Investors invested record amounts in European startups last year: The total value of startup financing rose by 84 percent year-on-year to €19.2 billion. The number of financing rounds increased by 39 percent to 3,656. In the city rankings, Munich is listed alongside Berlin as one of the top 10 locations.
Despite Brexit, investments in British startups increased particularly strongly: The number of deals nearly doubled to 893, and the investment volume rose even more sharply, from €2.7 billion to €6.4 billion. German startups recorded an increase in funding from €2.3 billion to €4.3 billion, while French startups received almost €2.6 billion (previous year: €2.2 billion).
In the European city rankings, London leads the way with €4.9 billion and 547 financings. Berlin (€3.0 billion) and Paris (€2.0 billion) are in second and third place, respectively. However, the French capital, with 364 transactions, recorded significantly more financing rounds than Berlin, which recorded 232 deals. Basel and Stockholm follow in fourth and fifth place – measured by investment volume – with €1.0 billion and €595 million, respectively.
Munich ranks 9th in the city ranking
In addition to Berlin, Munich, a second German city, also ranks among the European top 10 – in ninth place. These are the results of the Startup Barometer conducted by the auditing and consulting firm EY (Ernst & Young). The study is based on an analysis of investments in European startups.
"More European companies than ever before received fresh capital last year. Investment amounts increased in most major European markets, and the number of financing rounds also increased almost everywhere,"
presents Peter Lennartz, Partner at EY.
"This shows that the European startup ecosystem continues to grow in strength. More and more young European companies are receiving fresh capital and can use it to further develop innovative business models or technologies."
More and more sums are flowing
On the investor side, interest in promising business ideas and innovative technologies remains enormous, Lennartz emphasizes. Venture capitalists also have large sums of money at their disposal:
"The willingness to invest even very large sums in startups has increased noticeably, which is likely also related to the positive development in the IPO market and the correspondingly improved exit opportunities. The number of financings with a volume of €100 million or more rose from seven to 23 across Europe compared to the previous year."
Of these, eleven transactions involved British, six German and three Swiss start-ups.
Here you can find the detailed version of the EY Start-up Barometer.
