For the first time in a decade, venture capital deals in Europe did not set a new annual record.

    Here is an overview of five key trends in our European Business Annual Report 2022 that illustrate how transactions, outings and fundraising have gone over the past year.

    European VC fell short of the €100 billion (around $109 billion) mark set last year with €91.6 billion invested in around 12,383 deals. Nevertheless, 2022 was still the second highest year on record by a fair margin despite the economic difficulties during the year.

    As in previous years, the 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 ventures, such as Celonis’ $2 billion Series D, have helped boost the overall deal value, but such funding rounds are likely to be more challenging to be obtained in 2023.

    Non-traditional investors continued to inject capital into European venture capital operations, although at a slower pace than the previous year. Private equity firms, hedge funds and pension funds participated more in larger deals. Some 77.3% of the overall value of venture capital deals with the participation of non-traditional investors went to funding rounds of more than €25 million.

    Venture capital-backed European exits reached their third-highest total by value and second-highest number of deals in 2022. However, much of that took place in the first half of the year, when deteriorating market conditions squeezed valuations. With poor performance of tech companies in public markets making the prospect of IPOs much less attractive, corporate acquisitions have dominated the exit landscape.

    Europe VC fundraising had a record year thanks to increased vehicle sizes. Larger funds are tied to more experienced managers, which has allowed companies with strong track records to secure commitments from new and existing LPs.

    Read more: European Business Annual Report 2022

    Featured image by Markus Pfaff/Shutterstock

    Source link

    Leave A Reply