The latest Thoroughbreds 100 list by Amsterdam-based Dealroom highlights significant revenue growth by select tech companies in the EMEA region. By focusing on entities with annual earnings exceeding $100 million, the list offers insights into the shifting priorities of investors, who are putting more emphasis on tangible results rather than just high valuations. The financial performance of these companies underscores a trend where many firms are opting to remain private for longer durations, concentrating more on output augmentation rather than early public offerings.
In recent years, Dealroom’s data has shown a rise in companies producing substantial revenue within the EMEA region, yet they have historically stayed in the shadows compared to their American counterparts. The Thoroughbreds 100 not only emphasizes these shifts but also illustrates continued growth in this area over time. For the listed companies, maintaining a stable revenue stream seems pivotal. With fintech leading as the sector with the most companies on the list, the figures underscore both consistent sectorial confidence and adaptability in navigating regulatory challenges.
What Makes Fintech Dominate the List?
Thirty fintech companies, including Revolut and Wise, secure a spot, showcasing their robust customer acquisition strategies and job creation initiatives. Enterprise Software, featuring firms like Mistral AI, isn’t far behind, arranged in a burgeoning tech ecosystem with promising future outlooks. This sector allocation reflects an underlying economic shift where sectors focusing on digitalization and technology adoption get a firm foothold in shaping EMEA’s tech identity.
How Does Phoenix Court Stand Out in Venture Capital?
Phoenix Court emerges as a prominent player in supporting these high-revenue firms from early to growth stages, ranking top among EMEA investors. Their strategic backing of companies through all phases, especially through LocalGlobe and Latitude funds, amplifies their influence in flipping potential startups into powerhouse entities.
“Europe is no longer merely emerging; it is a demonstrable engine room for national, regional, and global champions.”
says Yoram Wijngaarde, showcasing the aspirations of these European firms gaining recognition and capability globally.
The UK leads by housing the most Thoroughbreds, closely followed by Germany. Though revenue and job numbers reflect positive implications for regional economies, the presence of a funding gap of $57 billion compared to the Bay Area indicates room for growth opportunities.
“For over a decade, venture capital has been gripped by unicorns. But the real test of a company is not valuation, but fundamentals. The definition of success has changed.”
states Saul Klein, underscoring the evolving metrics of success within the current venture capital environment.
Looking ahead, while many EMEA startups are making significant strides, they need continued support and increased investment to bridge the scale-up funding gap. This funding disparity could be detrimental in spotting high-potential companies deserving of larger investment commitments. Institutional investors and asset allocators have the opportunity to address this gap by exploring untapped EMEA startup potentials.
EMEA, spearheaded by “New Palo Alto” cities like London and Amsterdam, continues to trail behind the Bay Area in funding for scale-ups. Despite these challenges, about 2,000 EMEA firms now earn revenues exceeding $25 million, highlighting the growing pool of lucrative investment prospects.
