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Another record year for European tech investment

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Total capital invested into European tech in 2017 will comfortably exceed the record-breaking levels of 2016

Capital invested ($B) and # of deals, annual, 2012 to 2017

Europe has seen more than $3B invested per quarter for 11 consecutive quarters

Capital invested ($B) and # of deals per quarter

There’s capital out there for starting and scaling companies at a level that has not been seen in Europe historically. We’ve observed growth in the number of funds across early and growth stage. And with a maturing ecosystem, we’re seeing increased investment from US and Asia for scaling companies and a resurgence of the ‘mega-round’ with companies raising more than $100m.

Stephen Lowery

  • Silicon Valley Bank

There has been an increase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017

Capital invested ($M) and # of deals by round size

We are seeing the first indications of a stabilisation in the # of earliest stage funding rounds, reflecting a global trend

12%
decline in # of deals between $0-2M year-on-year

It’s nothing like when I launched, when my boss said to me ‘Brent, have you ever come across two people under 30 who’ve raised over $1million from a business plan?’ and we were like ‘No!’. Now we can think of hundreds of people - it’s much better now, there are many more support networks and there is a monetisation system out there for entrepreneurs.

Brent Hoberman

  • Founders Factory, Founders Forum, firstminute capital

The long-term investment trend in Europe reflects the remarkable expansion of its technology ecosystem

Trailing 12-month capital invested ($B) and # of deals by quarter

But there is still huge headroom. European countries still considerably lag others such as the US and Israel in terms of capital invested per capita. To pick just one example, Italy is a market with huge upside potential

Capital invested ($) per capita by country