European VCs Fund Rocketship Startups, Challenging Funding Narrative

A recent Forbes report, citing a study by global early-stage venture capital firm Antler, challenges the prevailing perception of European venture capitalists (VCs) as risk-averse and reluctant to fund startups during their critical growth phase. The study highlights a significant trend of rapid growth and robust local backing for European startups founded in 2020 or later. Notably, fourteen of these companies have already achieved unicorn status, reaching a valuation of one billion dollars in an average of just two years – a phenomenon Antler terms 'rocketships.' Crucially, the Antler report found that two-thirds of these high-growth startups were primarily funded by European VCs. This finding contradicts the notion that promising European companies predominantly depend on global investors, indicating a notable shift in investor behavior. European investors appear to be demonstrating increased confidence in their domestic innovation economy, committing substantial capital and acting with greater speed. In an interview with Forbes, Antler partner Christoph Klink corroborated this trend, stating, "When you look at the rocketship companies, two-thirds of their investors are European. So there are clearly European investors that get it and are prepared to move fast." While this suggests a growing willingness among European VCs to support scaling companies, the report does not definitively indicate that their investment amounts are on par with those offered by global counterparts. Nevertheless, the findings underscore a developing European funding landscape increasingly capable of nurturing its most promising startups through rapid expansion. This evolution has the potential to mitigate the outflow of talent and economic value to other continents.