1、EUROPEANVenture ReportQ320222ContentsPitchBook Data,Inc.John Gabbert Founder,CEONizar Tarhuni Senior Director,Institutional Research&EditorialDylan Cox,CFA Head of Private Markets ResearchInstitutional Research GroupAnalysisNalin Patel Lead Analyst,EMEA Private CNicolas Moura,CFA Analyst,EMEA Privat

2、e CPublished on October 31,2022Click here for PitchBooks report methodologies.DataCharlie Farber Senior Data Analyst Oscar Allaway Associate Data APublishingReport designed by Drew SandersQ3 2022 EUROPEAN VENTURE REPORTIntroduction3Overview4VC deals by region and sector7Nontraditional investors8Spot

3、light:UK&Ireland10Exits12Fundraising163Q3 2022 EUROPEAN VENTURE REPORTINTRODUCTIONIntroduction European VC deal value through Q3 2022 kept pace with deal value in 2021,despite tribulations across economies and financial markets.While pace throughout 2022 YTD kept up with 2021,Q3 has delivered the de

4、cline in dealmaking activity many analysts anticipated this year.We believe capital efficiency,rather than growth at all costs for late-stage investments,has established greater importance in recent months and expect this to continue until 2023.Reports of valuation haircuts,down rounds,and cost cutt

5、ing have been reported,and we anticipate late-stage investors and companies will explore different funding options and display increased prudence to extend funding runways.We believe startups that are several years away from an exit will continue to attract capital in the current market.VC deal valu

6、e with nontraditional investors was in line with 2021s record figure.Despite markets entering correction territory globally,nontraditional investors have continued to participate in VC rounds.With overall deal value falling in Q3,and anticipated to flatten further,we believe nontraditional investor

7、involvement will mirror wider market sentiment.Investment and consolidation in the EV space will remain elevated moving forward,with particular interest from nontraditional sources.VC exit value dropped in Q3 2022 from the elevated levels witnessed in 2021.Though,given that markets have moved from a

8、 macroeconomic environment beneficial to VC exits in 2021 with low interest rates,low inflation,and high valuations to one with increasing interest rates,stagflation,and dropping valuations in 2022,we think VC exits have remained resilient.It has become clear,given the current macro climate,that pub

9、licly listing is not the preferred exit route this year.Exit activity in the software sector and the UK&Ireland region continued to be strong through Q3 2022.VC fundraising displayed resilience in 2022 YTD.The shift in financial markets globally has caused widespread uncertainty;however,stakeholders

10、 involved in fundraising efforts have pressed ahead.Capital commitments have not dried up and fund sizes have remained healthy in 2022 thus far.A clearer picture will emerge in upcoming quarters as monetary and fiscal policy shifts take effect in the VC market.Investors across asset classes have loo

11、ked to capture the returns offered in VC in recent years,and we expect funds to emerge in new jurisdictions that possess considerable capital resources.4Q3 2022 EUROPEAN VENTURE REPORTOVERVIEWOverview 7.4 9.4 12.2 18.9 18.7 24.8 30.6 39.549.1 103.576.03,7555,0336,6246,8797,0727,9729,0189,68710,12612

12、,1919,02720000212022*Deal value(B)Deal countEstimated deal countVC deal activitySource:PitchBook|Geography:Europe*As of September 30,20220%10%20%30%40%50%60%70%80%90%100%20000212022*Late-stage VCEarly-stage VCAngel and seedShare of VC

13、 deal value by stageSource:PitchBook|Geography:Europe*As of September 30,2022European venture capital(VC)deal value topped 76.0 billion through Q3 2022,as capital invested remained on pace with 2021 despite tribulations across economies and financial markets.In Q3 2022,deal value dropped 36.1%quarte

14、r-over-quarter(QoQ)to 18.4 billion,its lowest figure since Q4 2020.While pace throughout 2022 appears to have kept up with 2021,Q3 has delivered the decline in dealmaking activity that many analysts have anticipated this year.However,we could finish the year with the highest recorded annual deal val

15、ue in Europe if activity picks up in Q4.The global boom in VC strategies over the past decade has been driven by an influx of capital and the rapid growth of tech companies.With record inflation causing interest rate hikes,capital has become dearer in recent quarters.Bullish forecasts from the COVID

16、-19 pandemic have been recalibrated,and as economic downturns develop,investors have soured on publicly listed tech stocks with lofty valuations and weaker growth forecasts.Consequently,broader market dynamics have shifted,and securing capital has become challenging across the financial spectrum,inc

17、luding in the VC ecosystem,as evidenced by the decline in deal value in Q3.During the past six years,the proportion of late-stage capital for mature VC-backed companies has underpinned overall growth in deal value figures.In 2021,a record 69.6 billion was invested into late-stage rounds,equivalent t

18、o 67.3%of the total.By comparison,48.0%of the aggregate figure in 2016 was from late-stage rounds.Maturation at the late-stage has been characterised by the development of multimillion-euro VC funds,deep-pocketed international investors,and nontraditional investors targeting Europe-based companies.T

