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State of European Mobility Startups 2023 Report Unveils Surprising Insights Amidst Global VC Downturn

In the face of a challenging global venture capital market in 2023, marked by restricted funding access and increased interest rates, the European mobility startup ecosystem emerges as a standout performer. Via ID and Dealroom.co’s latest report, “State of European Mobility Startups 2023,” delves into the intricate details of funding dynamics, consolidation trends, and the overall resilience exhibited by the industry.

Funding Landscape: Robust Despite Challenges

European mobility startups secured $9 billion in funding in 2023, marking a 26% decrease from the previous year. Despite this dip, the industry remains resilient, ranking third among funded industries in Europe. B2B startups dominated the funding landscape, experiencing an 85% share of investments, signifying a shift from B2C ventures. Corporate investors continued to play a crucial role, contributing $2.8 billion across 85 deals.

Venture Capital and M&A: Shifting Dynamics

While funding levels experienced a dip, M&A activities surged, particularly in the logistics sector, with 159 exits recorded compared to 127 in the previous year. The average valuation declined to $62 million, with over 50% of funding rounds occurring below $5 million. Notably, Europe narrowed the funding gap with the US, nearly matching levels for the first time, demonstrating superior resilience.

Key Findings: A Closer Look

  • Corporate investors in European mobility startups show resilience, accounting for almost as much funding as venture capital.
  • Series A investments reached €868 million in 2023, consistent with 2022 figures.
  • Electric mobility claimed a record 66% share in investments, up from 60% in 2022.
  • Only one unicorn, Verkor, was born in 2023, while 9 of the 22 unicorns created between 2019 and 2021 lost their status.
  • Consolidation trend with 159 exits identified in 2023, up from 129 in 2022.
  • The average valuation drops to €62 million, but the median valuation increases.
  • Europe outperforms the USA, increasing its overall financing share.

Country-wise Breakdown

  • The UK leads in amounts invested, followed by France, Sweden, Germany, and Norway.
  • France stands out as one of the few countries to increase funding levels compared to 2022.

Seize the Opportunity for Deeper Insights

The “State of European Mobility Startups 2023” report provides a comprehensive overview of funding trends, business models, and consolidation in the European mobility landscape. Navigate the dynamic world of mobility startups by accessing the full report here.

Key Questions Answered in the Report:

  • How does funding for European mobility startups in 2023 compare to investment trends in other industries and countries?
  • What were the most funded business models in 2023, and how do they compare to previous years?
  • Which segment witnessed the highest level of consolidation in 2023, and who were the most active acquirers in that sector?

Stay informed and gain a strategic edge in the evolving landscape of European mobility startups!