Investments in Dutch startups rose to record levels in Q1 2021: KPMG

Investment in Dutch startups has risen to record levels in the first three months of 2021, according to the latest report from KPMG.

Here are the key takeaways from the Venture Pulse, KPMG’s report. Check out.

€713M invested in Dutch companies

In the first quarter of 2021, nearly $860M (approx €713M) was invested in Dutch companies, which is almost 90 per cent more than the amount of $454M (approx €376M) in the last three months of 2020. 

Some of the notable investments were the capital injection of €40M in Lightyear, €30M in Crisp, and €24M in Felyx. 

€105M invested in startups globally

On the global front, the first quarter witnessed a record amount of $126.6B (approx €105M) investment in startups, which is almost 30 per cent more than the amount of $98.2B (approx €81.4B) in the last three months of 2020, says the report. 

The report also adds that the first quarter of this year saw a record nine capital injections of $1B (approx €829M) and more globally. 

Fintech attracts major VC investment in Europe

In Europe, interest in fintech continues to accelerate in Q1, 2021. In addition to Sweden-based Klarna, three other UK fintech companies – LendInvest (approx €316M), Checkout.com (approx €373M), and Rapyd (approx €249M), raised huge funding. 

“Interest in B2B was also high as corporates looked to leverage fintechs not only to digitise products and enhance their customer experience but also to improve their general operations,” says the report. 

VC investment in the UK 

The report says VC investment in the UK remained robust in Q1 21. On the other hand, the UK government is working on enhancing its competitiveness post Brexit, with several reviews released in Q1 21. To attract investment, the Hill Review recommended changes including, modifying listing practices to allow for dual-class shares.

VC investment in Germany

VC investment in Germany rose to a new high in Q1’21 as investors remained focused on late-stage deals and follow-on investments, the report. 

More companies are showing interest in considering IPO and SPAC transactions as well. Notably, Auto1 held a successful IPO, with its share prices rising 45 per cent at the opening. 

On top of that, the Cupertino tech giant announced plans to create a chip lab in Munich. The German government also quick-started its $10B (approx €8.3B) future fund – a new fund to help startups scale. 

VC markets in the Nordics region

The report says the VC market in the Nordics region continued to show incredible strength in Q1 21 as later-stage companies continued to grow and attract larger funding rounds. 

Some companies like Klarna (approx €830M), Wolt’s (approx €440M), Epidemic Sound (approx €373.3M) secured huge funding during Q1, 21. 

Also, the corporate investment in the Nordics increased dramatically, reaching $2.4B (approx €2B) in Q1’21, compared to $3.3B (approx €2.73B) during all of 2020.  

During the quarter, Denmark-based consumer review site Trustpilot also raised $655 million (approx €543M) in its successful IPO on the LSE.

“Here in the UK, B2B services is a fast-growing area of VC investment both for VC and CVC investors. We’re seeing more fintechs focusing on B2B services – offering everything from financial tools for SMEs to solutions focused on enhancing cash flow or managing accounting requirements. Given the number of local and global financial institutions looking to improve their legacy tech and infrastructure, I expect we will continue to see significant investments in this space as we go through 2021,” says Kevin Smith Head of KPMG Private Enterprise in EMA, Global Co-Leader — Emerging Giants, KPMG Private Enterprise, KPMG Partner, KPMG in the UK