Biweekly VC Insights by Uniborn #36

Inside: Key numbers and names of the 2024 European VC industry
Barbara Krassner
🇬🇪 Uniborn Team
3 min read

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🔥 5 out of the top 10 startup hubs in Europe call the UK their home, with the crown going to Germany

Unveiling the crop: Financial Times, Sifted, and Statista have meticulously curated the top 125 startup hubs across Europe. They’ve evaluated and considered everything from incubation and acceleration programs to alumni satisfaction, market perception, and the success stories of companies that graduated from these programs.

From this, perhaps the best startup hub on the continent today is UnternehmerTUM in Germany. As the FT writes, "Ask the founders at any fledgling Munich company how they got their business off the ground, and they are likely to mention UnternehmerTUM, the start-up lab of the Technical University of Munich (TUM), that was set up in 2002 by German heiress Susanne Klatten." Each year, it hosts 5,000 participants in its startup programs, leading to the launch of 50 new projects annually.

But let's remember the other heavy hitters: Portugal, Belgium, and the Netherlands each have their top-tier startup centers, yet the majority of the elite lineup still resides in the UK.

Here is the whole ranking.

🔥Five new pillars for fundraising in Europe

Venture capital in Europe has weathered some turbulent storms in recent years, paving the way for a new landscape in the industry. Carta analysts have identified the key changes that took place in 2023 and are likely to remain relevant in 2024:

  • Pre-seed rounds have seen a 40% increase in size standards.
Image: Carta
Image: Carta
  • The rate of seed investment has decreased by 14% compared to 2022. But on a multi-year scale, there is still growth — by 56% since 2020.
Image: Carta
Image: Carta
  • There was 21% less money in A rounds. But if we exclude the peaks of previous years, the picture changes to a positive one.
Image: Carta
Image: Carta
  • The median Series B round size has surged by 6%.
Image: Carta
Image: Carta
  • The average gap between Series A and Series B rounds has widened to 760 days, a significant length of time. In contrast, Series A startups typically secure funding about a year and a half after their seed round.
Image: Carta
Image: Carta

The key insight here is clear: "While the timelines for progressing from one fundraising stage to the next have stretched, the amounts being raised paint a picture of a resilient and adapting startup ecosystem. The consolidation in deal volume suggests a more competitive landscape, yet the increased capital for those who secure funding signals strong investor confidence," as stated by Andre Retterath, partner at Earlybird Venture Capital.

Here is the whole report.

🔥 Get ready for the next wave of European unicorns, focusing on AI and enterprise SaaS

Viva Technology has just revealed the top 100 potential European unicorns (which together have raised 16 billion euros!). The analysts considered factors like actual and potential growth, total funds raised, staff expansion, regional traits, and positive societal impact.

Among the 16 countries represented, the UK leads with 22 promising companies, closely followed by France with 21 and Germany with 14. The most common sectors among these future stars are SaaS (with 43 companies), AI (16 companies), as well as digital media and big data (also 16 companies).

Past data demonstrates that around a third of startups in Viva Technology rankings typically reach unicorn status, so it's time to grab your popcorn and place your bets!

Here is the whole list.

Cover image: Unsplash

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