Q1 European venture capital trends in five charts
Despite interest rate hikes, a surge in the cost of living and geopolitical uncertainty stemming from the war in Ukraine, investment levels remained elevated in the first three months of the year. But as inflationary pressures continue to grow and the risk of an economic downturn heightens, the rest of the year could prove more challenging.
Here’s a look at five key trends from our Q1 2022 European Venture Report that visualize the quarter’s defining moments.
European VC-backed startups raised €27.5 billion across 2,228 deals in Q1, making it the second-biggest quarter on record in terms of capital invested.
If investments maintain their current pace, annual capital raised will surpass the €100 billion mark for only the second time in the past decade.
Late-stage investments reached €19.7 billion in the first three months of the year, equivalent to over 71% of the total amount of capital invested. In terms of deal count, late-stage transactions accounted for the majority, further demonstrating investors’ confidence in Europe’s maturing ecosystem.
The UK & Ireland accounted for more than 30% of the total VC invested in Europe. The France and Benelux region performed strongly with €6.3 billion invested, only just falling short of its quarterly best in Q2 2021. Europe’s third largest market, the DACH region, saw €4.8 billion invested.
Central and Eastern Europe accounted for less than 5% of Q1’s total capital invested, and the ongoing political turmoil with Russia could hinder long-term growth, particularly when it comes to foreign investors.
Despite a record year in 2021, exit value plummeted in Q1 amid a widespread tech public equity sell-off and signs of an economic downturn.
Most of Q1’s VC-backed exits were acquisitions, with 144 deals worth €5 billion. Only 16 public listings took place in Q1 for a total of €1.9 billion in value.
European VC fundraising activity remained steady, with €7.4 billion raised across larger-sized funds.
The number of European VC vehicles fell drastically. If new fund creation remains at these levels for the rest of the year, it could result in the lowest count since 2013.
Featured image via twomeows/Getty Images
Credit: Source link
Comments are closed.