Venture capital firms are the lifeblood of tech startups. Without funding, many companies would never be able to afford the R&D, marketing or legal resources necessary to take their business to the next level.
Moreover, without venture capital, many promising start-ups would be incapable of testing their business models and validating their assumptions with outside investors.
As a new startup business owner, you may want to know which institutions you can approach for your company’s funding. A VC firm is an institution that focuses on venture capital through equity investments made by accredited investors.
In other words, if you want your company to succeed in today’s cutthroat tech startup market — where even the best ideas struggle to find financial backing — you need a VC firm.
In another blog post, we introduced top 10 best VC firms in the US.
Read on to learn more about the best VC firms in Europe and how they can help your company grow.
How do we pick the best VC firms in Europe?
In order for a company to achieve success in the tech industry, it must secure significant funding from investors. Venture capital firms invest in tech start-ups as well as new businesses elsewhere in the economy, providing risk capital backed by the expertise of professional investors.
For this reason, it’s important to understand the role of venture capital firms. In the beginning of a start-up’s journey, venture capital firms provide financial support, which may or may not lead to the commercialization of a new product or service.
In this blog post, we provide a guideline for you to raise funding in the seed stage.
In order to determine the best venture capital firms in Europe, we looked at the following criteria:
- How successful are the firms in terms of exits?
- How well do they collaborate with their portfolio companies?
- How are their investment criteria?
- How do their teams look like?
- How selective are they with their applicants?
1. Seedcamp (UK)
Seedcamp is a venture capital firm that invests in early-stage tech companies. As, one of the best VC firms in Europe, Seedcamp, identifies and makes early investments in top founders who are taking on major global markets and leveraging technology to address pressing issues.
Over 440 companies are establishing disruptive businesses as part of the Seedcamp Nation, changing the way people live, engage, and shop. In addition to rapidly expanding companies like Ezra, THIS, and Synthesia, its portfolio also includes unicorns Revolut, Hopin, Sorare, Pleo, wefox, Grover, and UiPath that are publicly traded.
Through rapid access to intelligent money, a supportive community for life, and a worldwide network developed through more than a decade of supporting great talent, Seedcamp accelerates a founder’s idea and creates value.
Investments made by Seedcamp total 491 startups so far.
2. AWS Gründerfonds (Austria)
The aim of High-Tech Gründerfonds (HTGF) is to reactivate the dormant startup finance sector. The decision as to whether the HTGF should invest in a start-up was based on market criteria, and the initiative’s concentration was on high-tech start-ups with large growth potential.
The HTGF, as one of the best VC firms in Europe, is the best illustration of a productive public-private partnership to date. They support the constant growth of the startup ecosystem in Germany and across Europe with their resources, investors, and dedication.
Approximately 900 million euros are being managed by the HTGF’s three funds. From fund to fund, private companies now account for a larger percentage. 33 businesses are currently investing in HTGF III. They own more than 30% of the fund.
So far, HTGF has invested into more than 750 startups in Austria and beyond.
3. Global Founders Capital (Germany)
As one of the best VC firms in Europe, Global Founders Capital (GFC) is a German venture capital firm that invests in high-growth tech companies.
GFC is a venture fund that supports talented businesses and is focused toward the worldwide market. They support businesses from pre-seed through seed stage and for the duration of their existence.
They provide founders with online help from the very beginning through all stages of growth. On all continents, Global Founders Capital has supported entrepreneurs from series seed through IPO.
Global Founders Capital made approximately 864 investments in 2021 which means they are quite active and interestingly, they invest in startups globally.
4. Partech (France)
Technology venture capital business, Partech, makes investments in seed, venture, and growth phases. Partech, one of the most active tech investors in the world, was founded in San Francisco and Paris.
It offers funding, operational expertise, and strategic support to business owners across all stages of their lifecycle.
They make investments ranging from €200K to €75M in a variety of technologies and companies serving both consumers and corporations in all significant industries.
The 200+ firms in its portfolio are spread across 38 countries, and 16 of them—Alan, Jellysmack, ManoMano, Marama, People.ai, Rohlik, SellerX, Sorare, Toss, Wave, Xendit, and Zepz—are valued at more than $1 billion.
With a growing presence in Africa and Asia, the company pools resources and cash to support business owners in Europe and North America at every level.
5. Octopus Ventures (UK)
Octopus, as one of the best VC firms in Europe, is a multi-stage European venture financing firm with a focus on consumer, B2B, deep tech, health, and Fintech products.
They are intended for those with the motivation and ideas to transform the world. “You can construct a better tomorrow by investing in it,” is the motto of Octopus.
