European Tech financing broke out in 2014, reaching multi-year highs as investors poured money into VC-backed companies to the tune of over $5B.
The 2014 European Tech Report
The 2014 European Tech Report highlights funding trends as well as top investors, countries, and trends for VC-backed European tech companies.
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This in-depth report analyzes the funding activity for VC-backed private technology companies based in Europe including overall financing activity, which countries saw the most funding, and more. Below is a high-level summary of some of the report’s highlights. For all of the findings, download the entire report. It’s free.
2014: $5.7b on 855 deals - European tech funding up 78% yoy
Investment activity in VC-Backed European Tech companies reached a four-year high in both deals and dollars in 2014. Funding saw 78% growth YoY, reaching $5.7B, while deals also slightly ticked up to 855.
High-Tech Gruenderfonds is top EU tech VC
Early-stage fund High-Tech Gruenderfonds was the most active VC in EU Tech in 2014, investing in over 30 unique companies. Index Ventures and Accel Partners rounded out the top 3. Both investors participated in BlaBlaCar’s $100M Series C.
UK Tech investments top $1.6b in 2014
Investment into VC-backed UK Tech companies topped $1.6B in 2014, up 78% YoY. Despite two straight declining quarters for deal activity, deals finished slightly up YoY at 225. Q3’14 saw the most financing of any quarter in the past four years behind a $170.7M investment into online retailer The Hut Group.
Ecommerce companies rake in VC dollars
4 of the 7 most well-funded EU tech companies were in eCommerce. German Unicorn Delivery Hero is by far the most well-funded, having raised $1.22B total including $523M across three rounds in 2014. Both Delivery Hero and Spotify have made noise in 2015, with Delivery Hero closing on an additional $563M from Rocket Internet, and Spotify rumored to be raising $500M.
UK & Germany lead European tech
The UK tech scene continued to attract the highest number of deals in Europe, as deals have grown 80% since 2011. Germany was the only other country to break 100 deals in 2014, as Berlin continues to be a budding tech hub in Europe.
Is Italy the next EU tech hub? Deals grow 208%
No other country has seen better growth in tech deals over the past two years than Italy, as the country previously saw under 30 deals from 2011 – 2012 vs. over 70 in the past two years. Switzerland and Finland, which is home to Rovio Entertainment, rounded out the top 3 with growth in the 170% range.
German Tech investments skyrocket
Investments into VC-backed German Tech companies more than doubled YoY as they totaled $1.28B in 2014 versus just $578M in 2013. Q3’14 reached an 18-quarter high for dollars invested at $555M, driven largely by Delivery Hero’s $350M Series G. Deals also reached highs in Q4 amid a slew of early-stage investments.
Seed deal sizes reach highs in 2014
Both the average and median seed deal size reached four-year highs in 2014, as the median size grew 29% YoY while the average deal size ticked up 10%. After a drop-off in 2012, deal sizes have increased for two years straight.