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State of European Angels
Report 2023
State of European Angels
Report 2025
Early access to full report

The annual deep dive into the angel investment climate of Europe.

2025

About the report

This is the third edition of the State of the European Angels report, initiated by Ash Pournouri and Andreas Grape (Nordic Angels) in collaboration with BCG. The report combines quantitative market data with insights from leading angels across Europe to capture key trends shaping the startup and investment ecosystem in 2024 and early 2025. It provides a holistic view of the role of business angels and their evolving contribution to early-stage growth, as well as a deep dive into the crucial sectors driving Europe’s growth and innovation competitiveness.

Global uncertainty spikes despite easing inflation
01

Despite easing inflation and rates, global uncertainty hits a decade high in 2025

World uncertainty index

Source: World Uncertainty Index
GLOBAL VC ACTIVITY IS SHIFTING
02

Early-stage rounds declined as capital moved to late-stage deals with clearer exit paths

Total number of reported VC investment rounds globally (thousand)

Total value of VC investment rounds globally (B$)

Late stage (>  15M$)
Early stage (4M - 15M$)
(Pre-)Seed stage (0 - 4M$)
Note: Figures may not sum to total due to rounding
Source: Dealroom
Late stage (>  15M$)
Early stage (4M - 15M$)
(Pre-)Seed stage (0 - 4M$)
VC fundraising declined globally; yet Europe maintained resilience
03

While global VC fundraising decreased by ~40% annually from 2021, Europe gained relative share vs North America and Asia

Total capital raised by VC funds
by primary region focus

Europe
North America
Asia
Rest of World
Source: Preqin; BCG/Nordic Angels Analysis
Europe co-leads in seed funding but lags behind in total VC
04

Europe punches below its weight in VC funding, although outperforms in seed investments

Global VC funding relative to GDP

Investment share, 2024

17%

Europe

56%

North America
GDP¹ share, 2024

25%

Europe

30%

North America
1. GDP, share of world in nominal $-IMF; GDP of Europe, not European Union
Source: IMF; Dealroom
Top bar shows share of total global VC funding 2024, bottom bar shows share of global seed funding 2024 (0 - 4M$)  

Share of total global VC funding

2024

Share of global seed funding (0 - 4M$)

2024
Rest of world
Europe is narrowing the gap in early - stage dry powder
05

Europe is narrowing the gap in early-stage dry powder

Dry powder of early-stage VC funds by primary region focus

Europe
Asia
North America
Source: Preqin
Europe’s angel networks are consolidating and scaling
06

Angel networks are becoming larger and more capitalized with fewer groups pooling more members and capital

Number of business angel networks and federations in Europe

2020

400

2023

340

Source: European Business Angel Network
Angel investment cooled in 2023 after a record high year
07

Angel investors made fewer deals but
increased their average investment value

“As the macro environment becomes increasingly uncertain, more and more angel investors are focusing on their existing portfolio rather than new investments. Many early-stage startups are fighting for profitability or the next round”

— Sune Alstrup, Tech Investor

Number of reported deals with at least 1 angel investor in Europe
Average investment per company (€K)
Source: European Business Angel Network; Dealroom
VC in europe remains concentrated
08

Europe remains a concentrated VC market with Denmark as the only seed stage growth market in 2024

Funding amount in Europe in 2024

Total VC funding and change in % between ‘23-‘24
Seed-stage funding (0 -4M$) and change in % between ‘23-‘24
Source: Dealroom
Europe’s Key Sectors of Interest
09

Fueled by public non-dilutive funding, industrial demand and strong R&D, Europe is ahead in Climate Tech, Industrial Tech, Fintech and Deep Tech

European VC investments in 2024
CAGR ’14-’24
Deep Tech

21

B$

+30%

climate tech

15

B$

+28%

Fintech

9

B$

+18%

industrial tech

4

B$

+31%

Note: An investment may be tagged to multiple industry sectors; categories are not mutually exclusive
Source: Dealroom
Europe’s Key Sectors of Interest
10

Given historic underinvestment and fragmentation, AI, Health and Defense are of strategic importance for Europe & present clear growth opportunities

European VC investments in 2024
CAGR ’14-’24
AI

16

B$

+32%

Health

12

B$

+19%

Defence

1

B$

+47%

Note: An investment may be tagged to multiple industry sectors; categories are not mutually exclusive
Source: Dealroom
foreign Investors are focusing on Europe
11

Europe's early stage market is showing signs of optimism with inflow of foreign capital rising

“Periods of uncertainty have historically been some of the most successful times for early-stage investing. The time is now.”

— European Angel Investor

Europe
Other foreign
North America
Source: Capital IQ

European investors need to take more calculated risks and work collaboratively across the ecosystem

“The reason why the US [VC investing] climate is the way it is, is because of risk appetite. People are willing to make bets on other people. In Europe, people are much more conservative.”

— Petter Made, EWOR

Take calculated risks

Back exceptional founders with bold ideas that redefine industries, rather than over-focusing on proven business models

Improve collaboration

Build structured Angel-to-VC and cross-border partnerships where angels can act as accelerators for VC pipelines

Foster success conditions

Strengthen Europe's talent, late-stage capital, and regulatory alignment so founders can succeed and scale out of Europe

Startup Culture

Strong heritage of unicorns and startups which contributes to hubs’ access to talent, expertise and capital.

Hub Networks

Strong heritage of unicorns and startups which contributes to hubs’ access to talent, expertise and capital.

Environment

IMD’s World Competitiveness Ranking places Nordic countries high driven by efficient business legislation and societal framework.

Sector Hotspot

Nordics have developed significant lead relative to Europe in niche and growing sectors such as gaming.

Innovation

Nordics with significantly higher R&D spend as % of GDP vs. EU average driven by one of the highest global levels of public funding.

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