The year 2023 marked a challenging yet resilient phase for the European tech ecosystem. Facing tough macroeconomic conditions, Europe saw a significant reduction in funding levels, reaching just over half of 2022's levels at $45 billion. Large funding rounds and the creation of new billion-dollar companies slowed down, testing the venture asset class's strength and resilience. Startups Magazine looks at the Atomico State of European Tech Report 2023.
Failup Ventures, an emergent venture capital fund operating globally, recently announced the initial closing of €30 million for its new early-stage fund, which has a total size of €50 million. This fund was established by three Finnish entrepreneurs - Jesse Heikkilä, Topias Soininen, and Oscar Andersin.
Aikido Security, the developer-first software security app for growing SaaS companies, announces it has raised €5 million in a Seed round co-led by Notion Capital and Connect Ventures; with investment from Inovia Capital Precede Fund I, led by partners Raif Jacobs and former Google CFO Patrick Pichette; as well as an impressive roster of angel investors including Christina Cacioppo, CEO of Vanta.
Photonic, a company in quantum computing, has successfully secured an investment of $100 million. The funding was contributed by a range of investors including the British Columbia Investment Management Corporation (BCI), Microsoft Corporation, the UK government's National Security Strategic Investment Fund (NSSIF), Inovia Capital, and Amadeus Capital Partners. This investment elevates Photonic's total funding to $140 million.
IBM recently unveiled its intention to establish an Enterprise AI Venture Fund worth $500 million. This fund is poised to support a variety of AI enterprises, from those in their infancy to rapidly expanding startups, all with the aim of propelling generative AI technology and research within the corporate sector.
There is a staggering $2.5 trillion global trade finance gap that mainly affects SMEs in emerging countries, limiting their ability to access new business opportunities. Helping businesses to bridge this finance gap, supply chain fintech Twinco Capital announced on Tuesday, in the sixth edition of the Valencia Digital Summit (VDS), it has secured an additional €50 million facility with BBVA Spark to accelerate growth.
multifi, a UK startup specialising in finance for small and medium-sized businesses, has secured a substantial capital injection of £10 million from Fasanara Capital, a $4 billion London-based asset manager and technology platform. This initial injection will support the growth of UK businesses that can access a credit facility of up to £200,000 with a fixed monthly access fee of 0.3% and an interest rate of 1.99% per month on used credit.
Securing investment is crucial for any SME that has one eye on the future. International growth, team expansion and product launches are all possible when a business has spare capital. Unfortunately, the current economic climate has made it even more of a challenge for smaller businesses to secure funding.
Securing investment for your scaleup is a major step, signalling new growth and potential for your business. While the prospect of taking the exhilarating step of financing your scaleup is exciting, the challenge of winning over investors remains critical. In the current climate, it can be difficult to compete with other startups and businesses for investor trust.
It’s become almost de rigueur to see entrepreneurs talk about landing an angel investor, their latest funding round or a crowdfunding campaign. Modern businesses have more financing opportunities open to them than ever before, but this can leave a lot of would-be entrepreneurs thinking the only way to success is through outside investment.
Turquoise, the UK merchant bank specialising in energy, environment and efficiency, has announced a follow-on investment by Low Carbon Innovation Fund 2 (LCIF2) in SKOOT ECO GROUP. This forms part of a £1.1 million capital raising round for the startup which will fuel SKOOT’s growth as it also announces its first one million trees planted.
"Gaining entry into an accelerator's funding program requires startups to possess a combination of qualities, which collectively reveal a business that has the potential to thrive in a competitive and rapidly changing business landscape," writes Dr Yousef Alhammadi, Executive Director of The Abu Dhabi Early Childhood Authority (ECA).
The Venture Capital Trust Association (VCTA) has published new data gathered from over 600 early-stage companies that have benefited from VCT funding, which shows that deployment of capital into early-stage startups grew 8% year-on-year to £664 million, proving resilient in context of wider UK venture capital funding, which fell by almost a quarter (23%) in 2022.
