The risk capital investment in new European companies approved $ 52 billion last year, which reflects the long-term growth trajectory of the market and gradual stabilization after the Picos of 2021-2022 (largely driven by the COVID-19), and the comparative fall of 2023, according to a new report.
Although 2024 has seen a political and regulatory agitation, the European Talent Startup group continuesFlow of treatment“Report, which covers 2024.
An analysis of more than 375 VC and growth capital investments in Europe last year reveals a handful of key conclusions. In comparison with previous years, the European start market stabilized, with a modest rebalancing of investment terms compared to extreme ups and downs of pandemic exaggeration and deceleration after pandemic.
There was also much more adoption of the new models form documents of the British Venture de Venture Capital Association in European agreements, which tend to align more closely with US practices. With this emerging de facto standard, this trend is likely to accelerate future businesses because it is much easier to overcome the agreements where everyone is familiar with the structure.
European companies also seemed to expand the options of options, with more than 70% of capital financing, including a recharge, highlighting a strongest European talent group and the focus on scale companies instead of selling early.
There were also signs of an improvement in the volume and size of the agreement, with the average size of the agreements that Orrick made with the clients of the investors who grew by 66%, while the agreements initiated by the new companies saw a slight decrease, despite the fact that the company’s side agreements still represented the majority.
However, the report reflected the fact that Europe remains limited in the number and amount of growth stage financing agreements. While Europe is well served for the early stage, the financing of the posterior stage and the growth stage is more scarce.
Share -based agreements were stronger than debt -based offers, and companies prefer extension rounds on debt rounds. The two most common types of agreements based on equity that arise in this case are ASA (advanced subscription agreement) and safe (simple agreement for future equity).
About 30% of rounds were independent secondary financing or rounds that included a secondary component. The founders tended to access secondary transactions before in the financing stage, and some occurred from series A.
The new companies with some type of SAAS or platform -based business model represented 21% of the financing, deep technology increased to 23%, deals with an AI and ML component ( britcommerce learning) maintained a 33% participation and Fintech increased to 16% of European agreements.