A data-driven look at VC investment trends across the geography.
Happy New Year and welcome to 2018!
I’m happy to release my quarterly data deck on European and Israeli venture investment for the end of 2017. Without further ado, here it is, a 74-page deck packed with data and analysis on on what’s getting funded where across the European and Israeli eco-systems. You can download the deck at this link and/or view the whole thing below on slideshare. You can find the 2016 report here. (For a note on why and how I do this, read this.)
A quick note: My data is focused on sectors and geographies where I am active. It therefore excludes life sciences (pharma and therapeutics) but includes digital health and healthcare IT. My data is limited to Western, Central, and Eastern Europe and Israel . It excludes Turkey, Ukraine, Russia and the Commonwealth of Independent States.
2017 was another record year, with $20.3B invested across 1,941 investment rounds that I tracked. (This is excluding Spotify’s $1B round.) The total investment amount was up 40%, but the number of investments was only up 8% (see slide 5).
The UK accounted for $5.7B of VC investment, leading the pack. Israel came in second at $3.9B, followed by Germany at $2.9B, France at $2.4B, and Sweden at $1.7B (see slide 16 for a ranking of all 30+ countries in the sample).
On a per capita basis, Israel led with $447 of VC per capita, roughly 2x the US at $213. Sweden was second at $173. The UK came in at $88, France at $36, and Germany at 34.
Fintech was the most commonly funded vertical by a country mile: 223 investments, nearly double the second and third most funded sectors (lifestyle and electonics).
The automotive sector saw the most growth from 2016, at 144%. Adtech declined the most, by 36%:
Services overtook SaaS as the most freqently funded business model:
One of my favorite slides (although hardly useful) is this quick snapshot of the intersection of the top ten countries and the top ten most commonly funded sectors (this year, due to ties, it’s actually 11x11):
As always, I welcome your comments, questions, and feedback. Please let me know if there are additional slices of data you think I should add into the report.
If you like this sort of data and analysis, please note that I’ve started a weekly email newsletter devoted to enterprise tech venture in Europe and Israel. Click here to subscribe.
My AngelList syndicate to back the best in European & Israeli enterprise companies is now one of the largest syndicates based outside the US. We are now at well over $1.5M in backing per deal.
The syndicate has made six investments so far: all oversubscribed and all with quality co-investors. I’d be honored if you’d consider backing the syndicate — you’ll be in pretty good company and there are quite a few awesome companies in the pipeline…