European Startups Raise $11.8B in Q1 2024, Defying Global Funding Slump

In a surprising turn of events, European startups have managed to buck the global funding slowdown, raising a respectable $11.8 billion in the first quarter of 2024, according to Crunchbase data. This figure marks a marginal increase from Q4 2023 and a less than 10% decline from the same period in the previous year.

While the overall European venture funding in Q1 2024 was slightly lower than the average quarter in 2023, the region’s startups continue to attract a significant share of global venture capital. In fact, around 18% of the world’s venture funding was allocated to European companies, with North America accounting for just over 50% of the quarterly investments.

The leading sectors for funding in Europe were financial services, healthcare, and energy, with AI companies raising a sizable $1.4 billion, or roughly 12% of the total European venture capital. The United Kingdom emerged as the dominant player, representing 26% of the European venture market, closely followed by Germany and France at 16% each.

One of the standout deals in the region was the $430 million raised by London-based digital bank Monzo, which now boasts a valuation of $5 billion. The second-largest raise in Europe was by Amsterdam-based online grocer Picnic, which secured $388 million in funding.

Interestingly, early-stage funding in Europe outpaced late-stage investments in Q1 2024, reaching $5.4 billion across more than 300 startups. This trend has been consistent for three of the past five quarters, as the funding markets have continued to slow down.

While the venture funding numbers may be down from the peak, it’s worth noting that the European startup ecosystem has experienced significant growth over the years, with funding more than doubling in 2021 alone.

As the global funding landscape remains uncertain, European startups have demonstrated their resilience, showcasing the region’s ability to attract capital and nurture innovative ventures. This trend is a testament to the strength and potential of the European entrepreneurial ecosystem.