Investments in early-stage startups have more than quadrupled between the first semester of 2015 and the first six months of 2018, according to a report by Tech.eu developed in partnership with Stripe and Techstars, that has been published for the Web Summit 2019. Invested funds have reportedly increased from €875 million to €3.6 billion per semester in 3 years. It seems that Europe has positioned itself as one of the more promising ecosystems for the creation of startups. According to TechCrunch, the share of the U.S. in early-stage investment, which is less than €5 million per operation, has decreased.
In Europe, France and the U.K. receive a majority of investments. Between 2015 and 2018, 24.04% of the raised amount was injected in France and 24.59% in the U.K. Organizations that worked on the study attribute this development to the change in the attitude of French entrepreneurs who are in the process of creating a “Startup Nation”.
France is still behind the U.S. and the U.K. for investments in Series B and C. However, in the past few years, it has created a strong and well-supported ecosystem through which it got the largest number of contracted deals – 1,340 operations in three years in France versus 1147 in the U.K. But the average amount is weaker in France than the U.K. or Germany. These two countries receive only 12.65% of fewer than €5 million investments but are ranked at the top in EU in terms of the average amount invested in operations. In other words, Germany finances a fewer number of startups but invests heavily on the ones it considers important.
In terms of financing, not all sectors are affected equally. European early-stage investments are mainly focused on FinTech – €2.3 billion in three years, and MedTech, which receive €2.1 billion, according to the study.
To read the report in detail, visit https://tech.eu/product/seed-the-future-early-stage-report/.
(Sources: Les Echos, Tech.eu, Techstars)
Written by: Ilan Scialom