Europe’s Startup Funding Stabilized In 2024, But Remains Far Off Market Peak
Jan 13, 2025 - news.crunchbase.com
In 2024, funding for Europe-based startups reached $51 billion, a 5% decrease from the previous year, representing 16% of global venture capital. The U.K. led with $17 billion, followed by France and Germany with $7.9 billion and $7.6 billion, respectively. Healthcare/biotechnology was the top sector with over $11 billion in investments, while financial services and AI followed with $9.6 billion and $8.8 billion, respectively. Despite a decline in late-stage funding, seed and early-stage funding remained active, with late-stage funding at 31% of the market peak.
In Q4, Europe saw $12 billion in funding, a 13% increase quarter over quarter. Late-stage funding rose 25% year over year to $5.2 billion, while early-stage funding fell 7% to $5.1 billion. Seed funding decreased 29% to $1.6 billion. Overall, Europe's startup funding was stable year over year, contrasting with North America's increase, driven largely by the AI sector. The data, sourced from Crunchbase, highlights the continued activity in Europe's seed and early-stage venture funds.
Key takeaways:
Funding to Europe-based startups in 2024 reached $51 billion, a 5% decrease from 2023.
The UK, France, and Germany were the leading countries in Europe for startup funding, with the UK raising around $17 billion.
Healthcare, financial services, and AI were the top sectors for investment in European startups in 2024.
Late-stage funding in Europe saw a significant decline, while seed and early-stage funding remained active.
