The EY auditors regularly analyze the venture capital market. The current results give every reason for optimism: The number of financing rounds in Europe increased by 58 percent to 6,693 in 2020 compared to 2019. A total of €36.5 billion went to startups – an increase of 17 percent. €21.2 billion flowed in the second half of 2020 alone.
However, investments were distributed very unevenly within Europe. The UK more than doubled the number of financing rounds to 2,113. The financing volume also increased by a quarter to €13.9 billion. German startups also completed more financing rounds—743 compared to 704 in the previous year—but raised only €5.3 billion, a decrease of 15 percent compared to 2019.
In the city rankings, London, with €10.5 billion, further extends its lead over Paris (€3.9 billion). Berlin (€3.1 billion), Stockholm (€1.5 billion), and Rome (€1.1 billion) follow. Munich ranks sixth in the city rankings as the best city that is not a national capital, with €1.0 billion.
Strong increase in investments in Germany
KPMG has also presented figures on the VC market, which show an extremely positive development in the second year since the coronavirus pandemic. According to the data, €105 billion ($127 billion) flowed into startups worldwide in the first quarter of 2021. This is more than double the amount of the previous year and more than ever before in a single quarter. Of this, €41 billion went to unicorn startups alone.
European startups secured €17 billion ($21 billion) in 1,430 rounds in the first quarter – also a record figure. The previous year, this figure was €7.3 billion ($8.8 billion). Of this, German startups received a record €2.6 billion ($3.1 billion). In the first quarter of 2020, German investments were around €1 billion ($1.2 billion). This represents a year-on-year increase of more than two and a half times the amount invested in Germany.
