- Europe-based startups saw a 5% decrease in funding in 2024, settling at $51 billion, but still raised 16% of the total global venture capital.
- The U.K., France, and Germany led in funding, with the healthcare/biotech sector receiving the most investment.
- AI was the third-largest sector for funding at $8.8 billion, and Q4 funding reached $12 billion.
- Despite a slight decrease, Europe’s startup scene remains robust, with the U.K., France, and Germany leading in funding.
In 2024, Europe-based startups experienced a slight decrease in funding, settling at $51 billion, a 5% drop from the $54 billion invested in 2023, according to Crunchbase data. Despite this, Europe’s startups still managed to raise 16% of the total global venture capital in 2024, a slight decrease from the 18% raised in the previous two years.
It’s important to note that some European startups have relocated their headquarters to the U.S. while maintaining large teams in Europe. This shift can skew funding numbers in favor of the U.S., as funding counts are based on a company’s location.
In comparison to the market peak of $117 billion in 2021, funding in Europe in 2024 was less than half, at 44%. Late-stage funding experienced the most significant drop since the continent’s funding peak. However, despite being flat year over year, funding levels were still above pre-pandemic levels, including those of 2020.
Leading Countries and Sectors in Europe’s Startup Scene
The U.K., France, and Germany led the way in funding. The U.K. accounted for around a third of funding to Europe’s startups in 2024, with U.K.-based startups raising around $17 billion of the total funding. France and Germany followed closely, each representing about 15% of funding to the continent, raising $7.9 billion and $7.6 billion respectively. Switzerland was the fourth-largest European country in terms of startup investment, with $2.8 billion invested in its startups in 2024.
The healthcare/biotechnology sector led the way in investment for Europe’s startups, with more than $11 billion invested. Leading companies in this sector included Germany-based biotech holding company Isotopen Technologien München, London-based women’s health startup Flo Health, and Finland-based sleep and health tracking platform Oura.
Financial services was the second-largest sector, with $9.6 billion in funding. Significant rounds in this sector went to London-based lending firm Abound, Barcelona-based e-commerce payment company SeQura, London-based digital bank Monzo, and London-based cross border payment company Zepz.
AI Investments and Q4 Funding
AI was the third-largest sector for funding to Europe startups at $8.8 billion, representing around 9% of global AI funding. The largest rounds were raised by London-based autonomous driving startup Wayve, Paris-based foundation model company Mistral AI, Berlin-based AI defense company Helsing, and AI translation company Cologne-based DeepL.
In Q4, funding to Europe startups reached $12 billion, up 13% quarter over quarter and flat year over year. Late-stage funding in Q4 reached $5.2 billion across 100 deals, up 25% by amounts year over year. Early-stage funding reached $5.1 billion in Q4 across nearly 300 funding rounds, down 7% year over year. Seed funding reached $1.6 billion in Q4 across more than 800 deals, down 29% in funding from the previous year’s Q4.