TLDR:
- European energy tech sector sees increased investment in Q1 2024.
- European startups raised $13.7 billion in VC funding, a 5% increase from the previous year.
In the first quarter of 2024, the European energy transition is driving a resurgence in venture capital investment, according to Dealroom’s Europe Q1 report. Despite global concerns about funding slowdowns for early-stage companies, European startups raised $13.7 billion in VC funding, marking a 5% increase compared to the same period last year. This increase in funding comes as European VC is on track to follow a similar path to 2023 when the continent raised a total of $59.1 billion, with the UK remaining the top country for VC investment. Over 500 companies raised rounds of more than $2 million in the first few months of the year, with later-stage funding proving particularly strong, showing a 2.1X increase compared to Q1 2023.
The energy tech sector has now surpassed fintech as Europe’s strongest sector, thanks to several significant investments in energy startups that highlight the continent’s commitment to achieving net-zero emissions. Energy was the largest sector for deals in Europe, raising a total of $3.1 billion in funding, marking the fourth consecutive quarter that the energy sector has led in funding. This puts Energy ahead of Health, Fintech, Transport, and Enterprise Software in terms of investment. Sahar Meghani, Partner at Visionaries Club, commented on this trend, stating that European tech demonstrated resilience in the first quarter of 2024, and she is optimistic about the momentum continuing into the rest of the year.
Image: Karsten Würth on Unsplash
