VCs invested €96 billion in almost 27,000 European companies over last 10 years, new Invest Europe report shows

• European VCs deliver 23% net annual returns over last 10 years

• Long-term VC net returns outperform public markets, create jobs far ahead of European average

• 900,000 employees working in VC-backed European companies 2021

Brussels, Belgium, 28 September 2023, 1100 AM CET - Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published its new Venture Capital: Fuelling European Innovation Report, highlighting European venture capital’s contribution to a stronger European economy and a better society.

Drawing on Invest Europe's extensive research into industry trends, the Venture Capital: Fuelling European Innovation Report digs deeper than ever into the data, including figures on fundraising, investment, returns to investors and job creation, to provide an unparalleled analysis of Europe’s venture capital industry. The aim is to show how venture capital managers across Europe – with the support of their long-term investors – are backing the tech and biotech pioneers that will deliver a better tomorrow, while feeding an ecosystem that is delivering far-reaching benefits to Europe’s economy and its citizens today.

• VCs invested €96 billion in almost 27,000 European companies (start-ups, seed funding) over the past decade, including more than €18 billion in 2022, illustrating the strong growth in support for creative ideas and innovative companies. The data also shows the step change in European VC fundraising over the five years to 2022, including an eight-fold increase in capital raised by Nordic VCs and a three-fold increase for DACH managers, as capital committed to funds reached a record €23 billion last year.

• The report highlights European VC’s 12% net return since inception, far outperforming the MSCI Europe benchmark, which returned 7.67% p.a. over the same period. Recent performance has accelerated, with European VC delivering a net return of 23.07% over 10 years, creating wealth for long-term investors including funds of funds investing on behalf of pension funds, family offices, and corporate investment divisions.

• Invest Europe’s Venture Capital: Fuelling European Innovation Report outlines the role of venture capital as a cornerstone of European economies and communities, with the ecosystem providing jobs for nearly 900,000 people at the end of 2021. Companies backed by venture capital have generated double-digit employment growth in most years since 2018, including 15.3% net new jobs in 2021, compared to 1.2% growth for all European companies.

European venture capital dry powder also rose to a record high of €53 billion in 2022, giving the industry increased capacity to support dynamic and innovative start-ups across the continent, according to Invest Europe’s recently published report, Positioned for the Challenge: Capital Under Management & Dry Powder 2022.

In addition to its in-depth data analysis, the Venture Capital: Fuelling European Innovation Report also presents high-profile case studies, including BioNTech, the pioneering developer of the first mRNA vaccine against COVID-19 approved in Europe and the US, to demonstrate the role of VCs in discovering and driving the innovations that can save lives.

Eric de Montgolfier, CEO of Invest Europe, commented:

“European venture capital is the fuel that keeps the engine of innovation running. With the help of VC investment and expertise, European start-ups are at the forefront of developments in software and cloud computing, driving deep tech advances in AI and robotics, creating cutting-edge biotech treatments for cancer and infectious diseases, and pushing the boundaries of cleantech solutions for a cleaner, greener future.”

“Europe’s venture capital and start-up ecosystem is not only producing transformative technologies that will change people’s lives, it is also generating social and economic benefits that can improve livelihoods, from new jobs to wealth creation for long-term investors.”

The Venture Capital Report joins Invest Europe’s extensive library of publications designed to inform members, businesses, investors, policymakers and the general public at large about the role and benefits of venture capital and private equity investment. These include last year’s Success Stories: VC & Life Sciences which showcased venture capital’s role in world-leading biotech innovations, while Invest Europe’s ground-breaking Private Equity at Work report highlights the job-creating power of venture capital investment across the continent.

Members of Invest Europe may click here to download a copy of Invest Europe’s Venture Capital: Fuelling European Innovation Report.

About Invest Europe

Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. We have over 650 members, split roughly equally between private equity, venture capital and limited partners –with some 110 associate members representing advisers to our ecosystem. Those members are based in 57 countries, including 42 in Europe, and manage 60% of the European private equity and venture capital industry’s €1,004 billion of capital under management. Businesses with private capital investment employ 10.5 million people across Europe, 4.5% of the region’s workforce.