Weekly tech update from Europe: More than €3.1 billion invested in the tech sector during the initial week of July
In the tech landscape of Europe, June 2021 witnessed a shift in funding trends compared to May. Despite a slight decrease in the number of deals, the total amount raised by tech companies saw a notable increase.
European tech companies raised a total of approximately €6.5 billion across 323 deals in June 2021, marking an 18% increase in total funding compared to May 2021's €5.5 billion raised over 341 deals.
The UK emerged as the leading country in terms of funding raised in June, with €1.8 billion. This figure was higher than what was raised in May (€1.4 billion).
The sector that attracted the most funding in May was software, with €1.3 billion, while June saw fintech take the lead, though with a lower total of €957.1 million. The fintech sector raised less funding in June than the software sector raised in May, and the number of deals in the fintech sector in June was less than the number of deals in the software sector in May.
Notable large rounds in June included Proxima Fusion's €130 million Series A for fusion energy tech and Helsing's €600 million funding in defence tech, making it one of the largest funding rounds of the year. Other significant investments were made in sectors such as fusion energy and defence tech, highlighting a shift towards capital-intensive advanced technology areas.
Despite the total funding increase in June, the number of deals slightly declined from May (323 vs. 341), indicating larger average deal sizes in June. Over 85 tech funding deals were tracked last week, and these events and news stories were geographically dispersed across Europe.
In addition to the funding deals, over 15 exits, M&A transactions, rumors, and news stories were also observed, adding to the vibrant tech ecosystem in Europe. Last week saw numerous tech industry events across Europe, with more than 85 significant events recorded.
In summary, June 2021 saw fewer but larger funding deals in European tech compared to May, leading to a notable increase in total capital raised. The UK was the leading country in terms of funding raised, and significant investments were made in sectors such as fusion energy and defence tech. The tech industry in Europe continues to thrive, with numerous events and news stories occurring across the continent.
- The fintech industry witnessed a change in funding trends in June 2021, as it attracted the most funding among all sectors, amounting to €957.1 million.
- In the technology-driven finance landscape of Europe, the flourishing fintech sector experienced less number of deals in June compared to May, but still managed to raise a substantial amount, underscoring the sector's significant role in large funding rounds.
