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Q1 2023
European Venture Report
April 17, 2023
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European VC ecosystem adapts to a challenging market
Capital efficiency and profitability were driving Europe’s venture market as both deal count and value significantly declined in Q1. With inflation and monetary policy tightening their grip, startups are finding it harder to grow and capital is becoming harder to come by.
In our Q1 2023 European Venture Report, we break down how VCs and startups are navigating the new normal and the opportunities that have emerged with the downturn.
Highlights include:
Table of contents
European VC ecosystem adapts to a challenging market
Capital efficiency and profitability were driving Europe’s venture market as both deal count and value significantly declined in Q1. With inflation and monetary policy tightening their grip, startups are finding it harder to grow and capital is becoming harder to come by.
In our Q1 2023 European Venture Report, we break down how VCs and startups are navigating the new normal and the opportunities that have emerged with the downturn.
Highlights include:
- Early-stage rounds accounted for 34.5% of overall deal value with several substantial rounds closing in Q1.
- Venture debt is likely to become more prevalent in larger rounds as investors seek to mitigate risk.
- Fundraising sees a substantial decline after years of stability.
- M&A leads the way for VC-backed exits with four out of five of the largest deals in Q1.
Table of contents
| Introduction | 3 |
| Deals | 4 |
| VC deals by region and sector | 7 |
| Nontraditional investors | 8 |
| Spotlight: Nordics | 10 |
| Exits | 12 |
| Fundraising | 15 |