French VC agency Idinvest has compiled some knowledge concerning the European tech ecosystem. The agency has determined to give attention to client tech basically, and there are some attention-grabbing developments that I’m going to interrupt out right here. You possibly can read the full report here.
The crew has analyzed and surveyed 1,500 firms over a number of months. And Idinvest has recognized rising stars in a number of totally different verticals, corresponding to fintech, mobility, healthcare or journey. If a startup has raised greater than €100 million and generates over €1 million in income, Idinvest considers them as giants already.
Lesson #1: VC funding is rising at a sooner tempo in Europe than in the remainder of the world
Discover that bounce from €4.Four billion in 2014 to €16.6 billion in 2019.
Lesson #2: The European fintech growth is actual
Fintech is now the biggest vertical in Europe. On common, European startups entice 16% of world VC investments. However Europe is grabbing an even bigger piece of that pie with fintech as European fintech startups have attracted 26% of whole VC investments in that area.
And it’s not simply challenger banks, corresponding to N26, Monzo or Revolut. There are buying and selling startups, lending startups, API-driven firms and extra.
Lesson #3: Mobility is fragmented
Whereas mobility is a large vertical in Europe, there are numerous of gamers that do roughly the identical factor — a number of scooter startups (Voi, Dott, Tier…), multiples ride-hailing startups (Bolt, Heetch, FreeNow, Cabify…), and so on.
A few of them are thriving, however you’re not going to see any of the massive names you’d anticipate within the record of giants as these firms are usually not European — Uber, Didi, Fowl… In different phrases, Europe is usually a quick follower on this area, and it’s been working pretty nicely.
Lesson #4: Well being is regulated as hell
This isn’t stunning, however European healthcare startups appear to be principally lively in Europe. Equally, American healthcare startups don’t appear to have an enormous presence in Europe.
I personally suppose European healthcare startups have a shot at changing into world leaders for 2 causes. First, it’s a privacy-sensitive trade and European startups are likely to care extra about privateness as a result of authorized framework. Second, the tech lash towards massive tech firms, corresponding to Google, Fb, Amazon, Microsoft and Apple, goes to be significantly robust with healthcare merchandise.
Lesson #5: Meals startups may reshape cities
Let me quote Idinvest’s report immediately right here as a result of it’s spot on: “Within the Center-Age, posting homes turned inns to feed and provide relaxation to vacationers. Within the 20th century, McDonald’s eating places grew exponentially across the U.S. highway infrastructure. Previously 18-24 months, now we have seen the rise of darkish kitchens (Keatz, Taster) and darkish groceries (Glovo) that are each piggybacking this new meals supply infrastructure and including to it an actual property layer. Darkish kitchens and groceries are promoting merchandise completely by means of supply. The client dealing with location of a restaurant or a grocery store is changed by a less expensive actual property location optimized for order preparations.”
Lesson #6: Journey is an even bigger trade in Europe than within the U.S.
Vacationers spend more cash in Europe than within the U.S. On condition that many journey startups begin with a easy market to enhance liquidity, pricing, listings, discovery or open up an entire new phase, it is sensible to begin it from Europe.
Lesson #7: Gaming is massive in Europe
Gaming, and specifically cellular gaming, has been thriving in Europe. Many informal video games have emerged from European startups. There’s no European Netflix, however Minecraft, Sweet Crush Saga and Indignant Birds had been all born in Europe.
All the remainder
Idinvest’s report covers different verticals however I don’t have a lot so as to add. I’m simply going to share the mapping of these verticals and you may read the report if you wish to dig deeper.