BELGIUM Trends and Developments Contributed by: Steven De Schrijver, Allegiance Law
Average funding per round has seen significant growth since 2018, with amounts tripling during seed and Series B stages and more than dou- bling during Series A. Despite a sharp drop in global post-pandemic funding, which affected Belgium more severely than Europe overall (-59% in Belgium versus -39% in Europe in 2022), the Belgian tech sector rebounded more quickly and showed strong recovery through 2024. Investment trends reveal a focus on software, which has received 52% of total funds in recent years, compared to 48% for hardware – a pro- portion that shows Belgium’s tech investments are slightly more skewed towards hardware than other parts of Europe. Moreover, the global uptick in AI investment has notably impacted Belgium, with more than 70% of capital in the first half of 2024 going to AI companies (com- pared to a much smaller share prior to 2022). Flanders, which accounts for about 60% of Belgium’s GDP, has received a roughly propor- tional 52% of tech start-up investments. Inter- estingly, Brussels (which contributes only 17% to the national GDP) has attracted a significant 31% of cumulative capital invested between 2018 and the first half of 2024, while Wallonia has received 17%. Belgium has produced four unicorns – team.blue, Collibra, Odoo, and Deliv- erect – thereby highlighting its growing presence in the global tech scene.
From 2018 to the first half of 2024, early-stage funding rounds made up approximately 77% of the capital raised by Belgian tech start-ups, in stark contrast to Europe’s average of 42% for the same period. Although the number of exits remains small, it has steadily increased, with 13 in 2018, 31 in 2022, 36 in 2023, and 22 in the first half of 2024. Foreign investors have consistently outpaced Belgian investors in participation, averaging 66% of total investment since 2020. This strong international interest complements a robust domestic venture capital landscape, as Belgian venture capital funds are projected to surpass EUR400 million in fundraising by the end of 2024. Notably, while only two VC funds were established in 2018, eight were launched in the first half of 2024 alone – suggesting a banner year for Belgian venture capital. A Syndicate One survey conducted in the sum- mer of 2024 (involving more than 130 Belgian tech start-up founders) highlighted the recruit- ment and retention of talent as the top chal- lenge, with around 25% of founders identifying it as a major concern – far outpacing “revenue growth and scaling”, which followed at 13%. The same survey showed that more than half of the respondents currently offer employee stock ownership plans (ESOPs), with another 13% planning to introduce such plans in the near future.
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