The strength of Europe’s VC market continued to be defined by the growing diversity of its innovation hubs; while VC investment in the UK was well-off of historical highs, increasing investment in the Nordic countries, France, Spain, Poland and others combined with steady investment in more established innovation centres in Germany and Israel helped keep VC investment in the region high during Q2’19.

As innovation hubs in Europe continue to mature, so too should their startups. A number of growing startups are now seeking larger sized rounds, a necessity for companies looking to move into new segments or regions. This growth activity is likely helping to spur VC investment in Europe for some time to come.

Trends to watch for in Europe

Q3’19 is expected to see a continuation of Brexit uncertainty given the new deal deadline is in Q4’19. Despite any localized uncertainty, VC investment in Europe is expected to remain relatively strong, particularly in areas such as fintech, AI, and healthtech. Drone delivery is one area of VC investment to watch in the future, not only in Europe, but globally.

M&A activity is poised for growth in Europe as smaller players look to consolidate in order to achieve scale. Corporate participation in VC deals is also expected to remain high in Europe as corporates continue to heed to growing imperative to innovate. 

Venture financing in Europe
Tim Dumichen quote
Europe in Q2