The European startup ecosystem has seen exponential growth over the last decade, with a surge in innovative businesses disrupting traditional industries. From fintech to e-commerce, startups in the EU have thrived despite various economic challenges. In this article, we will explore the most successful startups each year from 2015 to 2024, spotlighting companies that achieved groundbreaking milestones.

Methodology for Selection

To determine the most successful startups, we considered several factors:

  • Funding rounds: How much capital a company raised.
  • Valuation: The market worth of the startup at its peak during a given year.
  • Market impact: The influence and innovation the company introduced to its industry.
  • Geographic focus: Emphasis on companies headquartered in the European Union.

2015: Spotify

Industry: Music Streaming
Spotify revolutionized music consumption by allowing users to stream songs for free or via subscription. The company expanded rapidly, becoming synonymous with digital music. In 2015, Spotify’s valuation soared as it raised $526 million in a funding round, bringing its value to around $8.5 billion.

Notable Milestone: Spotify continued to dominate the global streaming industry, paving the way for its IPO in 2018.

2016: Revolut

Industry: Fintech
Revolut transformed banking by providing users with a mobile-first platform for managing international transactions, cryptocurrency, and spending. In 2016, it raised $66 million, earning its reputation as a fintech disruptor.

Notable Milestone: By 2016, Revolut became known for its innovative currency exchange model, providing customers with real-time exchange rates and commission-free global spending.

2017: Klarna

Industry: Fintech
Sweden-based Klarna emerged as a leader in “buy now, pay later” services, allowing consumers to delay payments or spread them over time. In 2017, Klarna’s valuation reached $5.5 billion as it expanded its services across Europe.

Notable Milestone: Klarna became a key player in reshaping e-commerce by offering flexible payment options that catered to the increasing demands of digital shoppers.

2018: Delivery Hero

Industry: Food Delivery
Berlin-based Delivery Hero became a global leader in online food delivery. By 2018, its market valuation exceeded $10 billion, as it expanded into over 40 countries and went public in 2017.

Notable Milestone: Delivery Hero continued its aggressive expansion, acquiring several competitors across Asia, Europe, and the Middle East.

2019: Glovo

Industry: On-Demand Delivery
Spanish startup Glovo became one of the fastest-growing delivery platforms, offering more than just food delivery. Glovo’s diverse delivery options, ranging from groceries to pharmaceuticals, made it a household name across Europe.

Notable Milestone: In 2019, Glovo raised over $150 million, bringing its valuation to $1 billion, entering the unicorn club.

2020: Zalando

Industry: E-commerce
Zalando, a Berlin-based online fashion retailer, saw its popularity and revenues soar during the pandemic. Its unique blend of fashion, beauty, and lifestyle products made it a leading e-commerce platform in Europe.

Notable Milestone: Valued at approximately $27 billion by the end of 2020, Zalando benefited from a significant shift toward online shopping during the pandemic.

2021: Bolt

Industry: Ride-Hailing and Micro-Mobility
Estonia’s Bolt (formerly Taxify) expanded its services from ride-hailing to include e-scooters and food delivery. In 2021, Bolt raised $600 million, reaching a valuation of $4 billion, positioning itself as a key competitor to Uber in Europe.

Notable Milestone: Bolt’s expansion into micro-mobility helped reshape urban transportation, offering greener alternatives to traditional vehicles.

2022: Checkout.com

Industry: Fintech
London-based Checkout.com emerged as a leading global payment solutions provider, offering services to major tech companies, including Netflix and Facebook. In 2022, it raised $1 billion in a Series D round, with a valuation of $40 billion.

Notable Milestone: Checkout.com’s rapid growth and technological advancements made it one of the most valuable fintech companies globally.

2023: Pleo

Industry: Fintech
Denmark-based Pleo, a smart company card and expense management platform, became popular among businesses seeking to streamline employee spending. In 2023, it raised significant funds and achieved a valuation of $4.7 billion.

Notable Milestone: Pleo revolutionized expense management for European SMEs, offering a user-friendly platform with real-time spending insights.

2024 (Predicted): Personio

Industry: HR Tech
Personio, based in Germany, provides an all-in-one HR software solution for small and medium-sized businesses. With rapid growth in the HR tech space, Personio is expected to continue its upward trajectory in 2024.

Notable Milestone: By 2024, Personio is expected to secure a significant market share in the HR software industry, with predictions of a valuation surpassing $6 billion.

The Role of Crowdfunding Platforms in EU Startups

Crowdfunding platforms like Seedmatch, Companisto, and Crowdcube have played a pivotal role in nurturing the European startup ecosystem. These platforms allow startups to raise early-stage capital from individual investors, democratizing the investment process and providing access to funding for high-potential businesses. Startups like Pleo and Glovo benefited from early-stage crowdfunding, laying the foundation for their future success.

