European tech’s 2024 in data
Sifted’s fresh funding data clearly shows the European tech scene’s rollercoaster ride this year. The first half of the year saw a strong injection of cash—nearly €50 billion across more than 3,000 deals—while the second half saw a significant slowdown, with just over €22 billion from around 2,200 deals. This drop affected the number of deals, late-stage investments, and mega-funding rounds.
VCs became pickier as the year went on. Even though fewer startups got funded, the average size of the deals increased slightly—especially at the pre-seed stage, which grew by nearly 16%. This “flight to quality” seems to steer investors toward more promising ventures amid the overall cooling.
Country by country, there were some surprises. Germany narrowly outperformed France this year, with German deals totaling around £1.4 billion from 71 rounds, even as political and Olympic distractions hampered France. Madrid lagged in Spain while Barcelona continued to shine with robust funding rounds. Meanwhile, Munich emerged as a new depth hotspot, earning praise as the “California of Europe” thanks to its growing ecosystem of unicorns and innovative startups.
Climate tech continued to lead in investment, raising over €11 billion for the year, though its momentum slowed in the latter half. Interestingly, European startups raised more money through debt than equity overall, with debt funding remaining a key lifeline even as public markets stayed quiet. To add a twist, secondary transactions offered an alternative way for investors and employees to cash in, tracking 45 notable deals over the year.
Overall, 2024 showcased both the resilience and the challenges of Europe’s tech ecosystem—demonstrating that even in a tougher funding environment, quality deals and emerging hubs like Munich are setting the stage for future growth.
Source: https://sifted.eu/articles/european-techs-2024-in-data
