Newly released Affinity Relationship Intelligence Report analyzes unicorns in Europe and the UK and data from their platform.
SAN FRANCISCO—June 16, 2022—Affinity—the relationship intelligence platform for dealmakers—today launched The Relationship Intelligence Benchmark Report: Unicorn Edition, which shares industry trends and analyzes over 390 unicorns in Europe and the United Kingdom with a deep dive into relationship intelligence and deal flows of the firms that invest in them.
Integrated data from the Affinity and Dealroom.co’s intelligence platforms found Europe has a unicorn growth rate more than twice that of the US and is home to 65 ‘unicorn cities’. These unicorn cities consist of London, Berlin, Paris, Stockholm, and Amsterdam, with more than half of all European unicorns located in the UK and Germany. Recognizing the growth internationally, U.S. investors have flocked to join and now account for 35% of all funding in Europe. This flood of investment has also increased unicorn valuations which are up by 305% in the last five years.
“The past decade has seen an exponential increase in the volume and diversity of new capital investing in startups - and is now entering turbulent economic times,” said Ray Zhou, co-CEO and co-founder at Affinity. “Our report highlights how Europe has adapted and grown, despite the effects of the pandemic, and shows how relationship intelligence plays a role in these major industry trends.”
As expected, many firms experienced a period of ‘bounce back’ from 2020. In 2021, European unicorns raised over $45B, twice the amount raised in 2020. However, these unicorns only account for 14% of new unicorns globally. This means the competition among VC’s is significant as they try to time the right investment. Index Ventures is a single venture responsible for backing 10 European decacorns by itself. The combination of high valuations and less late-stage funding rounds requires VC’s to capitalize on their networks, warm introductions, and outreach. But as these firms and startups face uncertain economic conditions, it is important to understand the drivers for the previous success and how investors identify the next generation of high-growth startups in Europe.
Other key takeaways from the report include:
Read the full report here and then watch Affinity’s webinar “European Unicorn Trends: How to Make Unicorn Hunting More Predictable”, which brings industry experts together to discuss the trends impacting dealmakers in this report as well as the role relationship intelligence plays in the evolving market landscape.
Affinity is a relationship intelligence platform that empowers dealmakers in relationship-driven industries to find, manage and close more deals. With the most automated relationship intelligence insights and technology, Affinity enables leaders to drive deals, free themselves from data drudgery and ensure their teams can take action with confidence, knowing the context and history of every relationship. The Affinity platform, including Affinity CRM, is used by over 2,000 relationship-driven organizations globally. Founded in 2014, Affinity is headquartered in San Francisco and backed by leading investors including Menlo Ventures, Advance Venture Partners, 8VC and MassMutual Ventures.