CHART: A Look at the European Startup Funding Landscape in Q2 2024
For the first time in a decade, European startups outpaced those in Asia in quarterly funding.
- European startup funding surged to nearly $16 billion in Q2, up 31% quarter-over-quarter.
- AI dominated in Europe, securing $3.3 billion in investments.
- The UK led European markets with $6.7 billion in funding, followed by France at $2.9 billion.
After a slowdown in recent years in Europe, Q2 2024 saw a significant funding increase, reaching close to $16 billion – a 31% jump compared to the previous quarter and a 17% rise year-over-year, according to Crunchbase data.
This performance marked a significant shift, with Europe outpacing Asia for the first time in a decade, as tensions between the U.S. and China weighed on Asian funding.
Emmanuel Oyedeji
AI Dominates Sector Investments
Several trends are shaping this European tech boom. Artificial intelligence (AI) led the charge, attracting $3.3 billion in investments. Companies like Wayve (autonomous driving), Mistral AI (foundation models), and DeepL (language translation) are driving this trend. Fintech comes in a close second, with $3 billion invested in digital banking platforms and lending services. Sustainability also grabbed investor attention, with renewable energy companies capturing $2.5 billion in mega-rounds.
Late-Stage Funding Drives Growth
This growth spanned both early and late-stage funding, with the latter seeing a particularly notable jump. Notably, Late-stage funding reached $7.5 billion across more than 100 rounds. While this wasn't the highest quarter in the past year, it marked a clear recovery from the fluctuating totals seen over the last five quarters.
Meanwhile, Early-stage funding also saw an uptick, totalling $6.5 billion across over 300 rounds. Series B funding, in particular, showed the largest year-over-year increase at this stage. However, seed-stage funding didn't share the same momentum, slipping to $1.8 billion from $2.3 billion in Q2 2023.
