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01

Key Findings

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The State of European Tech 2019

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03

Investments

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Investors

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Diversity & Inclusion

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06

People

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Purpose

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08

Places

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09

Policy

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10

About

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Appendix

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Investments by Geography

Cumulative capital investment since 2015 has surpassed $10 billion in three European countries (UK, Germany, France) and more than $1 billion in a further eleven countries.

Capital invested ($M) by country, cumulative since 2015 and per year

Source:

Legend

  • 2015
  • 2016
  • 2017
  • 2018
  • 2019
Note:
All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019.

Capital invested ($M) by country

Source:

Legend

  • United Kingdom
Note:
Only countries with at least $1M invested since 2015 included. 2019 annualised based on data to September 2019.

I am even more optimistic than I was 12 months ago, if that's possible.

I am even more optimistic than I was 12 months ago, if that's possible. In the last 12 months we have seen record funding and the birth of new French unicorns. We've also seen some very promising initiatives from the government like the new French Tech Visa for talent and Macron's recent announcement of a new massive fund for deep tech. We are seeing more and more tier-1 international investors and entrepreneurs scouting around and saying they are excited about what they are seeing. It's all very promising.

Roxanne Varza

Station F

Director

London is Europe's tech capital, as measured by the total number of unique companies that have raised funding since 2015, with more than twice the number of the second city by size, Paris. In total, Europe is home to more than 13,000 unique companies that have raised funding since 2015.

European tech companies

13,000
of unique European tech companies that have raised funding since 2015.

Top 20 hubs by number of unique funded companies, 2015-2019

Source:
Note:
Number of unique funded companies between 2015 to 9M 2019. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel.

The distribution of capital invested per country varies within key European tech industry verticals. The UK, for example, is the most important destination for investments in fintech, accounting for half of all capital flows.

Fintech investments

50%
UK share of total European fintech investments since 2018.

Share of capital invested (%) per vertical per country, 2015-2017 vs. 2018-2019 YTD

Source:

Legend

  • United Kingdom
  • Germany
  • Sweden
  • France
  • Switzerland
  • Netherlands
  • Spain
  • Denmark
  • Italy
  • Ireland
  • Rest of Europe
Note:
All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019.

Though the UK has a dominant share of capital invested in European fintech companies, its share of deals is lower, a reflection of the fact that UK fintech companies have been successful in raising a number of giant rounds of more than $100M. In fact, looking at the distribution of deals per industry vertical per country shows the distributed characteristic of investment activity across the region, as demonstrated by the share of deals in the transportation industry.

Share of deals (%) per industry vertical by country

Source:

Legend

  • United Kingdom
  • Germany
  • France
  • Netherlands
  • Spain
  • Sweden
  • Russia
  • Switzerland
  • Italy
  • Norway
  • Rest of Europe
Note:
All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019.

It is important to be cautious when analysing deal count per year due to the significant impact of the reporting lag on total volumes reported for 2018 and, especially, 2019. Taking this into account, countries such as Austria, Belgium and Denmark have all seen robust deal volume in 2019 compared to previous years.

Number of deals by country per year

Source:

Legend

  • United Kingdom
Note:
All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019.

The top 10 European tech hubs for capital invested is becoming an increasingly interesting set of cities. Places perhaps less known to European tech outsiders have established themselves as important destinations for inbound capital flow, including Bucharest, Cambridge and Munich.

Top 20 European hubs by capital invested ($M), ranking based on 2019

Source:

Legend

Note:
All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019.

Similarly on the number of deals, it is interesting to see cities like Milan make the top 15 list, a sign that Italy is starting to catch up.

Top 20 European hubs by number of deals, ranking based on 2019

Source:

Legend

Note:
All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019.

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