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EU, Turkish and Israeli startups raised a record €25 billion in 2017 – up €8.6 billion (+52.4%) from 2016, which was also a record year increase.
These and other key numbers and trends are revealed in “Next Station: Europe,” a new industry report published by Tech.eu with support from the European Commission and Startup Europe.
The report notes a significant increase of the average deal size. (The number of deals fell to 3,398, down 1.7% from 2016, while the overall amounts of investment grew spectacularly.)
Among notable trends is also the internationalization of European tech investment, with foreign investors taking an increasing role in backing late-stage rounds. Thus, five of the seven largest rounds in 2017 were led by non-European players.
Investment volume and number of deals in Europe, Israel and Turkey by year
Source: Tech.eu, “Next Station: Europe”
“Five to ten years from now, we will look back at the period 2014-2018 as the time when the European tech scene started to mature, something that really shows when you look at the number of deals steadily declining but the round sizes going up significantly at the same time, resulting in more capital flowing to late-stage companies with a proven business model and the capacity to impact entire industries, and even the world,” writes Tech.eu chief editor Robin Wauters.
Europe is still far from matching the US and Chinese VC markets (around $85 billion and $40 billion, respectively, according to KPMG), but does extremely well when compared with Russia. Venture investment volume in this country does not even reach $1 billion each year.
Free downloads:
- “Next Station, Europe” – Latest tech investment trends and numbers in the EU and Israel, by Tech.eu
- “Startup investment and Innovation in Emerging Europe” – EWDN’s latest study on the Central and Eastern European scene (24 countries covered)
