Early-stage venture funding in the European tech industry has increased by more than four times since 2015, a report from Stripe, Techstars and tech.eu has found.
The report, named "Seed the Future," looked at how the European early-stage venture capital market has developed since 2015. In Q1 2015, investment topped out at just below 430 million (US$484.6 million), but by Q2 2018, the amount had quadrupled to 2.03 billion ($2.28 billion). This is by far the highest investment amount per quarter; the previous highest was almost 500 million ($563 million) lower, at 1.55 billion ($1.74 billion), in the second quarter of 2016.
The number of deals, however, has gone down from the Q4 2016 high of 681 to 630 in Q2 2018. This could be viewed as a bad thing -- investors are less interested in deals, maybe? -- but it means European investors are putting less money into fledgling startups, and more into "scale" or growth startups. This means the average deal size per quarter is, marginally, bigger per quarter. (See Investment Deals Declined 20% in Q3 – Report .)
The average deal size in Q2 2018 was 3.2 million ($3.6 million), an increase of 0.9 million year-on-year. For European startups to begin challenging US and Asian startups for growth, this is important: Investment later on in a startup's lifespan will help facilitate growth and build bigger, better companies. (See Why Does the UK Tech Industry Struggle Post-Unicorn?.)
The full report has a lot more insight, analysis and statistics available. For anyone interested in the early-stage startup scene in Europe, check it out at the tech.eu website.