The number of investments in European startups reached a record high in the first half of the year. Three countries dominate the investment activity. Munich makes the list of the most important startup hotspots.
In the first six months of this year, €10.2 billion flowed into European startups through 1,995 deals. This represents a 19 percent increase in the number of deals and a 27 percent increase in investment volume compared to the same period last year. The figures come from a study by the consulting firm Ernst & Young, published semi-annually since 2015. Never before have so many investments been recorded in Europe within a six-month period. The investment volume, however, reached only the second-highest level. In the second half of 2017, €11.1 billion flowed into young companies in Europe.
Great Britain, Germany and France dominate Europe's investment activity
Despite the impending Brexit, the most money went to companies in the British Isles in the last six months, with €3.1 billion. German startups followed with €2.4 billion and France with €2.0 billion. The UK even significantly increased its lead over Germany compared to the previous year: In the first half of 2017, British startups secured €2.4 billion, while German startups secured €2.1 billion. The UK also leads in the number of startup investments with 514 financing rounds. France follows in second place with 333, followed by Germany with 273. This means that the three major European startup nations account for more than half of all investments and almost three-quarters of the deal volume.
Munich among Europe's startup hotspots
The country ranking is also reflected in the comparison of capital cities: In terms of the number of deals, London (297) leads, followed by Paris (197) and Berlin (123). As with the nations, the German capital leads the French capital in terms of investment volume: €2.0 billion flowed to London, €1.6 billion to Berlin, and €1.4 billion to Paris. Munich lands among the top ten European startup hubs in both rankings. The Bavarian capital ranks ninth in terms of deal volume with 35 individual investments and sixth in terms of deal volume with €215 million. The full study is also available online.
