EUROPEAN VENTURE MARKETS

ON THE RISE

The second quarter of 2021 brought us some impressive news of investment deals. Billions of euros were raised, various rounds were closed, and new unicorns have emerged.

With the help of the Deals Monitor, we have gathered all these best moments from the past quarter to see the overall picture. We intend to continue to write such overviews regularly, so be sure to stay up to date and subscribe to our monthly recap.

It is highly important to track tendencies and look for patterns in the market, as most of the time, having a look at a single investment deal will not help describe the market.

So, here is our summary of what happened in the second quarter of 2021.

Investment deals activity in Q2 2021 – Overview

Overall Funding in Europe 

Despite an already successful first quarter, Europe managed to hit another all-time high of $30.6B in funding in Q2. This makes the half-year mark of 2021 blow all previous yearly funding records.
As many as 1,821 deals were closed during the quarter, with 69% funding share dedicated to early stage deals, and 18% – to mid- and late-stage deals.

Leading Industries

  1. FinTech. As the latest European Venture Sentiment Index report predicted, investors continue to focus on the highly promising FinTech industry. In the last quarter, the industry has seen a new record high of $33.7B and as many as 815 FinTech deals closed. According to KPMG’s Q1’21 Venture Pulse Report – Europe, this trend continues since the first quarter of 2021.
  2. Biotech and HealthCare sectors are also growing rapidly, due to the high demand for smart solutions in wellness and health. These sectors’ funding doubled YoY and reached $14B per 625 deals closed last quarter.
  3. E-Commerce is the fourth leading industry. As stated by BlackRock, its upward trend that has started during the pandemic, continues to grow. In the second quarter, E-commerce companies raised $16.3B / 401 deals, showing up to 23% QoQ.
  4. Software is another highly relevant sector, which brought a large number of funds in the last quarter.
  5. Cybersecurity and AI are also seeing all-time highs, with $13B and $31B respectively in the first half of 2021.

Geography of Investments

The majority of the deals come from the United Kingdom, France, Germany and a rapidly growing startup hub – Sweden.

Some of the most remarkable startups from there are Blockchain.com (UK), which is a fintech company, and Forto (DE), which offers creative logtech solutions.

Top 10 European Deals in Q2 2021 – Deals Monitor

  • Trade Republic | $900M | Valued at $5.3B | Germany

In May, German neobrocker startup Trade Republic has raised $900m in Series C round led by Sequoia. Sifted calls this success “the biggest fintech round in Europe”. Moreover, Trade Republic is now being valued at $5.3 billion. It is now expanding across Europe with its distinct purpose: “to help people invest responsibly.”

  • MessageBird | $800M | Netherlands

At the end of April, messaging platform MessageBird had two announcements to make. Firstly, it has bagged $800m in Series C extension. Secondly, it acquired Spark Post which is a platform for email marketing. TechCrunch underlines that this acquisition will help this Dutch startup enter the U.S. market as a strong competitor.

  • Mollie | $800M | Valued at $6.5B | Netherlands

At the end of June, Dutch startup Mollie has raised $800m in funding during Series C and is now valued at $6.5 billion. The company has greatly benefited from the pandemic because of the rapid digitalization. However, as TechCrunch states, the fact that Mollie grows now at the same pace, proves that its success will be long lasting, due to the steady demand for digital payments.

  • wefox | $650M | Valued at $3B | Germany

Berlin-based wefox has received $650 million in Series C funding. According to Finsmes, the digital insurance company is going to spend funds raised on expansion to new markets, namely Asia and U.S. Now wefox is valued at $3 billion. Last year, the company reported first profits from selling insurances through intermediaries.

  • Exscientia | $225M | UK

British startup Exscientia has closed $225 million in Series D funding at the end of April. Exscientia is a pharmatech company that uses AI for drugs production. Finsmes states, that Excientia will advance its clinical trials and will develop an autonomous technology platform with money that has been raised.

  • Contentsquare | $500M | Valued at $2.8 | France

French platform for analyzing customer behaviour Contentsquare valued $2.8 billion after $500 million Series E round. Contentsquare found a perfect moment to start improving online sales, due to global digitalization the transition from offline to online became a necessity. Crunchbase says, that the startup’s goal is to enter markets in China and U.S.

  • Glovo | €450M | Spain

Spanish delivery Glovo has raised €450 million in Series F funding. Glovo wins the competition by having a multiple category delivery. As EU-Startups say, Glovo delivers not only food from restaurants, but also pharmacies, alcohol and groceries. Glovo intends to strengthen its footprint in the currently operating markets.

  • Ledger | $380M | Valued at $1.5B | France

Paris-based Ledger has closed $380 million after its Series C round. The company is ambitious about further improvement and development of its hardware products. UKTech says, that Ledger also wants to add new transactional services to Ledger Live. For now, the company is valued at $1.5 billion and has offices in New York, London, Vierzon and Singapore. Ledger’s main goal is to become the secure gateway to the entire digital asset sector.

  • Bought By Many | €286M | UK

UK’s Bought By Many has secured €286 million in Series D round. According to EU-Startups, the company’s niche is digitalized services for pets, including insurance and vet consultations. Like many other Insurtech startups, Bought By Many was in great demand during the pandemic. Bought By Many is going to extend its strength on the underpenetrated pettech markets in Europe and the U.S.

  • GoStudent | $244M | Valued at $1.7B | Austria

Vienna’s GoStudent raises $244 million at a $1.7 billion valuation for its online tutor marketplace. This made GoStudent Austria`s second unicorn, after Bitpanda. According to TechCrunch, the funding is coming at a time of strong growth. GoStudent is now present in 18 countries and wants to expand to Mexico and Canada. Also, it reported having 400,000 sessions booked monthly on its platform, up 700% year-on-year (and up 15% month-on-month).

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Conclusion

Investors’ optimism continued to grow over the course of the last quarter. Industries like FinTech, Digital Health, and E-commerce continue to grow exponentially and hit new highs with the largest European investment rounds ever closed. The United Kingdom, France and Germany remain their position of strong startup hubs and serve as home to the majority of startups that received funding the last quarter.

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