Skip to main content

VCs poured capital into European startups in Q3, but early-stage dealmaking appeared to suffer

The global recovery in venture capital activity did not miss Europe, new data indicates.

According to a PitchBook report, European venture capital activity rose in Q3 2020, putting the continent on pace to set a new yearly record for aggregate VC activity (as measured in Euros).

The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.

The strong results come in the wake of a cracking quarter for venture capital activity in the United States and a generally bullish period for the global VC market. Venture debt is also seeing something of a rebound from lulls seen earlier in the year.

Inside Europe’s Q3 however, was some less-than-good news: the amount of money that went to first-financings was weak, and much of the strong results from the continent were predicated on capital flowing into already-funded startups. There’s less pie for new companies than the top-line numbers might suggest.

Let’s get into the good and bad from Europe’s quarter, contrasting our new data with some prior numbers that we saw when looking into aggregate VC data from Q3.

We’re wrapping up our look at the post-summer venture rebound today, but there’s just a bit more we need to learn before we move on. Let’s get into it.

Europe’s third quarter

Starting with the good news: PitchBook reports that total European venture capital activity came to €10.6 billion in the third quarter of 2020. Per the financial and business data group, it was the third time in history that European venture capital activity crossed the €10 billion mark. (For the sake of comparison, United States-based startups raised around $37 billion, or about €31.5 billion, during the same period.)



from Startups – TechCrunch https://ift.tt/3kIoz2w
Labels:

Comments

Post a Comment

Popular posts from this blog

Thousands of cryptocurrency projects are already dead

Two sites that are actively cataloging failed crypto projects, Coinopsy and DeadCoins , have found that over a 1,000 projects have failed so far in 2018. The projects range from true abandonware to outright scams and include BRIG , a scam by two “brothers,” Jack and Jay Brig, and Titanium , a project that ended in an SEC investigation. Obviously any new set of institutions must create their own sets of rules and that is exactly what is happening in the blockchain world. But when faced with the potential for massive token fundraising, bigger problems arise. While everyone expects startups to fail, the sheer amount of cash flooding these projects is a big problem. When a startup has too much fuel too quickly the resulting conflagration ends up consuming both the company and the founders and there is little help for the investors. These conflagrations happen everywhere are a global phenomenon. Scam and dead ICOs raised $1 billion in 2017 with 297 questionable startups in the mix. The
Post a Comment
Read more

Dance launches its e-bike subscription service in Berlin

German startup Dance is launching its subscription service in its hometown Berlin. For a flat monthly fee of €79 (around $93 at today’s exchange rate), users will get a custom-designed electric bike as well as access to an on-demand repair and maintenance service. Founded by the former founders of SoundCloud and Jimdo , the company managed to raise some significant funding before launching its service. BlueYard led the startup’s seed round while HV Capital (formerly known as HV Holtzbrinck Ventures) led Dance’s €15 million Series A round, which represented $17.7 million at the time. E-bike subscription service Dance closes $17.7M Series A, led by HV Holtzbrinck Ventures The reason why Dance needed so much capital is that the company has designed its own e-bike internally. Called the Dance One, it features an aluminum frame and weighs around 22kg (48.5lb). It has a single speed and it relies on its electric motor to help you go from 0 to 25kmph. And the best part is that you
Post a Comment
Read more