Analysis: From famine to feast, investment in European tech startups roars back

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With Europe in coronavirus lockdown, venture capital fund manager Fergal Mullen told his investors in April he would find it hard to back a startup without first meeting its founders.

FILE PHOTO: Dollar, Euro and Pound banknotes are seen in this picture illustration taken April 28, 2017. REUTERS/Dado Ruvic/Illustration

And, according to interviews with more than half a dozen investors, the wider recovery in European tech investment activity looks likely to extend into 2021 as venture-backed startups achieve scale. Nearly two-thirds of venture capitalists and 70% of their investors expect European tech to gain ground on the United States and China over the next decade, according a survey by Atomico.Early-stage and growth investor Index Ventures raised $2 billion just before the coronavirus pandemic hit, and soon discovered that remote working enabled it to review and do deals far more quickly.

UiPath, whose software helps automate routine business tasks, has achieved similar ‘decacorn’ status while still private and, like Klarna, is eyeing an IPO in 2021.

 

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