Annual Funding Report: Venture Investing in European B2B Software

By Diederik Ingen Housz and Diego Le Grand

2021 has been a crazy year for (venture) investors. So far, 2022 doesn’t appear to be much different.

As new dust is quickly sprawling up before the old dust has settled, we decided to take a final look back at the funding activity (mania?) for European B2B Software Ventures throughout 2021. From the largest deals to the most successful geographies, we’ve got you covered.

Here are some of our findings:

Over the course of last year, European B2B Software Companies: …

  • Were funded across 1697 deals

  • Raised € 15.4 Million per round on average

  • Attracted € 26 Billion in total funding

We also found strong ‘winner takes most’ dynamics regarding capital allocation as 7 out of Europe’s 44 countries attracted 81% (!) of the 26 Billion of capital raised. Furthermore, the 10 largest rounds - which account for only 0.01% of deal volume - cumulatively represented ~21% of total deal value. Finally, the 120 largest rounds raised in 2021 - whilst only accounting for 0.07% of deal volume - accounted for more than 62% of total deal value.

The ‘Top 5’ largest rounds* in 2021 were raised by:

1. Messagebird

€ 909 M

2. Celonis

​€ 909 M

3. Mollie

€ 727 M

4. wefox

€ 505 M

5. MoonPay

€ 505 M

*Data on Dollar-Rounds have been converted to Euros at a 1.10 EUR/USD rate.

Finally, the countries that attracted the most capital were:

1. The United Kingdom € 7.40 B 2. Germany € 5.32 B 3. France € 3.27 B 4. The Netherlands € 2.95 B 5. Spain € 0.90 B

Reflecting on the past year has greatly enhanced our understanding of what happened in Venture Capital Markets. So much so in fact, that we have decided to publish a monthly version of our ‘B2B Software Funding Update’ starting in February. We will discuss all the latest developments driving and shaping Private Funding for Europe’s B2B Software Ventures throughout these reports.

See the full report below: