European tech is thriving! In spite of COVID uncertainty, Europe’s tech start-up scene was breaking barriers and records every step of the way in 2021. With $113bn raised, 247 $100m+ rounds, and 78 new unicorns, to say it was an impressive year is a huge understatement, as funding into European start-ups grew quicker than both the USA and Asia.
As someone who exclusively works digital roles in the German market, the market was already thriving, but its adaptability and resilience to COVID-19 has meant that it has grown even further over the last 12 months, and it’s great to see that this is a common theme across the whole of Europe.
In 2020 Europe receive $48.4bn in Venture Capital (VC) funding. In 2021 this leapt to a huge $113.7bn, making Germany the second best-funded country in Europe, taking $19.1bn for itself. In terms of sectors, Fintech in 2021 raised more than the whole of Europe did in any given year up until 2018, with 70 raises totalling $100m+, 29 of which were in excess of $250m. It was also a strong year for the SaaS industry, which had 39 $100m+ rounds.
3 of the top 10 raises in 2021 belonged to German companies (N26, Gorillas, and Celonis) drawing with Netherlands who also had 3 (CitizenM, Mollie, and MessageBird). The UK had two start-ups featured in the top 10 (Cinch and Revolut), the same as Sweden (Klarna and Northvolt).
Some of these companies had ground-breaking funding rounds, with Gorillas raising $1bn and N26 just behind at $0.9bn, and Stockholm’s Northvolt bagged a huge $2.8bn round — Europe’s biggest ever.
Notably also, grocery delivery start-up Flink raised a $240m Series A in June, which is the second largest Series A funding round of 2021 in Europe. They then went on to secure a further $750m in Series B!
With so much money flying about the tech start-up scene across Europe, it’s no wonder that there are tech jobs everywhere but no talent to fill those jobs. Many companies are reporting that it’s harder than ever to hire exceptional tech talent, and as a result of the increasing competition for talent, data company AdvancedHR, salaries for some start-up employees have jumped nearly 60% in the past three years!
From my own experience working the German market, and supported by data, FinTech and eCommerce industries were within the three top sectors advertising for roles. In the German market alone, demand for top tech and digital talent for FinTech and eCommerce businesses increased dramatically, and competition continues to be high.
Competition for top tech talent across Germany, like Europe, continues to intensify, making it more difficult to attract, hire, and retain the top talent. As market movement accelerates, this competition will continue to increase, leaving many businesses struggling to hire the talent they need to drive and deliver business critical projects.
For support pipelining, budgeting, and recruiting for key roles in your Digital Marketing or Product function for 2022, please get in touch to find out more about how I can support you this year.
From data-driven salary surveys to advice on employer branding strategy and access to Germany’s leading network of tech and digital professionals, I support businesses attract, hire, and retain top talent. Email me today directly for confidential advice or for more information.
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