Venture capital investment in European companies remains stable but somewhat subdued, with startup funding totaling $11.8 billion in the first quarter of 2024. This is slightly higher than the previous quarter but lower than the same period a year earlier. The U.K. also saw a similar trend with investment declining slightly from the previous quarter. This indicates that while there is no crisis, the funding landscape remains challenging for many businesses.
Two European companies that recently completed successful funding rounds are Kittl, a Berlin-based business, and Pigment, a Paris-based business planning platform. Kittl provides browser-based graphics tools for designers to create professional quality collateral, and recently raised $36 million in a Series B round led by IVP. Pigment, founded in 2019, offers a planning platform for forward-thinking businesses and recently completed a $145 million Series D round led by ICONIQ Growth and SandbergBethnal Venture Partners.
Kittl’s CEO, Nicolas Heymann, highlights the importance of adapting to a changing economic climate during the fundraising journey. The company initially focused on growing its user base before shifting towards monetization to attract investors. Following this strategy, Kittl was able to show investors that customers were willing to pay for its product, leading to successful funding rounds. Pigment, on the other hand, emphasizes innovation as a key driver of its growth, with a focus on expanding its product to enable various use cases within organizations.
In today’s market, demonstrating that your product is delivering value to clients and generating revenue is crucial for securing VC funding. Companies like Kittl and Pigment have successfully navigated this process by adjusting their strategies to meet changing investor expectations. As the economy improves, the criteria for VC funding may shift once again, emphasizing the importance of staying informed about investor preferences and market trends.
Overall, the European VC investment landscape remains stable, with businesses able to secure funding by showing that their products are meeting the needs of clients and generating revenue. Despite challenges posed by the current economic climate, companies like Kittl and Pigment have been able to successfully raise capital by focusing on innovation and adapting to changing market conditions. As VC priorities continue to evolve, it is essential for businesses to stay informed and aligned with investor expectations to secure funding in a competitive environment.
