat year-over-year. Late-stage funding reached $5.2 billion, while early-stage and seed funding recorded $5.1 billion and $1.6 billion, respectively.
Summary of Trends
- Overall, Europe's startup funding remained stable year-over-year, contrasting with North America, which saw a spike due to AI sector funding and numerous billion-dollar rounds.
- Seed and early-stage funding remained robust, with totals exceeding 60% of the market peak, while late-stage funding was around 31%.
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