Startups in Greece 2020/2021 report: Progressing against all odds

Found.ation, in collaboration with EIT Digital (part of the European Institute of Innovation and Technology) published for the fourth consecutive year an extensive report, with the aim of recording funding opportunities and the profile of startups in Greece.

2020 is a particularly interesting year, during which the ecosystem showed signs of distinct maturity, achieving not just survival but substantial prosperity, despite the inevitable pressure from the effects of COVID-19.

As stated by the EIF (European Investment Fund): “The most important thing is that, in the midst of the global pandemic and earlier than expected, the first exits took place. These early successes and exits are vital. important for ensuring a well-functioning ecosystem: they attract professional talent, which in turn brings confidence and capital to the country “.

The report records all the investments that have been made within the framework of the EquiFund financing program and analyzes the profile of the companies that have been supported. Also, the lists of the most successful Greek startups are updated, both of those that have received the most funding in 2020 and overall, as well as those that have achieved the best acquisition agreements. For the third consecutive year, Found.ation partnered with Velocity.Partners VC, one of EquiFund funds, with the aim of analyzing and highlighting the characteristics of Greek startup companies that are in the early stages of their development (pre-seed and seed stages), to understand their needs, to identify the problems they face in seeking funding and to build their profile.

Some of the most important elements of the report:

• In 2020, the top 10 Greek startups raised 115 million euros in funding, while more than 150 million euros were invested in total in Greek startups.
• Approximately 34 million euros were invested in startups through the EquiFund program in 2020, bringing the total to 92 million (from 2017 to date). For every € 1 received by EquiFund VCs, start-ups have received an additional € 2.4 from other investors by 2020 (a total of € 108 million). This is an amount higher than any other year to date. It is worth noting that in the financing rounds there is a large percentage of foreign investors, both from Europe and Silicon Valley.
• Indicative of a mature ecosystem is also the fact that compared to 2019, almost the same amount was invested under EquiFund, but in much fewer companies (30 vs. 48 in 2019), while the amounts per round of financing in each company. Respectively, increased compared to previous years are the amounts of funding that Greek startups seek from investors.
• Although the effects of COVID-19 on Greek startups were inevitable, it should be noted that not all sectors were affected to the same degree. As expected, the biggest hit was the hospitality industry, however there were markets that saw in the situation even opportunities. A large number of startups that have received funding have been able to increase their recruitment, even in the midst of this difficult year.
• Venture capital companies are not the only ones focusing on Greece. Technology giants such as Microsoft are investing in the local ecosystem not only by setting up R&D facilities or data centers, but also by acquiring Greek companies and talent.
• Records were also set in terms of exits: in 2020 there was the largest acquisition of a Greek startup (Instashop for € 307 million), another exit exceeding € 100 million (acquisition of Softomotive by Microsoft ), but also the first exits of companies funded through EquiFund (Pushme, Instashop, Think Silicon, GuestFlip).

Despite the difficulties brought by the pandemic, a poll conducted as part of the report shows that the majority of Greek startuppers remain optimistic about 2021, while investors feel the same. Dimitris Kalavros-Gousiou, co-founder of Found.ation and partner at Velocity.Partners states: “There is a lot of optimism for the coming years in the local ecosystem. “We have a unique opportunity to create a thriving ecosystem that will create value in the long run – let ‘s take advantage of it.” The statements of representatives of funds and angel investors, which are also hosted in the report, are on the same wavelength.

You can read the full report (in English) by clicking the link.