There’s a new wave of optimism in the European tech scene as european tech vc investments have climbed by 12% in 2024, reaching $29.3 billion by June. If this trend continues, 2024 is set to become the third most active year for VC funding in Europe, according to Dealroom.
The energy sector has emerged as the frontrunner, securing $5.6 billion in the first half of 2024. This builds on last year’s momentum, where energy consistently topped the funding charts each quarter. Hydrogen companies, in particular, have drawn significant investments. France’s HysetCo raised €200 million for hydrogen taxis, and Belgium’s Tree Energy Solutions secured €140 million for green hydrogen-derived electric natural gas.
Artificial intelligence is another burgeoning sector, now accounting for 18% of Europe’s VC funding—up from 10% a decade ago. London-based Wayve, an AI startup focused on autonomous vehicles, led with a $1.1 billion Series C round. Generative AI also saw record investments, attracting $2.6 billion in Q2 alone, constituting 10% of the continent’s total VC funding.
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Notable Investors and Expectations
Jeannette zu Fürstenberg, Managing Director and Head of Europe at General Catalyst, shared her insights to TNW on the market’s trajectory: “We are at the dawn of one of the largest technology shifts in history. As industry leaders grasp the transformative power of generative AI, new business models and products are emerging.” General Catalyst co-led a $640 million Series B round for Paris-based Mistral AI, a company celebrated for its groundbreaking technologies and European values.
Regional Highlights
The UK leads in VC investments, raising $9.4 billion, with London firms alone attracting $6.8 billion. Cambridge also made the top 10 European cities for funding, raising $664.6 million, an 83% increase from 2023. France follows with $4.3 billion, with Paris turning into a significant AI hub. Geneva has also seen a prosperous first half, with notable investments in biopharma, digital banking, and drug development companies.
AI’s Unique Position in Europe
Zu Fürstenberg believes Europe holds a unique position in leveraging AI for economic growth, coining the term “European RenAIssance.” She emphasized the potential for AI to boost productivity and build globally successful tech companies on the continent.
With the substantial rise in VC investments, Europe is poised for significant technological advancements and economic growth in the tech sector throughout 2024.
