In 2024, European technology companies made significant strides in securing investment, raising over €74.4 billion across more than 3,700 deals, representing a 10 per cent increase compared to the previous year's €67.6 billion. Nevertheless, this total remains approximately 30 per cent lower than the peak of €101.2 billion reached in 2022. The figures indicate a positive shift in investor sentiment, aligning with the broader trends in the technology sector, as reported by Tech.eu.
A substantial portion of the 2024 funding was directed towards debt financing for the construction of gigafactories, particularly notable examples being Northvolt, Stegra, and Automotive Cells Company (ACC). Meanwhile, other companies focused their efforts on research and development (R&D) and international expansion.
Noteworthy among the companies that raised significant funding this year includes Northvolt from Sweden, which attracted €5.6 billion to support its mission of producing sustainable lithium-ion batteries. However, this success came with challenges, as in a later development, Northvolt filed for Chapter 11 bankruptcy protection in the United States, which highlights potential vulnerabilities within the European battery manufacturing landscape.
Stegra, formerly known as H2 Green Steel, secured €4.7 billion to facilitate the establishment of the world’s first large-scale green steel plant in Boden, Sweden. This investment underscores the push toward sustainable manufacturing practices, particularly in the high-emission steel industry.
Another major player, ACC, raised €4.4 billion in debt financing to aid in the construction of three gigafactories for lithium-ion batteries across France, Germany, and Italy. This initiative is a part of a broader effort to meet the rising demand for electric vehicles and improve the supply chain resilience in Europe.
Further down the list of fundraisers, Enpal from Germany raised €1.1 billion to enhance its support for residential solar energy solutions. This amount reflects the sector's growing momentum towards renewable energy and sustainability.
In the finance sector, SumUp, based in the UK, raised $1.5 billion with a mission to provide accessible payment solutions for small businesses. This investment marks a significant milestone, showcasing the ongoing digital transformation within financial services.
The competition in the tech space was driven further by Wayve, another UK company noted for its innovations in autonomous vehicle technology, which raised $1.05 billion in a funding round led by SoftBank. This includes partnerships with major tech players like NVIDIA and Microsoft, signalling robust investor confidence in the future of autonomous and electric transport.
In the realm of artificial intelligence, Mistral AI from France raised €615 million, solidifying its role as a key player in developing open-weight generative AI models tailored for various business applications. Meanwhile, Poolside.ai, also focused on AI, raised $400 million to enhance its software engineering capabilities, highlighting the ongoing integration of AI solutions across industries.
These developments reflect a landscape rich with investment opportunities, as European tech companies increasingly recognise the need to innovate and adapt to emerging challenges while navigating the complexities of global market conditions. The European tech sector appears well-positioned to leverage these investments to influence and shape future business practices. For a more in-depth analysis of investment trends, as well as geographical and industry performance, Tech.eu will provide a detailed annual report titled "European tech 2024: The big picture."
Source: Noah Wire Services