French VC agency Idinvest has compiled some information in regards to the European tech ecosystem. The agency has determined to concentrate on shopper tech on the whole, and there are some fascinating traits that I’m going to interrupt out right here. You can learn the total report right here.
The crew has analyzed and surveyed 1,500 corporations over a number of months. And Idinvest has recognized rising stars in a number of completely different verticals, comparable to fintech, mobility, healthcare or journey. If a startup has raised greater than €100 million and generates over €1 million in income, Idinvest considers them as giants already.
Lesson #1: VC funding is rising at a sooner tempo in Europe than in the remainder of the world
Notice that soar from €4.Four billion in 2014 to €16.6 billion in 2019.
Lesson #2: The European fintech increase is actual
Fintech is now the most important vertical in Europe. On common, European startups appeal to 16% of worldwide VC investments. But Europe is grabbing a much bigger piece of that pie with fintech as European fintech startups have attracted 26% of complete VC investments in that area.
And it’s not simply challenger banks, comparable to N26, Monzo or Revolut. There are buying and selling startups, lending startups, API-driven corporations and extra.
Lesson #3: Mobility is fragmented
While mobility is a large vertical in Europe, there are numerous of gamers that do roughly the identical factor — a number of scooter startups (Voi, Dott, Tier…), multiples ride-hailing startups (Bolt, Heetch, FreeNow, Cabify…), and many others.
Some of them are thriving, however you’re not going to see any of the large names you’d count on within the checklist of giants as these corporations are usually not European — Uber, Didi, Bird… In different phrases, Europe is usually a quick follower on this area, and it’s been working pretty properly.
Lesson #4: Health is regulated as hell
This isn’t stunning, however European healthcare startups appear to be principally lively in Europe. Similarly, American healthcare startups don’t appear to have an enormous presence in Europe.
I personally suppose European healthcare startups have a shot at changing into international leaders for 2 causes. First, it’s a privacy-sensitive trade and European startups are inclined to care extra about privateness because of the authorized framework. Second, the tech lash towards massive tech corporations, comparable to Google, Facebook, Amazon, Microsoft and Apple, goes to be notably sturdy with healthcare merchandise.
Lesson #5: Food startups might reshape cities
Let me quote Idinvest’s report straight right here as a result of it’s spot on: “In the Middle-Age, posting homes turned inns to feed and provide relaxation to vacationers. In the 20th century, McDonald’s eating places grew exponentially across the U.S. highway infrastructure. In the previous 18-24 months, now we have seen the rise of darkish kitchens (Keatz, Taster) and darkish groceries (Glovo) that are each piggybacking this new meals supply infrastructure and including to it an actual property layer. Dark kitchens and groceries are promoting merchandise solely by means of supply. The buyer dealing with location of a restaurant or a grocery store is changed by a less expensive actual property location optimized for order preparations.”
Lesson #6: Travel is a much bigger trade in Europe than within the U.S.
Tourists spend more cash in Europe than within the U.S. Given that many journey startups begin with a easy market to enhance liquidity, pricing, listings, discovery or open up a complete new section, it is sensible to start out it from Europe.
Lesson #7: Gaming is massive in Europe
Gaming, and specifically cellular gaming, has been thriving in Europe. Many informal video games have emerged from European startups. There’s no European Netflix, however Minecraft, Candy Crush Saga and Angry Birds have been all born in Europe.
All the remainder
Idinvest’s report covers different verticals however I don’t have a lot so as to add. I’m simply going to share the mapping of these verticals and you may learn the report if you wish to dig deeper.