When taking a closer look at the companies that are being funded, it’s impossible to ignore the impact of the global pandemic. It has been less than a year, and it has already transformed how we live and work.
Not surprisingly, e-commerce, food delivery, tele-health, cyber-security, edtech, fintech and other digital solutions were high on the list for potential funding. Interest in gaming has also increased and will likely to continue as people spend more time at home.
Similarly, fintech and digital solutions that are needed to support an expanding remote workforce, including new cloud-based services, have become essential, as well as edtech platforms and support services that suddenly became critically important when classrooms began to move from schools to homes.
Health and biotechnology companies were of notable interest, such as CureVac, a clinical-stage biopharmaceutical company that is developing a new class of transformative medicines, including a potential COVID-19 vaccine, and was successful in raising US$632 million.
Fintech funding rose in the ranks. The UK digital bank Revolut attracted US$580 million with the cloud-based banking platform, Thought Machine, raising US$125 million, and Swedish digital bank Klarna raising a massive US$650 million.
In looking ahead, I believe that VC investment in Europe will continue to adjust to the impact of COVID-19 and how well the world copes with a second wave. Regardless, I expect there will be increasing interest in social media platforms to further facilitate collaboration requirements and in robotics where human interaction may no longer be viable.