In times of economic uncertainty, female-led businesses can be particularly vulnerable. A lack of awareness of the funding options available and a reluctance to take on debt, coupled with the impact of the lending gap, makes it harder for female founders to secure funding to increase working capital or seek growth in turbulent times.
UK-based bio-tech business Clean Food Group has announced a further £2.3 million in funding to accelerate the commercialisation of its sustainable oils and fats technology. International investment has come from industrial food specialists Doehler Group and Alianza Team as the global food industry looks to invest in healthier and more sustainable food choices for future generations.
Sourcing finance for growth plans is a huge part of running a startup. There are many stages and steps involved in getting a brand-new business off the ground. From that initial inspiration, to developing a sound concept, planning, staffing, marketing, and launching. But hard cash underpins everything a startup founder does and can dream of doing.
Pockit – the financial super app for low-income and underserved communities – has raised $10 million in a growth round led by Puma Private Equity, with participation from The North East Development Capital Fund, managed by Maven Capital Partners and supported by the European Regional Development Fund.
Savvy investors around the world are using the ‘summer markets’ period to consider rebalancing their portfolios and, speaking in a recent social media post, the CEO and Founder of one of the world’s largest independent financial advisory organisations said this summer he’s investing in three key areas.
NGP Capital, the global venture capital firm, has announced the results of its deep dive into the DACH startup ecosystem investment landscape. Comparing data from the beginning of Q1 (January) 2020 up to the end of Q2 (June) 2023, NGP Capital’s analysed over 3905 companies and 5644 funding rounds from across Germany, Switzerland, Austria, and Liechtenstein, to show the latest trends in startup fundraising, dealmaking, and exits from across the region.
Hello Neighbour, a UK full-service property lettings and management company powered by technology, has announced the completion of a £2.5 million Series A round, with a majority stake from Surebind. Backed by private and institutional investors, the latest raise brings total funding amounts to £4.8 million.
Thunes, the global B2B payment infrastructure platform, has announced the addition of three prominent investors – Visa, EDBI, and Endeavor Catalyst – to its Series C funding round, supporting its mission to address the inefficiencies of moving money internationally and create a next-generation payment system that is secure, instant and transparent.
Raising capital during an economic downturn can be a challenging endeavour, as the fear of dilution and the need for financial stability become paramount. Attempting to raise during a downturn presents various hurdles including longer timelines, risk-averse investors, and downward shifts in the company valuation.
Debt funding can be a crucial form of growth financing for start-ups and scale-ups, many founders do not consider it as an option when raising capital. Yet with the right product – and often when combined with equity investment – debt funding can help supercharge a promising company’s growth opportunities, taking them from startup to a market leader.
The Net Zero Technology Centre (NZTC) has opened applications for the 2024 cohort of its award-winning TechX Accelerator programme. Clean energy startups from around the world can now apply for a place on the programme and a share of the £1.2 million grant funding available (up to £100,000 for each startup).
Founders and entrepreneurs have to have a determination and resilience that often distinguishes them from those that are paid employees. It is not only that they have to find a gap in the market that they feel they can exploit, but they also have to have the confidence to back themselves to do that.
Settly, a HR platform for employee relocation, has raised €6 million from the French evergreen impact fund “2050” and Mediahuis Ventures, the Belgian venture capital fund of international publisher Mediahuis. It is Settly's first investment round after having single-handedly grown to over 50 employees in 7 European countries since its inception in 2019.
Upfront Diagnostics, a healthcare company focused on discovering novel biomarkers that can be applied to medical diagnosis, has announced a seed funding round of £1.6 million. The investment was led by APEX Ventures’ Medical Fund, following grant funding from SBRI Healthcare in partnership with Stroke Association, for Upfront Diagnostic’s patented blood-based diagnostic LVOne.
Dexory has secured $19 million in Series A funding led by European VC firm Atomico, with participation from existing investors Lakestar, Kindred, Capnamic, and Maersk Growth, the investment arm of the global logistics and container shipping company, Maersk. As part of this investment Atomico Partner Ben Blume will join Dexory’s board of directors.