2025 may be a far better year for risk capital in Europe. According to a report, around $31 billion in “dry powder” is available for European early-stage firms.
Dealroom.co says over 4X the amount of cash available compared to ten years ago, and “Unicorn creation” has jumped by 10X.
The report states that $53.5 billion was raised in 2024, with Munich and Zurich leading the charge. Germany surpassed France for second place – after the UK – long the best market for VC activity.
UK funding experienced an 11% drop to $16.2 billion, creating opportunities for other countries, claims the report.
Germany bucked the trend with a 4% increase to $8.2 billion, with Munich emerging as a contender, overtaking Berlin as the third-most funded city.
Funding in Italy fell 4% from 2023, however there were more rounds in 2024 (345 compared to 324 in 2023) with Fintech, cyber security and healthtech raising money.
Belgium, the Netherlands, and Switzerland are said to have experienced significant funding growth – 25%, 12%, and 10% respectively.
Healthcare was the most active sector having raised $10.8 billion – up 13%.
Fintech firms also performed well, raising $8.7 billion, an increase from $7.9 billion in 2023.
“After 10 years of increasing venture capital investment in Europe, we’re seeing how the foundations of world-class talent, access to capital and supportive regulatory environment are producing a new generation of startups,” said Catherine Lenson, chief operating officer at Phoenix Court.
“Looking ahead to 2025, we believe that Europe will continue to build exceptional science and technology-backed companies solving real-world problems, increasingly led by second and third-time founders who understand what it takes to build a globally successful tech business.”
Top Countries by VC Investment |
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2024 |
2023 |
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1. UK – $18.9 billion |
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2. France – $9.1 billion |
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3. Germany – $7.9 billion |
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4. Sweden – $4.9 billion |
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5. Switzerland – $2.8 billion |
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6. Netherlands – $2.4 billion |
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7. Spain – $2 billion |
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8. Denmark – $1.4 billion |
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9. Norway – $1.3 billion |
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10. Italy – $1.2 billion |