Education Corner ?? Active VCs in EU fall by 50%

Recent data from PitchBook reveals significant shifts in Europe’s VC landscape, impacting both investors and startups alike:

• Decline in Active Investors ??: The number of active VC investors in Europe has plummeted by more than 50% compared to 2023.
• Impact on Deal Making ??: The slowdown in VC dealmaking since 2022 has led many firms to focus on supporting existing portfolio companies rather than making new investments. This cautious approach persists, although a rebound in deal activity is anticipated for this year.
• Challenges in Fundraising ??: Fundraising for European VC firms has been particularly challenging, reflected in a 50.7% decrease in the number of VC funds in 2023 compared to the previous year. Capital raised also declined by 38% during the same period.
• Investor Sentiment ??: A notable 13% of global venture GPs are not planning to raise another fund, and 27% have delayed their fundraising plans due to market conditions and investor uncertainty.
• Industry Restructuring ???: Some VC firms have been acquired or shut down operations.

This trend reflects a cautious approach among investors, particularly noticeable at events like SuperVenture/SuperReturn, where some LPs are focused on investing in established funds while others have paused or postponed their investing activities. This is why we are particularly proud to have launched in such tough times, and we are convinced it will benefit long-term returns.

The VC industry is constantly evolving and undergoing changes such as acquisitions, closures, and shifts in investor strategies. Staying informed about these changes is crucial because they directly impact investment opportunities, startup funding, and the overall future of technology and innovation.