The annual deep dive into the angel investment climate of Europe.
2024
About the report
This is the second edition of our annual report, initiated by Ash Pournouri and Andreas Grape (Nordic Angels), along with BCG. The report embodies a comprehensive exploration and detailed data aggregation across the European startup- and private market ecosystem. Within the scope of this report, an 'angel' is defined as any business angel contributing to the startup and private market as an investor, board member, advisor, or through any other means that involve investing time, money, or effort to foster the growth of the startup scene. Below is a selection of key insights, providing a preview of the comprehensive content in the full report.
Startup Impact: Changing Society and Boosting Economies
01
Startups continue to drive societal change and economic prosperity
23%
Smaller entities, including startups,represent 23% of patent applications, up 3% percentage points from last year.
50%
Half of all new jobs in OECD countries are created by companies founded in last 5 years
8.4
Trillion USD
The value of the global startup ecosystem is greater than than the GDP of France, Germany, Switzerland and Poland combined.
Sources: European Patent Office, Global Innovation Index, Global startup ecosystem index, Invest Europe, Startup Genome, World Bank, Analysis by BCG/Nordic Angels
TOTAL VC INVESTMENTS DECREASED BY 35%
02
Global VC investments dropped in 2023; Europe maintained its global share
Sources: Pitchbook, Dealroom, Expert interviews, Analysis by BCG/Nordic Angels
EUROPE REMAINED GLOBAL SHARE BETWEEN 2022-2023
03
Early and late-stage funding declined, but Europe’s share of these stages increased over the decade.
Sources: Pitchbook, Dealroom, Expert interviews, Analysis by BCG/Nordic Angels
The five largest European countries for VC, including angel investment, remained the same as in 2022
04
76%
of funding in Europe are accounted by five countries.
Funding amount in Europe in 2023
With change in % between 22-23
Early Stage Funding
Late Stage Funding
Sources: Pitchbook, Dealroom, Expert interviews, Analysis by BCG/Nordic Angels
CAPITAL CITIES LOST GROUND WHILE SMALLER ECOSYSTEMS GREW
05
Innovation is diffusing beyond capital cities across European economies
Percentage share of national VC funding ‘22-’23 with colors representing the trend.
Decrease
Unchanged
Increase
Sources: Dealroom, Office for National Statistics (UK), Statistische Ämter (DE), Insee (FR), Statista (NL), Pitchbook
ENERGY AND transportation ARE BRIGHT SPOTS FOR 2023
06
The leading sectors for early-stage investments in Europe
Top 5 sectors for early investing in Europe
Energy
12%
+10%
Transportation
7%
+1%
Fintech
12%
-26%
Enterprise software
13%
-19%
Food
14%
-7%
Share of total and change '22-'23
Sources: Dealroom, Analysis by BCG/Nordic Angels
North America leading within AI-investments
07
AI investments keep growing, but Europe lags behind.
21%
Of total global investments share in 2023 was in AI. With North America leading the way with 72% of the total amount.
EUROPEAN ANGEL NETWORKS HAVE CONSOLIDATED IN RECENT YEARS AND COLLECTIVELY INVESTING MORE MONEY PER ANGEL NETWORK
08
The European angel community flourishes as networks attract members at record levels
Sources: European Business Angel Network, Analysis by BCG/Nordic Angels
Startup Impact: Changing Society and Boosting Economies
09
European angel investors increased their deal participation in 2022, defying the overall VC trend.
“I've observed that more angels today spread their investments into more startups at lower ticket sizes. The implication is that startups are receiving less active support and advice from their angels.”
— Angel Investor, UK-based
10%
Increase of Angels joining the Angel community in 2022
Sources: European Business Angel Network; Dealroom
THE CUMULATIVE NUMBER OF UNICORNS IN EUROPE REACHED 458 IN 2023
10
Europe’s global share of newly created unicorns declined in 2023
Cumulative # of unicorns per hub in 2023
-30%
Drop in Europe's share of creation of new unicorns
Europe
548
Asia
627
North America
1584
Source: Dealroom
FEMALE FOUNDERS REMAIN A RARITY AT THE EUROPEAN STARTUP SCENE
11
Female founders are closing the gap in seed-stage funding
All Female Founders
8%
All Male Founders
77%
Mixed Founders
15%
Share of European VC funding directed at startups with all-female founders
(Pre) Seed stage
Early stage
Late stage
Sources: Dealroom, Analysis by BCG/Nordic Angels
Composition of the startup community
12
Number of Angels in the European Startup Ecosystem
We define an angel as any business angel contributing to the startup and private market as an investor, board member, advisor, or through any other means that involve investing time, money, or effort to foster the growth of the startup scene.
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