{"id":570770,"date":"2023-04-18T18:59:31","date_gmt":"2023-04-18T15:59:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/european-vc-fundraising-on-pace-for-lowest-total-since-2015\/"},"modified":"2023-04-18T18:59:31","modified_gmt":"2023-04-18T15:59:31","slug":"european-vc-fundraising-on-pace-for-lowest-total-since-2015","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/european-vc-fundraising-on-pace-for-lowest-total-since-2015\/","title":{"rendered":"#European VC fundraising on pace for lowest total since 2015"},"content":{"rendered":"
\n It\u2019s been a tough start to the year for tech investments. According to a new report, European VC fundraising is on pace for its lowest annual total since 2015.<\/p>\n

Research by PitchBook<\/a>, a financial data firm, found that European VC funds raised over \u20ac20bn in each of the past four years \u2014 but only \u20ac3.4bn in Q1 2023.<\/span> Total VC deal value fell 32% quarter-over-quarter (QoQ) to \u20ac11.8bn. Deal count, meanwhile, dropped 19%.<\/p>\n

Pitchbook called the quarter \u201cthe first substantial decline\u201d from the pace set in the past four years.<\/p>\n

\u201cThe VC ecosystem could finally be displaying the effects of the challenging fundraising conditions,\u201d the study authors wrote. \u201cCapital investment into startups has slowed, and if muted exits markets persist, returns will be stifled and long-term capital commitments could be harmed.\u201d<\/p>\n

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The analysts found that exit activity had also plummeted. Amid adverse macroeconomic conditions and weaker valuations, substantial VC exits effectively ceased in Q1. Pitchbook expects the activity to remain quiet for the next few quarters.<\/p>\n

In Q1, the preferred route to exit was via mergers and acquisitions (M&A). Four out of the five largest exits in the quarter were through M&A. Such exits tend to be smaller, but they offer increased security and synergies \u2014 which can be crucial for startups facing economic uncertainty.<\/p>\n

Public listings, meanwhile, have lost app<\/a>eal due to the dangers of choppy markets. According to Pitchbook, they\u2019re unlikely to pick up until inflation cools, interest rate hikes cease, and business confidence re-emerges.<\/p>\n

\"In
<\/a>In Q1 2023, European VC activity generated only \u20ac1.6 billion in exit value \u2014 a 69.6% QoQ decline.<\/figcaption>