As the havoc wrought by the COVID-19 pandemic proliferates, the momentum that catapulted European venture activity to record levels in 2019 will abate this year, according to PitchBook research analysts in their latest note dedicated to the continental VC environment. Funding gaps will force GPs to pivot attention toward pre-existing investments; smaller and less-established investors may struggle to source LP commitments; and exits could likely be delayed. However, SaaS-based recurring revenue business models will prove even more vital in the current environment. The note details further ramifications across every other aspect of the venture market across the continent, from funding gaps to cash flow management by startups.
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