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VC Valuations

Expectations exceeded: European VC valuations in 5 charts

Five charts from our 2023 Annual European VC Valuations Report showcase movements in VC valuations.

European venture capital valuations remained largely unaffected by the downturn in VC dealmaking last year, with median pre-money valuations increasing year-over-year across almost all stages.

Here are five charts from our 2023 Annual European VC Valuations Report that show how venture valuations moved over the last year.

Seed was one of the only stages—alongside venture growth—to see a decline in its median pre-money valuation in 2023, down 9.1% YoY.

As valuations began to come down two years ago, the seed stage was insulated due to its distance from the public markets. Fewer corrections in 2022 could account for the recent decline in the median seed price tag.

The median value for late-stage deals grew the most in 2023 compared to other stages, up 13.3% YoY.

Outsize deals including French battery developer Verkor‘s €850 million Series C and grocery startup Getir’s $500 million round contributed to the increase.

The proportion of deals that were down rounds reached 21.3% in 2023, its highest level in almost a decade.

Nearly a third of down rounds took place in the UK and Ireland despite the region seeing increases in median valuations across almost all stages.

Deal activity among European unicorns fell significantly in 2023, with deal value down 77.5% YoY.

A lack of investor appetite for continued bets on highly valued but unprofitable companies caused dealmaking to slow considerably. The retreat of tourist investors in 2022 and 2023 meant there were fewer firms in the market for venture-growth deals.

The median exit valuation fell 28.8% from 2022 to stand at €23 million. Weak public listing activity was the primary cause for the decrease—the median public listing valuation declined 60.3% YoY.

Acquisitions, which were by far the most popular exit route in 2023, fell to a lesser extent—25.2% compared to 2022.

Featured image by Eoneren/Getty Images

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