European VC Markets Carried out Fairly Nicely as they Secured $40B Final Yr, Supported by Regular Fintech Sector Progress: Report

The European enterprise capital markets managed to carry out moderately effectively final yr, despite the fact that there was a major slowdown in funding or financing following the COVID-19 outbreak (throughout Q1 2020 and in addition main into Q2 2020), Crunchbase information confirms.

Funding offered to European startups throughout 2020 totaled round $40 billion, down solely 4% from 2019 at $41.eight billion. This notably marks the second-highest annual funding complete for European startups for the reason that previous 10 years.

The quantity of funding actually started to select up throughout the remaining quarter of final yr, which is usually a comparatively slower funding interval as traders are targeted on winding down operations. However this time, enterprise capital allotted to European startups totaled round $11.eight billion — which is reportedly the best-performing quarter for the reason that previous couple years. European late-stage VC funding has additionally peaked throughout This fall 2020.

VC funding acquired by Europe-based startups accounted for round 13% of complete international funding final yr. Europe and the US have been in a position to achieve a major share throughout the previous couple of years as funding in China has declined significantly over the identical time interval. Nevertheless it have to be famous that this 13% determine doesn’t embrace Europe-based startups with head workplaces now in the US however with operations and growth groups nonetheless of their dwelling nations.

Seed funding offered to early-state European companies was roughly about $1 billion per quarter for the reason that begin of 2019, in response to a report compiled by Insurtech Discussion board. Throughout 2020, there have been over 3,500 “distinctive” companies that secured funding on the seed stage (totaling roughly $3.7 billion, which is considerably decrease than the $Four billion raised in 2019). However the report additionally famous that these funding quantities will almost definitely enhance as extra seed fundings are recorded retroactively on the finish of each quarter.

As lined lately, this month (January 2021) has already been enormous by way of Fintech fundraising, with notably 13 mega-rounds (now 14 with NuBank) valued at $100 million or extra having been accomplished to start out off the brand new yr.

These firms have acquired roughly $2.746 billion in capital. This determine doesn’t even embrace funding rounds valued at lower than $100 million, nevertheless, there have been many others that additionally acquired vital investments as a part of their Collection A and Collection B rounds.

These substantial Fintech investments seem to have been constructing off the momentum from 2020 when enterprise capital-funded Fintechs acquired $41.7 billion in capital, which is notably the second-largest yearly complete of the previous 10 years, Pitchbook information confirms.

As reported lately, Fintech companies in Indonesia attracted substantial funding all through 2020 together with digital commerce and software-as-a-service or SaaS platforms.

North American and European Fintech companies attracted appreciable funding as effectively in 2020 however the variety of offers declined, in accordance to report from final month.