European venture capital fundraising hit €6.4 billion ($7.3 billion) in 2016, up 16% from €5.5 billion a year earlier, said Invest Europe, the trade association representing Europe's private equity, venture capital and infrastructure sectors, in a report on Tuesday.
Some 73% of the capital came from investors in the largest European countries, with French investors responsible for more than half of the that capital. North American institutional investors invested 9.2% of this capital, compared to 10.5% the year before.
"Global investors are recognizing that European venture capital offers a rich A to Z of investment opportunities: trailblazing tech innovation born in cities from Amsterdam to Zurich," Nenad Marovac, Invest Europe's vice chairman and founder, said in a news release.
"Anyone who has ever played Angry Birds or searched for flights via Skyscanner is benefiting from Europe's highly talented entrepreneurs — not to mention the fintech and life sciences startups leading the way in their sectors. Backed by Europe's experienced VC fund managers, these companies can rival the best in the world for returns to investors," Mr. Marovac added in the release.
Invest Europe added in the report that the venture capital fund sizes increased with as many as 13 funds raising in excess of €100 million last year.
Total venture capital investment in Europe was up 2.3% last year, reaching €4.3 billion. Fund managers invested 44% of capital in information and communications technology companies. The second highest amount, 27%, went to biotechnology and health care.
