TLDR:
- European venture capital investment is on the rise, with startups raising $15.6 billion in Q2 2024.
- Energy is the biggest target for venture capital, with hydrogen startups receiving $1.3 billion in the first half of the year.
European investors have reason to celebrate as venture capital investment across the bloc is increasing. In Q2 2024, European startups raised $15.6 billion, a 14% increase from the previous quarter and a 12% increase from the same period last year, according to dealroom.co. The energy sector has been the primary focus for venture investors, receiving $5.7 billion in the first half of 2024. Hydrogen startups were particularly successful, securing $1.3 billion in funding during the first half of the year.
In April, French hydrogen-powered taxi startup, HysetCo, raised nearly €200 million to expand its services. Another French venture, HyLight, which produces hydrogen-based drones, received a €3.7 million venture capital injection the same month. Sunfire, a company that makes electrolyzers for green hydrogen production, secured a €215 million equity investment in March. Belgium’s Tree Energy Solutions also received €140 million to develop a natural gas equivalent from green hydrogen. Other energy sectors that received significant investment in the first half of 2024 included EV charging with $892 million and stationary energy, like long-duration batteries, with $615 million.
This increase in venture capital investment in the European energy sector, particularly in hydrogen startups, underscores the growing interest in sustainable and clean energy solutions. The investments in these companies reflect a shifting focus towards innovative technologies that address climate change and promote environmental sustainability.
