Q2 2013: UK Start-ups Continue to Raise More Venture Capital Investment Than Their German and French counterparts

According to CrunchBase data, total new capital invested in the EU tech industry rose from $861 million in Q1 2013 to $870 million in Q2. The data, which was extracted on 24th June, breaks down venture capital raised by round type, investor, company, geography and more.

In the second quarter of 2013, $870 million was invested in over 185 rounds. The rounds break down to 81 angel rounds, 46 Series A, 14 Series B, 10 Series C and later, and 34 unattributed venture rounds. These results exclude later-stage investments, such as private equity and post-IPO investments.

  • The Top 10 of European countries* by total amount raised by start-ups in Q2 2013 was in descending order: the UK, France, Germany, Spain, Ireland, Switzerland, Sweden, Norway, Finland and the Netherlands

FIGURE 1

  • The UK still dominates other European countries both in terms of number of rounds and total amount raised, although it was the only country in the Top 8 that saw a drop in amount raised compared to Q1 2013 (c.-30% decline quarter-on-quarter and -68% year-on-year)
  • UK companies raised $225 million in 70 rounds in Q2 2013, while France raised $178 million in 20 rounds, Germany raised $118 million in 18 rounds, Spain $85m in 16 rounds and Ireland $74m in 8 rounds
  • The most active investors in the first 6 months of 2013, in terms of number of rounds they participated in, were in descending order: Eleven (headquartered in Sofia), Index Ventures (London), Crowdcube (Exeter), London Business Angels, and North West Fund (Warrington). The top 50 is as follows:

FIGURE 3

All data for this post comes from CrunchBase, TechCrunch’s free database for start-ups.

Note:

* Not all funded companies have a category and/or region set. Most do, but not 100%, so there is a bit of a discrepancy across the data

These 30 VC-backed companies are creating jobs faster than any other in Europe…


In total 1,465 job positions in VC-backed start-ups were listed on the Ventureloop database over the last 7 weeks (Jan 15 to Feb 28). By splitting these jobs by country and VC fund backers I  identified in my previous post (published last Saturday) the list of Top 15 VC funds in Europe for the period Jan-Feb 2013.

I have now also split these jobs by start-up and industry segment to produce the list of Top 30 EU start-ups over the same time period and to get a feel for industry segment dynamism by country. The results are presented below:

Top 30 EU start-ups by job creation

High-level comments:

– the two biggest job creators were King.com and Spotify –  both have a predominant footprint in Sweden

– Criteo is ranked 3rd and is the only start-up with a majority of job creation in France…

– 9 of the top 30 start-ups created jobs in 3 or more of the 5 EU countries analysed here, highlighting that these companies have already undergone significant geographic expansion

– c.57% of the Top 30 companies had a majority of job creation in the UK

Top Tech segments by job creation in Europe in Jan-Feb 2013

High level comment: Digital gaming, Digital advertising and Digital music are the most important Tech segments in Europe.

Industry segment dynamism in the Top 5 EU countries in Jan-Feb 2013

High level comments (Note: the above chart was based on an industry classification of the top 43 start-ups, which represented 53% of total job creation in Jan-Feb 2013):

– the UK is the most diversified start-up eco-system, with no industry segment representing more than 16% of job creation

– by contrast, Sweden had two segments representing more than 27% of job creation (Digital games and Digital music) – highlighting that the Swedish eco-system is still young and may currently be over-reliant on few major but recent success stories

– the German start-up scene enjoys a level of maturity that seems to sit in between the UK and Sweden, with a reasonable coverage of key Tech industry sectors