5 charts showcasing European VC trends in 2022

On Jan 25, 2023

For the first time in a decade, venture capital dealmaking in Europe didn’t register another annual record.

Here’s a look at five key trends from our 2022 Annual European Venture Report that illustrate how deals, exits and fundraising fared last year.

European VC failed to cross the €100 billion (about $109 billion) mark set last year with €91.6 billion invested across an estimated 12,383 deals. Nevertheless, 2022 was still the second-highest year on record by a fair margin despite economic challenges over the course of the year.

As with previous years, late-stage accounted for the largest share of capital invested in Europe in 2022 with just over 47%. Substantial multimillion-euro rounds for late-stage companies, such as Celonis’ $2 billion Series D, helped increase the overall deal value, but such funding rounds will likely be harder to come by in 2023.

Nontraditional investors continued to pump capital into European VC deals, albeit at a slower pace than the previous year. PE firms, hedge funds and pension funds participated more in larger deals. Some 77.3% of overall VC deal value with nontraditional investor participation went to rounds over €25 million.

European VC-backed exits reached their third-highest total in value and second-highest deal count in 2022. However, much of that took place in the first half of the year, as worsening market conditions compressed valuations. With poor performance from tech companies in the public markets making the prospect of IPOs much less attractive, corporate acquisitions dominated the exit landscape.

Europe VC fundraising had a record year thanks to growing vehicle sizes. Larger funds are linked to more experienced managers, which allowed firms with robust track records to secure commitments from new and existing LPs.