Conclusion

From music streaming giants like Spotify to fintech disruptors like Klarna and Revolut, the EU has consistently produced successful startups that are shaping industries globally. The role of crowdfunding platforms and investor confidence has been critical in nurturing these companies. As the European startup ecosystem continues to grow, we can expect even more innovation and groundbreaking businesses to emerge.

For more insights into the startup ecosystem and investment opportunities, visit Investing in Startups.

FAQ: Most Successful EU Startups

EU startups often operate in a more regulated environment than their counterparts in the US or Asia, especially regarding data protection and privacy. Regulations like GDPR have shaped how these companies approach data-driven services. Additionally, EU startups tend to adopt a more regional approach to growth, expanding within the continent before moving internationally due to the logistical and regulatory differences across EU countries. In contrast, US startups generally prioritize rapid, nationwide scaling, while Asian startups often scale quickly in large, fast-growing markets. EU startups are also more likely to incorporate sustainability and social responsibility, responding to consumer demand and regulatory pressures in the region.

Several industries are particularly fertile for EU startups, including fintech, health tech, green energy, mobility, and artificial intelligence. The fintech sector is strong in the EU due to robust digital infrastructure and regulatory support, while health tech has seen rapid growth due to increased focus on digital healthcare solutions. Additionally, environmental tech or green startups are thriving, driven by the EU’s commitment to sustainability and funding for clean technologies. The mobility sector is also prominent, with startups working on electric vehicles, ridesharing, and micro-mobility solutions, particularly in cities with high urbanization.

Fintech is one of the EU's most successful startup sectors, partly due to the region's progressive regulatory environment. Initiatives like PSD2 (Payment Services Directive 2) have created a more open and competitive banking environment, encouraging innovation in digital payments, peer-to-peer lending, and financial data sharing. Countries like the UK, Germany, and the Baltic states have emerged as fintech hubs, with strong ecosystems and access to venture capital. Additionally, the EU's commitment to fostering cross-border digital solutions has enabled fintech startups to scale more easily within the EU single market.

Brexit introduced uncertainty for many EU startups, especially those with ties to the UK, which has traditionally been a tech hub in Europe. In response, some startups have chosen to establish additional offices or headquarters in other EU countries to retain access to the single market. Others have increased their focus on compliance with both UK and EU regulations to avoid disruptions. For sectors like fintech, where the UK has been a major player, many companies are diversifying their regulatory approvals and partnerships to ensure smooth operations in both markets post-Brexit.

Funding is a critical factor in the success of EU startups, and the availability of capital has been improving significantly in recent years. The EU benefits from a robust network of venture capital firms, angel investors, and government-backed funds. EU programs like Horizon Europe and the European Investment Fund (EIF) have also been instrumental in providing early-stage and growth-stage funding for startups. While access to funding is still not as high as in the US, the EU’s focus on sustainable and tech-driven sectors has led to increased investments in startups that align with long-term goals like sustainability and innovation.

Several EU startups have achieved significant success in recent years. Examples include Klarna (Sweden), a leading fintech company specializing in buy-now-pay-later services; Revolut (UK), a digital banking and payments platform; N26 (Germany), a mobile bank; UiPath (Romania), which focuses on robotic process automation; and Bolt (Estonia), a mobility and ridesharing service. These companies have scaled rapidly, attracted substantial investment, and in some cases, achieved unicorn status, underscoring the EU’s capacity to produce globally competitive startups.

The EU has implemented a range of initiatives aimed at supporting startup ecosystems. Programs like Horizon Europe provide substantial funding for research and innovation, benefiting tech-focused startups. The European Innovation Council (EIC) also offers grants and investments to high-potential startups across sectors. Additionally, the EU has launched digital innovation hubs and cross-border initiatives to help startups scale beyond their home countries. Furthermore, initiatives such as the Startup Europe program focus on connecting startups with investors, mentors, and resources across the EU.

Scaling internationally can be challenging for EU startups due to the diverse legal, regulatory, and cultural landscapes across countries. Despite the single market, differences in regulations—particularly in finance, data protection, and employment law—can complicate cross-border expansion. Startups often need to tailor their marketing, product, and customer support strategies to suit local tastes and expectations. Language barriers and differing consumer behaviors also require companies to adapt their strategies carefully. However, successful startups often overcome these challenges by localizing their services and building regional partnerships.

The future of EU startups appears promising, driven by continued investment in technology, innovation, and sustainability. With a strong emphasis on green initiatives and digital transformation, the EU is likely to see growth in sectors like renewable energy, AI, health tech, and advanced manufacturing. The EU’s push for a unified digital market and supportive policies for startups will continue to foster a healthy ecosystem. Additionally, as the EU seeks to strengthen its technological sovereignty, we may see increased funding and support for sectors like semiconductor manufacturing, cybersecurity, and AI, positioning EU startups as leaders in these strategic areas.