VC invested in European startups 52 billion dollars in 2024, and continues to grow in the long run

Investment capital investment in European startups acknowledged $ 52 billion in the past year, reflecting the long-term growth path in the market and gradual stabilization after the outskirts of 2021-2022 (largely driven by the Covid-19 pandemic), and the decline of comparative from 2023, according to a new report.

Although 2024 witnessed political and regulatory turmoil, a group of startups in Europe continues to increase, even if the deficiency in financing was kicks last year, for every new ORRICK international law company.DealflowA report, which covers 2024.

An analysis of more than 375 VC and investments in growth shares in Europe last year reveals a handful of main fast food. Compared to previous years, the startup market in Europe settled, with a balanced balance of investment terms compared to the extreme higher and declines in the epidemic noise and postpartum slow birth.

There was also a lot of adopting the new model model documents of the Investment Capital Association in European deals, which tend to consent more closely with American practices. With this emerging standard, this trend is likely to speed up future deals because it is much easier to pay the deals in which everyone is familiar with the structure.

European companies also seem to expand options clusters, including more than 70 % of stock financing, highlighting a stronger European talent group and focusing on limiting companies instead of selling early.

There were signs of improvement in size and size, as well, with the average size of the deals by Orrrick with 66 % investor clients, while the deals that startups started a slight decrease, though this though this
The company’s side deals still represent the majority.

However, the report reflects the fact that Europe is still restricted in the number of growth financing deals. While Europe is well served to the early stage, financing the subsequent stage and growth stage is scarce.

Stock -based deals were stronger than debt -based deals, as companies prefer to extend the debt tours. The two most common types of deals based on emerging stocks in this case are ASAS (advanced subscription agreement) and safe (a simple agreement for future stocks).

About 30 % of the rounds were either independent secondary financing or rounds that included a secondary component. Founders tend to reach secondary transactions early in the financing stage, with some early in the series A.

Startups representing a type of type or platform -based business model represents 21 % of the financing, the Deeptech company increased to 23 %, deals with the AI ​​and ML component (automatic learning) has maintained a 33 % stake, and Fintech rose to 16 % of European deals.