At every stage of their journey, from ideas on a page to IPO, Octopus Ventures supports founders. They invest more than £200 million annually in the five industries with the greatest potential for impact: health, fintech, deep tech, consumer, and business-to-business software.
Investment in Octopus Ventures is about more than just money. Giving time, effort, and focus while collaborating with the founders to increase their chances of success is what it means to be fully invested.
6. Mainport Innovation Fund II (Netherlands)
Schiphol International Airport, Royal Dutch KLM, TU Delft University, Dutch Railway (NS), and Port of Amsterdam created MIF II in 2015 along with NBI Investors, the fund manager.
MIF II focuses on innovation in the B2B and B2C markets for logistics, transportation, and aviation.
The logistics, transportation, and aviation sectors are the emphasis of MIF II. This covers, but is not limited to, the following topics: big data, connectedness, mobility, intermodal transportation, energy, and sustainable infrastructure and materials.
MIF II invests in cutting-edge businesses that are gaining traction and seeking capital, knowledge, and connections to hasten their expansion. MIF II seeks to acquire a sizable minority stake in the businesses it invests in. Initial ticket amounts range from 200.000 to 1,000,000 euros.
7. Portugal Ventures (Portugal)
Portugal Ventures is a Portuguese venture capital fund that focuses on investing in European start-ups.
In order to promote the international success of Portuguese businesses and aid them in reaching their competitiveness objectives at every stage of development, Portugal Ventures was established in 2012.
They make investments in tourism, pharmaceuticals & health tech, manufacturing & technology, and digital & technology. Pre-seed, seed, and series A startups are the ones they fund.
Investment strategy:
- Investment range from 50k to 1.5M depending on the stage and industry
- Co-investment with Portuguese and foreign partners is something they favor
- Rewards paid in tranches once each goal is accomplished
- In the company’s share capital, they prefer to be a minor shareholder
- They are represented on the board of directors of the corporation
8. ACTIVE Venture Partners (Spain and Sweden)
ACTIVE Venture Partners is a Spanish venture capital firm that invests in high-growth tech companies.
A global group, ACTIVE Venture Partners has locations and offices in Barcelona, Hamburg, and Stockholm. The company often participates in significant seed and series A financing. Their investments typically concentrate on businesses in Scandinavia, German-speaking nations, and Spain.
The proper reporting framework, including internal and external dashboards, was built up by their team. ACTIVE, as one of the best VC firms in Europe, chooses the key performance indicators (KPIs) that are most important to your company and then they test, monitor, and improve them over time.
It is essential that you expand alongside your business as it expands. ACTIVE provides a variety of top-notch forums where founders can advance and exchange knowledge. They have mentors and advisors who can help you through each level.
9. Emerald Technology Ventures (Switzerland)
Emerald Technology Ventures is a Swiss venture capital fund that is focused on investing in European start-ups.
In the fields of energy, water, cutting-edge materials, and industrial IT, Emerald is a well-known investment company on a global scale.
Since its founding in 2000, the business has managed three technology investment programs for outside parties, established three venture capital funds, and made more than 50 venture investments.
Emerald has so far managed more than $660 million in assets from offices in Zurich and Toronto. Emerald has indeed formed one of the best VC firms in Europe with investing in technology based new ventures.
10. Holtzbrinck Ventures (Germany)
A venture capital firm called HV Capital assists creators in growing their online businesses. It is a venture financing firm with offices in Munich and Berlin that aids entrepreneurs in growing their online businesses.
One of the most financially robust and best VC firms and growth investors in Europe, HV Capital, originally known as HV Holtzbrinck Ventures, has been investing in Internet and technology firms since 2000 through successive generations of funds.
Around 200 businesses, including Zalando, Delivery Hero, FlixMobility, and SumUp, have already received funding from HV Capital. The combined value of all HV Funds is €1.7 billion.
The business assists businesses with funding ranging from €500,000 to €50,000,000. As a result, HV Capital is one of the few venture capitalists in Europe who can provide funding for entrepreneurs during all stages of their growth.
Conclusion
When it comes to raising venture capital, the best VC firms in Europe will be those that have a proven history of success. A firm that has successfully funded hundreds of startups is the one you should approach first.
In this article, we have introduced the top VC firms broadly and did not focus on specific verticals. You can read this blog post to learn more how you should prepare your application successfully for such VC firms.
Lastly, once you approach these VCs, you should have meetings to see if they share your vision. VCs will be with your startup for several years and will sit in the board. So they have a voice when it comes to strategic decisions you take within the venture. If you share a vision and have a good relationship, decision making will be much easier.
