Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Europe

Europe

Europe is projected to reach a Total Capital Raised of €17.30bn in the Venture Capital market market by 2024.
In the same year, Early Stage is expected to dominate the market with a projected market volume of €8.10bn.
When looking at global comparisons, the United States is anticipated to generate the most Capital Raised in 2024, with a figure of €125,300.0m.
In Europe, the United Kingdom leads in Venture Capital investments, attracting tech startups seeking funding and growth opportunities.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

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Analyst Opinion

The Venture Capital market in Europe is experiencing significant growth and development, driven by several key factors. Customer preferences are shifting towards innovative and disruptive technologies, leading to increased investment in startups and early-stage companies.

Additionally, the availability of funding and supportive government policies are further fueling the growth of the Venture Capital market in Europe. Customer preferences in Europe are increasingly focused on technology-driven solutions and disruptive innovations. Startups and early-stage companies that offer unique and innovative products or services are attracting significant attention from investors.

This preference for innovation is driving the growth of the Venture Capital market, as investors seek to capitalize on the potential returns from these high-growth companies. Trends in the market indicate a growing interest in sectors such as fintech, artificial intelligence, and biotechnology. These sectors are seen as having significant growth potential and are attracting substantial investment from Venture Capital firms.

The increasing adoption of digital technologies and the demand for advanced healthcare solutions are driving the growth of these sectors, making them attractive investment opportunities for Venture Capital investors. Local special circumstances in Europe also contribute to the development of the Venture Capital market. The presence of renowned universities and research institutions fosters a culture of innovation and entrepreneurship, providing a rich pipeline of startups and early-stage companies.

Additionally, the diversity of European markets allows for cross-border investments, enabling Venture Capital firms to access a wider range of investment opportunities. Underlying macroeconomic factors play a crucial role in the growth of the Venture Capital market in Europe. The overall economic stability and growth in the region provide a favorable environment for investment.

Additionally, supportive government policies, such as tax incentives and startup-friendly regulations, encourage Venture Capital investment and entrepreneurship. These factors create a conducive ecosystem for startups and early-stage companies to thrive, attracting more Venture Capital funding. In conclusion, the Venture Capital market in Europe is experiencing significant growth and development, driven by customer preferences for innovative and disruptive technologies, as well as the availability of funding and supportive government policies.

The focus on technology-driven sectors and the presence of renowned universities and research institutions further contribute to the growth of the market. Overall, the Venture Capital market in Europe is poised for continued expansion in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.