Following a bumper 2021 that was full of IPOs and mega funding rounds, some of the most valuable start-ups in Europe are now laying off significant numbers of staff and drastically scaling back their expansion plans.
Chinese investment into Europe in 2021 increased by a third from a record low seen in the first year of the pandemic, driven by a combination of acquisitions and greenfield transactions.
The European tech ecosystem is thriving, and VC valuations are following suit. What impact will it have on the long-term health of the ecosystem; its ability to live up to the hype, and maintain momentum in the years to come?
A growing number of renowned U.S. tech investors are moving to Europe to capitalize on the continent's startups. It comes after several European tech companies saw their valuations sky-rocket during the coronavirus pandemic.
British retail investors have spurned funds that back UK companies in spite of growing confidence in the economy as it rebounds from the Covid-19 crisis. Funds invested in UK equities recorded PS2.2bn in outflows during the first half of the year.
The money floating into capital markets is rising. This is good news for startups, as this means more big financing rounds all over Europe – and supposedly higher startup valuations.
<p class="Paragraph-paragraph-2Bgue ArticleBody-para-TD_9x">Sweden's home computer drive, and concurrent early investment in internet connectivity, help explain why its capital Stockholm has become such rich soil for startups, birthing and incubating the likes of Spotify, Skype, and Klarna.</p>
The UK's entrenched regional inequalities could be consigned to the past if institutional investors, such as local government pension funds, direct more of their funds to support local and regional economic development.
A stunning first quarter in venture capital funding was not restricted to the United States; Europe also had one hell of a start to the year.
Europe has started deploying the largest venture capital fund ever created in the region, in its latest attempt to create health and deep-tech startups that will rival the U.S. and Asia.