Investment firms continue to pour more money into European startups
WSJ reports that investment firms continued to pour more money into European startups in the third quarter of 2014, pumping nearly €2.3 billion into more than 300 companies.
The biggest portion – about 40% – of that went to companies in the financial services or general business support arenas, followed by consumer services and health care companies.
The larger quarterly haul primarily benefited more mature companies, which raised €883.6 million, nearly double the €456.1 million raised by the same types of companies in the third quarter of 2013.
For example, the largest single investment was a $350 million injection into Berlin-based Delivery Hero, a food delivery service that has raised several previous rounds of investment since its founding in 2011.
The data also shows that funding for young companies fell 40% in the third quarter of 2014 compared with the same period last year, falling to just over €713 million from nearly €1.2 billion.
The full-year pace of investment for newer companies was also down slightly, with €2.5 billion raised in the first three quarters of the year compared with €2.7 billion for the same period in 2013.