European startups lead the world for impact-focussed investment
Impact investing accounts for over 15% of total European VC investment, 3x compared to a decade ago, and double the global average at 7%.
New research from Dealroom, supported by ImpactCity, Danske Bank and Tech Nation shows that European startups are more impact-focussed than their global peers. €6B was invested into European impact startups in 2019, making up over 15% of all VC investment in the region. This research shows that what was once fringe investment and innovation activity is finding traction and proven success in Europe, becoming a core part of European innovation ecosystems.
A new database of the Impact and Innovation ecosystem, catalogues 4,939 startups and scaleups, 7,472 funding rounds, and 232 exits of innovative companies addressing the world’s most pressing challenges. The open-access platform powered by Dealroom, with ImpactCity, Danske Bank and Tech Nation, draws on the partners’ collective impact, data and innovation expertise, to create a new digital home for impact and innovation, drawing on the support and insight of supporting partners Progress Tech Transfer Fund, +impact, Impact First Investments, GITA, Exponential View, Ananda Impact Ventures and Planet+.
Climate tech startups, covering among other niches electric vehicles (Arrival, Lilium), battery technologies (Northvolt, Blue Solutions), and alternative protein (Oatly, Ynsect), have attracted the most investment of any Impact sub-sector, with European players emerging as global market leaders. These European companies working to tackle climate change and its impacts have attracted €9.8B in VC investment in the last five years.
Europe is home to more than 60 dedicated Impact-focussed VC funds, while established European VCs are also increasingly backing impact startups.
These startups are fueling growth and job creation. Crucially, these startups are still hiring, the Impact & Innovation database lists over 3,351 jobs in impact startups that are currently actively hiring.
The Impact and Innovation platform will bring together startups, investors, non-profits, governments, and corporates in one open-access data-driven platform. The new mapping of the global impact and innovation ecosystem will facilitate data-driven policy and decision making, the sharing of cross-industry knowledge, and will foster the partnerships required to help next generation innovators succeed on the global stage.
Dealroom.co is the foremost data provider on startups, growth companies and tech ecosystems in Europe and around the globe. Founded in Amsterdam in 2013, Dealroom.co now works with many of the world’s most prominent investors, entrepreneurs and government organizations to provide transparency, analysis and insights on startups and venture capital activity.
The Hague is the city for entrepreneurs who want to build a better world. As ImpactCity, The Hague offers a wide range of opportunities and services to entrepreneurs and other impact makers with innovative solutions. The city encourages “doing good & doing business” in all kinds of ways with practical help: assistance with settling, startup hubs, possibilities for financing and a great infrastructure. The local and at the same time unique international network of The Hague connects NGOs, research centers, knowledge institutes, established companies, governments and many young and creative entrepreneurs who want to make a difference, creating an unique and leading impact ecosystem.
With figureheads like the Peace Palace, the International Court of Justice, Europol and the International Criminal Court, The Hague is worldwide known as the international city of peace and justice. Every day, tens of thousands of people in The Hague are working towards a better future and solve global problems. Together they work, share their knowledge and develop new ideas.
About Tech Nation
Tech Nation is the growth platform for tech companies and leaders. Tech Nation fuels the growth of game-changing founders, leaders, and scaling companies so they can positively transform societies and economies. We provide them with the coaching, content, and community they need for their journey in designing the future. Tech Nation has years of experience facilitating and helping UK tech companies scale, both at home and abroad. Over 20 cohorts and 600 companies have successfully graduated from Tech Nation’s growth programmes. Alumni include Skyscanner, Darktrace, and Monzo.
Danske Bank is a Nordic bank with strong local roots and bridges to the rest of the world. For more than 145 years, we have helped people and businesses in the Nordics realise their ambitions.
We want to help our customers become financially confident and help them build their lives and businesses on a solid financial foundation. We aim to create long-term value for all our stakeholders – our customers, shareholders and the societies we are part of – and our vision is to be recognised as the most trusted financial partner.