VC valuations in Europe reached record highs at each quartile and across all financing stages through H1 2021. A multitude of records have already been broken across the European VC ecosystem in 2021. VC-backed companies have broadly increased their valuations. Globally, major tech companies have consolidated their leading positions, and startups have shown rapid growth as sectors such as e-commerce, cybersecurity, and remote work have boomed.

The increased presence of nontraditional investors in the European VC ecosystem continues to set records. Over the last two years, the deluge of capital flowing into the VC ecosystem has created upward pressure on round sizes and valuations, resulting in record peaks. The pursuit of growth has not slowed as reduced interest rates, low return profiles in other investment strategies, and public equity volatility have pushed backers to inject capital into VC.

The aggregate value and quantity of unicorns soared to new records in H1 2021. The remarkable growth in aggregate unicorn value in the European ecosystem has garnered global attention, with some of the most valuable unicorns seeing drastically increased valuations. Moreover, a flurry of new unicorns have been minted in 2021, further adding to Europe’s impressive aggregate unicorn valuation statistics. 

Across all quartiles, post-money valuations upon exit in H1 2021 paced well above 2020 figures. Exits for the most-valuable VC-backed companies in Europe have grown in size. The rejuvenated exit market has been driven by high-profile exits, as overall exit value generated in Europe set a record. Tech companies have taken advantage of favourable market conditions and looked to generate enhanced returns after the COVID-19 pandemic pushed individuals online.