European start-ups: the 2 figures that give hope for record investments in 2014
2014 could mark the raising of 5 billion dollars by European startups if we stick to the dynamism of the first months of the year.
1- A forecast of 5 billion in 2014
Good news for the creators of startups looking for funding: 5 billion dollars could be invested in 2014 in European “young shoots” according to an Informilo study based on figures from Dow Jones VentureSource. A record forecast! According to the American financial information base, the level of investments in European startups will continue to grow steadily since its lowest in 2009.
2 – 27% increase in investments in the first quarter
This optimism can be explained by the already significant investments made during the first four months of the year. Over the period, 1,223.79 million dollars were invested, compared to 963.35 million euros in the first quarter of 2013. A 27% increase in the amount, which is accompanied by an equally exceptional number of transactions – 261 – or 20% more than last year. This data provided by VentureSource was collected through surveys of professional firms and interviews with business leaders. They relate only to equity investments in the first fundraising in innovative companies.
Since the beginning of this year, the sector champion in this matter has been financial technology, which generally offers platforms which will act as an interface between the financial markets, via a broker, in order to make life easier for investors. Financial services thus achieved a solid first semester: between January and March 2014, investments rose by 177%. Looking in more detail, it seems that the majority of these funds were intended for financial institutions and services, which are experiencing an impressive increase of 1,227% on the Old Continent in terms of first fundraising, compared to the year latest. According to Dow Jones VentureSource, if we go by figures from the start of the year, technology projects will particularly attract capital and 2014 could well be a record year.
However, these optimistic forecasts should not obscure the considerable gap that remains between the levels of investment in American and European companies. Investments in high-tech remained nearly three times greater across the Atlantic over 2013 as a whole.