It is always interesting to take a step back and see how money valuations are performing across the world. This week’s view is the European venture capital (VC) valuations.
Europe Angel & Seed Pre-Money Valuations
The first view is the angel and seed pre-money valuations by quartile. Amazingly, angel and seed pre-money valuations continue to explode upward. The most recent average valuation stood at 7.2 million euros and the 75th percentile of valuations stood at 7.5 million euros.
Perhaps even more amazing than the average and 75th percentile valuations are the median and 25th percentile values. The median valuation was 3.9 million euros and the 25th percentile (remember, these are the lower end of the early-stage companies receiving VC money) was 1.9 million euros. Value inflation has hit early-stage European VC-backed companies, big time!
Angel and Seed Deal Sizes
The next view is angel and seed deal sizes by quartile. Some of these figures are incredible to see. The most recent estimate of the average deal size in 2021 is 2.3 million euros. For the 75th percentile of companies, the deal size reaches 2.4 million euros. The median deal size is 1 million euros and the 25th percentile is 0.4 million euros. Demand for early-stage investing options is still quite healthy across some of Europe’s tech hubs.
Late-Stage Pre-Money Valuations
The next view is late-stage pre-money valuations. Give that we just saw some incredible numbers for early-stage pre-money valuations, one might think that late-stage pre-money valuations might be through the roof. If you thought that, in some cases, you would have been spot on.
The following graphic shows the average late-stage pre-money valuation at a whopping 382.3 million euros. Simply amazing. Northvolt’s 2.3 billion funding round in the second quarter of 2021 had perhaps a little to do with the massive increase in average valuation across Europe. With the average zooming ahead, did the other measures of late-stage pre-money valuation confirm such rapid increase in values?
The answer is, generally, yes. The 75th percentile of companies rose to 75.4 million euros, while the median rose to 20.4 million euros. Even the “lowly” 25th percentile of late-stage companies came in with pre-money valuations of 8.0 million euros. Simply, simply amazing.
Summing Up
Overall, venture capital investing is alive and well across the Europe. Driven by the potential for large returns and investing firms swath with investable cash, early and late-stage companies seeking venture capital investment are in a very good position today. May the good times live on forever.
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