French VC firm Idinvest has actually assembled some information about the European tech community. The company has actually decided to focus on consumer tech in basic, and there are some interesting trends that I’m going to break out here. You can read the complete report here. The group has analyzed and surveyed 1,500 companies over multiple months. And Idinvest has determined rising stars in numerous various verticals, such as fintech, travel, health care or mobility. If a startup has actually raised more than EUR100 million or has actually been obtained, Idinvest considers them as giants already.
Lesson # 1: VC financing is growing at a faster pace in Europe than in the remainder of the world
Notification that jump from EUR4.4 billion in 2014 to EUR16.6 billion in 2019. Lesson # 2: The European fintech boom is real Fintech is now the largest vertical in Europe. On average, European start-ups
draw in 16 % of worldwide VC investments. Europe is getting a bigger piece of that pie with fintech as European fintech startups have drawn in 26 % of overall VC investments in that space. And it’s not just opposition banks, such as N26, Monzo or Revolut. There are trading start-ups, lending start-ups, API-driven business and more. Lesson # 3: Mobility is fragmented
While movement is a big vertical in Europe, there are countless of gamers that do basically the very same thing– numerous scooter startups(Voi, Dott, Tier … ), multiples ride-hailing start-ups(Bolt, Heetch, FreeNow, Cabify …), and so on. Some of them are flourishing, but you’re not going to see any of the big names you ‘d anticipate in the list of giants as those business are not European– Uber, Didi, Bird … In other words, Europe is mostly a fast fan in this area, and it’s been working fairly well.
Lesson # 4: Health is regulated as hell
This isn’t unexpected, but European health care start-ups seem to be mainly active in Europe. Likewise, American healthcare start-ups don’t seem to have a substantial presence in Europe. I personally believe European healthcare startups have a shot at becoming worldwide leaders for two factors. It’s a privacy-sensitive industry and European start-ups tend to care more about privacy due to the legal framework. Second, the tech lash against huge tech companies, such as Google, Facebook, Amazon, Microsoft and Apple, is going to be especially strong with health care items.
Lesson # 5: Food start-ups might reshape cities
Let me price estimate Idinvest’s report directly here because it is spot on:”In the Middle-Age, posting houses became inns to feed and use rest to travelers. In the 20th century, McDonald’s dining establishments grew significantly around the U.S. road infrastructure. In the previous 18-24 months, we have actually seen the increase of dark kitchens(Keatz, Taster) and dark groceries (Glovo) which are both piggybacking this new food shipment facilities and adding to it a property layer. Dark cooking areas and groceries are offering products specifically through delivery. The consumer facing area of a restaurant or a grocery shop is replaced by a more affordable property area optimized for order preparations.”
Lesson # 6: Travel is a larger industry in Europe than in the U.S.
Travelers invest more money in Europe than in the U.S. Given that numerous travel start-ups start with a basic market to improve liquidity, pricing, listings, discovery or open a whole brand-new sector, it makes good sense to start it from Europe
. Lesson # 7: Gaming is huge in Europe
Video gaming, and in particular mobile video gaming, has actually been thriving in Europe. Many casual games have actually emerged from European startups. There’s no European Netflix, however Minecraft,
Sweet Crush Legend and Angry Birds were all born in Europe
. All the rest Idinvest’s report covers other verticals but I don’t have much to include. I’m simply going to share the mapping of those verticals and you can checked out the report if you wish to dig deeper.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.