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Bullish or bearish? What to expect for Europe VC activity in 2022 – TechCrunch

With one other yr of enterprise capital data in the books, it’s time to look ahead.

Global knowledge was clear: The 2021 enterprise capital startup funding cycle was record-breaking; all over the world, startups raised extra money than ever earlier than, with particular person geographies posting all-time hauls.

Africa had a killer year. North America was sizzling. Latin America was busy. Asia was alight, even underneath the load of a regulatory crackdown in China. But Europe. Europe was very busy, one thing that we explored earlier this week.

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PitchBook data collected on the European 2021 funding cycle pegs enterprise activity at €102.9 billion, up round 120% from 2020 ranges. CB Insights data signifies that European startups raised $93.3 billion final yr, up 142% in contrast to 2020 outcomes. Both sources reported rising quantity as properly, indicating that the continent didn’t merely see late-stage rounds push its numbers up.

But there’s potential market chop on the horizon. The latest inventory market selloff of key comps to high-growth, richly valued startups is inflicting tremors. TechCrunch has explored the idea, however lest you assume that we’re enjoying some type of subversive Chicken Little routine, the concept that the enterprise capital perspective on startup fundraising is altering is one thing that CNBC, Newcomer and different publications are actively investigating.

In late December, The Exchange requested if the period of super-rich software program valuations was behind us. Today we would like to increase the query to embrace all startups and slim our focus to Europe. What’s forward for the red-hot startup market this yr?

To assist us with that query, we corralled Nalin Patel, EMEA VC Analyst at PitchBook, and Christoph Janz, co-founder at Point Nine Capital, to assist us dig into what’s forward for European enterprise activity.

What’s at stake? The well being and continued progress of lots of of billions of {dollars} of private-market wealth.

Why Europe might speed up in 2022

The incontrovertible fact that Europe had an incredible 2021 might imply two issues: That it may well’t proceed at that tempo, or that the elements are in place for an excellent larger 2022. It’s the latter that PitchBook’s Nalin Patel is betting on, with observations regarding either side of the desk.

On the investor aspect, Patel identified that there’s a ton of dry powder accessible from quite a lot of sources. “International and nontraditional investors including corporate VCs, PE firms and sovereign wealth funds, along with larger traditional VC funds, compete fiercely to invest in fast-growing European startups looking to scale globally.”



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