Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Southern Europe

Southern Europe

The country in Southern Europe is expected to see the Total Capital Raised in the Venture Capital market market reach €2.15bn by 2024.
Within this market, Early Stage is set to dominate with a projected market volume of €1.14bn in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised, with a figure of €125,300.0m in 2024.
In Southern Europe, Spain is experiencing a surge in Venture Capital investments, particularly in tech startups, signaling a growing entrepreneurial ecosystem.

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

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Analyst Opinion

The Venture Capital market in Southern Europe is experiencing significant growth and development.

Customer preferences: Investors in Southern Europe are increasingly attracted to the Venture Capital market due to the potential for high returns on investment. Startups in the region are known for their innovation and disruptive business models, which have the potential to generate substantial profits. Additionally, the relatively low valuations of startups in Southern Europe compared to other regions make them an attractive investment opportunity for venture capitalists.

Trends in the market: One of the key trends in the Venture Capital market in Southern Europe is the increasing number of investments in technology startups. Southern Europe has seen a surge in the number of startups in sectors such as fintech, e-commerce, and software development. This trend is driven by the region's strong talent pool, favorable regulatory environment, and growing entrepreneurial ecosystem. Another trend in the market is the rise of impact investing. Investors in Southern Europe are increasingly interested in supporting startups that have a positive social or environmental impact. This trend is driven by a growing awareness of sustainability and social responsibility among investors, as well as the potential for long-term financial returns.

Local special circumstances: Southern Europe has a unique set of circumstances that contribute to the development of the Venture Capital market. The region has a rich history of entrepreneurship and innovation, with a number of successful startups and tech companies emerging from countries such as Spain, Italy, and Portugal. This entrepreneurial culture, combined with a supportive government and regulatory framework, creates a favorable environment for venture capital investment. Additionally, Southern Europe has a large pool of highly skilled and educated professionals, particularly in the technology sector. This talent pool provides startups with the necessary expertise and resources to develop and scale their businesses, making them attractive investment opportunities for venture capitalists.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the Venture Capital market in Southern Europe. The region has experienced a steady economic recovery in recent years, following the global financial crisis. This has led to increased investor confidence and a greater willingness to take risks on early-stage startups. Furthermore, Southern Europe has benefited from the availability of European Union funding and support for startups and innovation. The EU's investment programs, such as the European Investment Fund, have provided a significant boost to the Venture Capital market in the region, attracting both domestic and international investors. In conclusion, the Venture Capital market in Southern Europe is experiencing significant growth and development. Customer preferences for high returns and innovative startups, along with trends in technology and impact investing, are driving this growth. The region's entrepreneurial culture, supportive government policies, and talented workforce contribute to its attractiveness as an investment destination. Additionally, the macroeconomic factors of economic recovery and EU funding further support the growth of the Venture Capital market in Southern Europe.

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.