Surge in megarounds signals strength in European tech sector
Major investment rounds are making a strong comeback in Europe, marking a significant rise in funding for innovative ventures. Climate tech is emerging as a key sector for investors interested in greener solutions and technologies.
Climate tech rising to the top
According to recent research by Sifted, Europe has witnessed a resurgence in funding activity in the first quarter of 2024 – notably in megarounds, with a total of 42 rounds exceeding $100 million. This marked the busiest quarter for large-scale investments since Q2 2022, reflecting a robust growth trajectory in the continent's startup and tech/AI ecosystem.
Climate tech received the lion's share of funding, with thirteen out of the top twenty largest deals going to companies within this sector. The megarounds hotspot list includes multiple companies from Sweden and Germany working in hydrogen, solar energy, EV tech and energy storage. Amsterdam was also at the top, with companies DataSnipper and Mews receiving megarounds funding.
In addition, seven of the top 10 best-funded EU startups in Q1 were in climate tech. They were followed by Picnic, Amsterdam’s online supermarket, at #8 in the consumer sector. These startups emerged as the frontrunners in securing substantial funding, accounting for 43% of the megarounds and dominating 13 of the top 20 fundraisers during the quarter.
Amsterdam’s thriving climate tech scene
As the continent continues to attract significant investment, it reaffirms Europe’s position as a formidable player in the global tech arena. While closer to home, Amsterdam boasts several climate tech companies and initiatives that are contributing to the region's overall tech ecosystem.
The city is a central hub for climate technology and collaborative efforts, exemplified by companies like Vandebron and Triple Solar. These entities focus on harnessing wind, solar, and biomass energy, as well as utilising PVT panels for gas-free heating and cooling. GoodFuels, is another Amsterdam-based company which is leading the transition towards fossil-free transportation, and Skytree contributes to the tech ecosystem by working on carbon capture technology.
Moreover, Amsterdam-based Carbon Equity, recently raised €100 million for its Climate Tech Portfolio Fund II, offering support for climate tech start-ups. Together, these initiatives contribute to the dynamic innovation landscape and highlight Amsterdam's dedication to fostering sustainable solutions and striving towards a greener future.
