TLDR:
- The European VC ecosystem is seeing a focus on positive impact and sustainability
- A third of the €53B VC investment in Europe in 2023 was directed towards startups addressing UN SDGs
The landscape of venture capital in Europe is evolving with a distinct focus on positive impact and sustainability. According to a recent report by European Women in VC, a third of the €53B VC investment raised in Europe in 2023 was directed towards startups addressing one or more of the United Nations SDGs. The surge in impact-driven investments is evident across various sectors, with European climate tech startups receiving significant investment. However, the report also highlights the need for more institutional investors in the European VC ecosystem, especially in late-stage financing for sectors like clean tech, quantum computing, and AI. The report emphasizes the importance of diversity in venture capital teams and the adoption of impact investing frameworks. Overall, the report calls for more capital to be channeled into the EU market to meet investment needs and drive positive impact.
