European startup funding exceeds $ 100 billion for the first time: Atomico

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A 3D map showing the continent of Europe.

Constantine Johnny | Moments | Getty Images

London — Europe’s technology department is on fire.

Venture capital Atomico reports that start-ups in the region are on track to raise a record $ 121 billion this year, about three times the $ 41 billion raised in 2020. I’m going to.

This is the first time a European start-up has raised more than $ 100 billion in a year, highlighting the growing interest from investors in the fast-growing continental technology industry.

“This year was a decisive year for European technology,” Atomico’s Head of Insights Tom Wemeyer told CNBC. “I think what we see in numbers is that European technology is creating value faster than ever before.”

Based on findings from data firm Dealroom, Atomico’s latest annual State of European Tech Report states that the total equity value of European tech companies in the public and private markets will exceed $ 3 trillion for the first time in 2021. It shows that.

“It took decades for European technology to reach the first trillion stock value,” Wehmeier said.

“We reached that milestone just three years ago in December 2018. After that, it went from $ 1 trillion to $ 2 trillion in 24 months, and this year we added the latest trillions in 8 months. “

Currently, there are $ 321 billion “unicorn” companies in Europe, 98 of which were established this year. According to Atomico, there are also 26 so-called “unicorns” worth over $ 10 billion, such as Klarna, Revolut and Checkout.com.

According to Wemeier, tech start-ups have benefited significantly from the increased adoption of online services during the coronavirus pandemic.

Flywheel effect

According to Wehmeier, European tech is gaining momentum thanks to the “recycling” of talent from previous success stories to new ventures.

“People in a generation of companies, whether founders, builders or investors, are moving to the next generation,” he said.

This year was also a record year for “exit” such as mergers and acquisitions in Europe and initial public offerings. A total of $ 275 billion worth of corporate value was generated by the exits of European tech companies this year.

Notable deals include UK fintech companies wise Direct list of blockbusters Finnish food delivery company Wolt’s $ 8.1 billion sale To American rivals DoorDash..

Another key driver of growth for European start-ups is Tiger Global, Coatue, Softbank..

New competition has plagued European venture capitalists.For example, Atmiko Raised about $ 1.2 billion Baldenton Capital has secured nearly $ 1.3 billion this year for two new funds.

This helps create a so-called “flywheel” effect, where more talent and more capital leads to a virtuous cycle of growth, Wehmeier said.

Future tasks

However, not all European technology is rosy.

According to Atomico, early-stage companies are under pressure, even though venture-back companies are raising record levels in Europe.

Less than 1% of venture capital invested in the first nine months of 2021 was invested in companies established this year. This was usually in the early 1-3% range.

On the other hand, diversity remains an important issue. Citing a survey of more than 5,000 tech experts in the region, Atomico said that only 1.3% of European venture capital funding goes to start-ups in ethnic minority founding teams.

Another hurdle that Europe overcomes is the lack of allocation of pension funds to startup investments, Wehmeier said, which European pension funds allocate less than 0.02% of $ 3 trillion to venture capital funds.

European startup funding exceeds $ 100 billion for the first time: Atomico

Source link European startup funding exceeds $ 100 billion for the first time: Atomico

The post European startup funding exceeds $ 100 billion for the first time: Atomico appeared first on Eminetra.

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