Gil Dibner just published this great analysis of Q3 venture activity in Europe and Israel. It’s very comprehensive and well worth flicking through the full 55 pages if you are investing or raising money over here.
Here are the seven points that stick in my mind.
- Investment activity is growing fast – up roughly 2x year on year (slide 4)
- UK and Israel dominate with France and Germany next at approx half the size (slides 10 and 11)
- UK saw $897m of investment in Q3 – ($622m if you exclude the $275m investment in Fanduel) (slides 10 and 11)
- The number of $100m+ ‘mega-rounds’ is increasing with 4 in Q3 and 6 in Q2
- US VCs participate in around 20% of European deals, with a heavy skew towards later rounds (slides 18 and 19)
- Consumer investments are the biggest sector – likely because consumer markets are local markets and therefore less vulnerable to competition from Silicon Valley backed startups (slides 22 and 23)
- Fintech is the largest sector, particularly in the UK (slides 36 and 41)