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TLDR:
- Funding to European startups rose in Q2, exceeding investment to Asia for the first time
- Overall funding was up 31% quarter over quarter and 17% year over year
Funding to European startups saw a significant increase in Q2, reaching close to $16 billion. The overall funding rose by 31% quarter over quarter and 17% year over year, based on Crunchbase data analysis. The late-stage funding showed notable growth, with late-stage funding surpassing funding to Asia for the first time in a decade.
Across Europe, the UK emerged as the leading market with $6.7 billion in funding, followed by France at $2.9 billion. Germany, however, experienced a decline with $1.8 billion going to startups there. AI led the industries in Europe with $3.3 billion in investments, followed by financial services and sustainability.
Late-stage funding reached $7.5 billion in Q2, with more than 100 rounds recorded. Early-stage funding also showed an increase, reaching $6.5 billion across just over 300 rounds. Seed stage funding, however, saw a slight decrease compared to the previous quarter.
Several significant acquisitions took place in Paris, with notable deals involving major startups. Three European companies joined the unicorn board in Q2, demonstrating positive signs for the region’s venture ecosystem. Fintech unicorn Revolut reported strong revenue growth in 2023, further highlighting the success of European startups in the funding landscape.
Overall, European startups had a promising quarter with increased late-stage funding, dominance in AI funding, and impressive revenue growth from key companies like Revolut.
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