Global venture capital company Accel has raised funding of US$ 650 million to invest in European and Israeli startups. This is seen as a sign that the venture capital market is starting to show signs of recovery.
Harry Nelis, a long-time partner at Accel, said the technology ecosystem in particular in Europe had evolved drastically in the nearly 25 years since it opened its London office as a separate fund in 2001.
“The environment has changed dramatically since then. People ask us, can Europe generate US$1 billion in revenue?” said Nelis quoted from CNBC, Tuesday (14/5/2024).
“Now, there are more than 360 venture-backed unicorns across Europe and Israel, and the entire ecosystem has evolved from one that raised around US$ 1 billion in capital to US$ 66 billion by 2023,” he added. Please wait while you are redirected...or Click Here if you do not want to wait.
Nelis said Europe now produces a more promising talent pool thanks to experienced employees from other companies who have achieved unicorn status and become bar company founders
A report the company released last year citing Dealroom data showed that employees from 248 venture-funded unicorn companies in the region had driven 1,451 new tech startups across Europe and Israel.
Nelis noted that there are developing countries in Europe that are less noticed by investors, but show great potential in technological innovation.
He cited Lithuania and Romania as examples of countries where major technological successes are beginning to emerge. In Lithuania, for example, second-hand marketplace Vinted is now a US$ 4.5 billion unicorn, while in Romania, UiPath has attracted a US$ 10.9 billion valuation on public markets.
An early investor in Facebook and music streaming service Spotify, Accel expects to invest in between 25 and 30 companies from its latest early-stage fund.
