European startups are celebrating as venture capital (VC) investment is on the rise once again. New data from Dealroom shows that European VC investment increased by 5% year-on-year in the first quarter of 2024. A standout performer in this resurgence is the Netherlands, with Amsterdam funding experiencing a remarkable 107% increase.
The energy transition has played a significant role in driving this surge in investment, with the energy sector leading the way for tech startups and scaleups for the fourth consecutive quarter. In Q1 2024, European VC investment totaled $13.7 billion, with energy attracting the most significant funding of $3.1 billion.
Key highlights from the period include:
– Deep tech and climate tech companies secured 27% and 26% of total funding, respectively.
– Dutch startups saw significant growth, fueled by notable raises from companies like Picnic, Mews, Moove, and DataSnipper.
– The Netherlands ranked fourth in terms of funds raised in Q1, with $1.3 billion.
– The United Kingdom led the chart with $3.9 billion, followed by Germany with $2.3 billion and France with $1.7 billion.
Additionally, over 500 deals of $2 million or more were made in Q1, with generative AI investments increasing. This highlights the strong pipeline of startups poised for growth in the future.
Sahar Meghani, a partner at Visionaries Club in Berlin, expressed optimism about Europe’s momentum in 2024, emphasizing the potential for the region to continue fostering the next generation of groundbreaking companies.
Overall, the resurgence in VC investment is a promising sign for European startups, signaling opportunities for growth and innovation in various sectors, particularly in energy and technology.
