European Tech’s ‘Eye-Watering’ Valuations Raise Bubble Fear

European startups are raising more money than ever before, producing a class of tech companies with valuations comparable to peers in the U.S. and Asia. But after a record-breaking start to the year, even some of the industry’s biggest cheerleaders are starting to worry that the momentum isn’t sustainable.

Virtual events business Hopin more than doubled its valuation in four months, raising cash at $5.65 billion in March. The continent’s biggest startup, Klarna Bank AB, reached $45.6 billion in its latest funding round, more than four-times higher than last year. U.K. financial technology startup Revolut Ltd. is weighing a round that would raise new funds at a more-than $20 billion value, more than triple its $5.5 billion valuation in 2020, people familiar with the matter have said.