TLDR:
– European venture funding reached $11.8 billion in Q1 2024
– Early-stage funding outpaced late-stage funding
In the first quarter of 2024, European startups received $11.8 billion in venture funding, slightly higher than the previous quarter but down less than 10% from Q1 2023. The leading sectors for funding in Europe were financial services, healthcare, and energy, with AI companies raising $1.4 billion. The U.K. represented 26% of the European venture market, followed by Germany and France.
Late-stage investments totaled $4.6 billion, with London-based digital bank Monzo and Amsterdam-based online grocer Picnic raising the largest funding rounds. Early-stage funding outpaced late-stage funding, reaching $5.4 billion in Q1. Sustainable energy companies like Electra, Enviria, and Aira received significant Series B funding. European seed-stage startups raised $1.7 billion, continuing a trend of strong investment in early-stage companies.
While overall venture funding numbers have decreased from previous peaks, the European startup funding landscape has seen significant growth in recent years. The early-stage funding has outpaced late-stage funding amounts for three of the past five quarters, indicating a stronger focus on supporting early-stage startups.
