More than 500 startups with a billion-dollar valuation haven't received fresh capital since 2021. The sectors particularly affected are SaaS, e-commerce, fitness, AI, and analytics, according to a new analysis. Overall, these companies previously raised over 260 billion US dollars, of which 80 billion were in the USA. SaaS companies like Carta, Tanium, and Sysdig haven't closed any new funding rounds in years despite high valuations. In e-commerce, well-known names like Reef Technology and Dutchie are left without freshcapital. In the fitness sector, it also affects Noom, Zwift, and Cerebral, which were last financed by investors in 2021.
In recent years, numerous European startups have faced difficulties in raising capital, leading to failures in some cases. For example, in 2023, over 100 startups filed for bankruptcy, including the Berlin FinTech Elinvar and the e-moped manufacturer Unu.
According to the study, German tech companies have raised around 74 billion dollars in capital since 2015. In comparison, between 2005 and 2014, it was only 8.1 billion dollars in total. Berlin, in particular, has established itself as one of the leading startup metropolises worldwide. Atomico also notes that investments have increased tenfold in the long-term comparison.
A central problem in Germany and Europe is the fragmentation of capital markets. According to a study by the Financial Markets Association AFME, EU capital markets lag behind those of the USA, the UK, and China, making access to financing more difficult.
Moreover, European pension funds invest only a minimal share of their assets in venture capital. According to the 'State of European Tech 2024' report by Atomico, only 0.01% of the nine trillion dollars managed by European pension funds flows into European venture capital.
Another obstacle is the shortage of skilled workers. More than 70% of European companies see the lack of qualified personnel as a significant investment barrier.
Despite these challenges, there are positive developments. Initiatives like the 150 million euro fund from CaixaBank to finance startups in Spain and Portugal show that new funding models are emerging.
Overall, raising capital in Europe remains a complex task, complicated by fragmented markets, limited private investments, and a shortage of skilled workers.
In recent years, Europe has seen a significant increase in investments in the crypto and blockchain sector. According to Chainalysis, Europe recorded crypto transactions worth 1 trillion US dollars last year, accounting for 25% of the global crypto volume.
A significant part of these activities was supported by large institutional investors, known as 'whales', who transferred considerable amounts into cryptocurrencies.
In Germany, participation in cryptocurrencies has also increased. In 2024, one in eight investors in Germany owned cryptocurrencies, and a third considered investing in digital assets.
Despite this positive development, there are also challenges. For example, Solarisbank, a German fintech company, announced it would stop trading and custody of cryptocurrencies by the end of 2024.
In recent years, Europe has seen a significant increase in investments in the crypto and blockchain sector. According to Chainalysis, Europe recorded crypto transactions worth 1 trillion US dollars last year, accounting for 25% of the global crypto volume.
In summary, Europe, especially Germany, has seen a significant increase in investments in the crypto and blockchain sector in recent years. However, challenges remain, particularly regarding regulatory frameworks and the integration of cryptocurrencies into traditional financial systems.
Here’s another article from Welt: https://www.welt.de/wirtschaft/article254577842/Atomico-Studie-Investitionen-in-europaeische-Start-ups-sinken-Continue-aber-die-Trendwende-ist-in-Sicht.html?utm_source=chatgpt.com
