New data published today by Dealroom reveals that European VC investment grew by 5% year-on-year in Q1 2024. Furthermore, the Netherlands has shown a particularly strong recovery. Amsterdam’s funding was very encouraging, he increased by 107%.
Overall, European VC investments reached $13.7 billion in Q1 2024, with this increase largely driven by the energy transition. Energy was the largest sector for tech startup and scaleup investments for the fourth straight quarter, raising $3.1 billion in his first three months of the year.
The top five energy deals during this period are:
- Electra — $330 million, Paris
- H2 Green Steel — $325 million, Stockholm
- Deep Green — $253 million, London
- Sunfire — $233 million, Dresden
- Enviria — $200 million, Frankfurt
Deep tech and climate tech companies raised 27% and 26% of total funding in the first quarter. Unsurprisingly, these two sectors intersect frequently, with companies in both categories accounting for 13% of total funding, with significant funds earmarked for technological efforts to combat climate change. Ta.
Amsterdam startup ecosystem raising funds
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As mentioned earlier, Dutch startups are off to a good start. This was largely driven by significant funding from grocery delivery service Picnic, recently unicorn hotel management platform Mews, mobility finance company Moove and intelligent auditing platform DataSnipper.
This puts the Netherlands in fourth place with $1.3 billion raised in the first quarter. Unsurprisingly, the UK comes out on top with her $3.9 billion. Of this, London accounted for her $2.4 billion, but this amount was 18% less than last year. Germany came in second place with $2.3 billion, followed by France, where VCs invested $1.7 billion.
Overall, there were more than 500 transactions of $2 million or more. Meanwhile, generative AI accounted for 38 of the investments (up from 24 in Q1 2023, totaling $399 million), including Berlin-based Qdrant’s $28 million and Paris Includes $43 million for PhotoRoom.
“It is especially encouraging that more than 500 companies have raised at least $2 million or more. This shows a strong pipeline of startups scaling up to build category-defining next-generation companies. ” said Sahar Meghani, Partner at Visionaries Club. The Berlin-based VC added that the company is bullish that Europe will continue this momentum into 2024.
