Europe’s tech VC investment soared in 2014 as both deals and dollars climbed significantly. What may be the best sign for Europe’s tech scene was the growth in early stage investment which made up 70% of total tech deals in 2014.
Beyond increasing in quantity, the average and median deal sizes for early stage deals are also climbing. In 2014, early stage deal sizes at the seed stage reached a 4-year high with the median deal size growing 29% while the average deal size ticked up by 10% on a YoY basis.
Series A followed a similar trend and hit four-year highs in 2014. While averages have been steadily increasing each year as several large Series A financings occur, median deal size which is a better indicator for the market also broke out in 2014 climbing 38% YoY. The $5.8M average that was seen at the Series A stage was helped by several $30M+ Series A financings to the likes of WorldRemit and Blockchain. The presence of US investors in several Series A deals also helped to raise the average since US participation in European venture deals does tend to inflate deal sizes.
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