Valuations for European and Israeli startups hit record highs in 2021 due to more competition for deals and growing round sizes.
VCs are increasingly willing to pay more for promising startups, especially in sectors that performed well during the pandemic, and factors like the increasing presence of nontraditional investors have brought additional capital to the ecosystem. Pitchbook's 2021 Annual European VC Valuations report showcases some of the key trends that shaped valuations last year.