19、he resultant effects have led to an expansion in the availability of capital,larger round sizes for companies looking to grow,and increased competition to get on the best deals.These factors have helped startups 5Q3 2022 EUROPEAN VENTURE REPORTOVERVIEWsecure funding,remain in the VC ecosystem,and en

20、rich the capital lifecycle.Moreover,improved capital availability has encouraged aggressive targets and higher burn rates.Fast-forward to 2022,and the VC ecosystem faces contrasting circumstances.We believe capital efficiency,rather than growth at all costs for late-stage investments,has established

21、 greater importance in recent months and expect this to continue until 2023.Valuation haircuts,down rounds,and cost cutting have been reported in 2022,and we expect late-stage investors and companies to explore different funding options and display increased prudence with capital to extend funding r

22、unways.In Q3 2022,Klarnas 767.0 million round at a 6.4 billion post-money valuation was one of the high-profile rounds of the year.Although the round was sizeable,Klarnas financing in Q3 2022 confirmed widespread speculation that one of Europes most valuable VC-backed companies was expecting a signi

23、ficant valuation haircut from a funding round in 2021.In June 2021,Klarna completed a 524.8 million round at a 37.5 billion post-money valuation,and the most recent financing reflected a 82.8%valuation haircut.We believe Klarna could be the first of several mature VC-backed companies to experience v

24、aluation haircuts in the next few quarters.Market conditions have changed drastically over the past two years and inflated valuations calculated during periods of rosier economic outlooks associated with cheaper capital 20000212022*2.32.22.22.52.73.34.43.53.99.95.52,

25、3221,8403,0692,4992,2792,4362,6102,6312,8543,7682,326Capital invested(B)Deal count20000212022*02,0004,0006,0008,00010,00012,00014,000Follow-on VCFirst-time VCFirst-time VC deal activityFirst-time versus follow-on VC deal countSource:PitchBook|Geography:Europe*As of S

26、eptember 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022availability,sharper recurring revenue growth rates,and heightened spending will need to be reassessed.While it is easy to criticise overheated valuations,early investors in Klarna will argue that securing a multibillion-euro v

27、aluation is a notable milestone for a VC-backed company and it will generate outsized returns.Further,with the bottom of the current downturn unknown,Klarnas down round may have 6Q3 2022 EUROPEAN VENTURE REPORTOVERVIEWbeen concluded prior to conditions worsening in the VC ecosystem.Despite the negat

28、ive coverage associated with the round,a fresh injection of capital should position the company to manage upcoming challenges more effectively than companies running out of runway.While mature companies closer to public markets,which possess financial metrics for analysis,may struggle to maintain gr

29、owth rates and obtain backing,we believe startups several years away from an exit will attract capital in the current market.Investors with dry powder will feel it is the optimum time to deploy capital to take advantage of softer valuations and reduced competition among investors.Meanwhile,companies

30、 looking to disrupt sectors in seven to 10 years will feel near-term volatility is part of the economic cycle and should not impact long-term roadmaps for success.Dealmaking has stayed robust among angel,seed,and early-stage rounds through Q3 2022 as roughly a third of completed deals were first-tim

31、e financings.In Q3,the proportion of first-time rounds is consistent with recent yearly figures and indicates that the desire from stakeholders to source,evaluate,and invest in new VC deals persists.Looking ahead,we believe recent currency parity between the British pound(GBP)and the US dollar(USD)c

32、ould stimulate additional activity in the UK.Globalisation and VC have been intrinsically linked for several years with US-based investors pursuing cheaper Europe-based investments to bolster portfolios and increase returns.The UK is usually the largest VC deal value generator in Europe annually wit

33、h a particularly high concentration of startups and capital flooding into London.As UK investments have become significantly cheaper in US-denominated figures in recent weeks,we believe US-based investors may look to benefit from favourable near-term currency shifts.A drastic shift in deal value or

34、spike in closed deals is highly unlikely,but with costs soaring globally,companies may seek innovative solutions to offset inflationary pressure.US-based companies may look to funnel resources into UK operations and investors may do the same to get better value for their money.20015201620

35、02020212022*Capital invested(B)Deal count3.03.15.18.67.59.512.120.124.268.547.24695746798137619411,1761,3991,5882,5611,806VC deal activity with US investor participationSource:PitchBook|Geography:Europe*As of September 30,20227Q3 2022 EUROPEAN VENTURE REPORTOVERVIEW0%10%20%30%40%50%60%70%

36、80%90%100%20000212022*UK&IrelandSouthern EuropeNordic RegionIsraelFrance&BeneluxDACHCentral&EasternEurope02,0004,0006,0008,00010,00012,00014,00020000212022*Commercial servicesConsumer goods&recreationEnergyHC devices&suppliesHC servic

37、es&systemsIT hardwareMediaOtherBiotech&pharmaSoftware0%10%20%30%40%50%60%70%80%90%100%20000212022*UK&IrelandSouthern EuropeNordic RegionIsraelFrance&BeneluxDACHCentral&EasternEurope20000212022*020406080100Commercial servicesConsumer g

38、oods&recreationEnergyHC devices&suppliesHC services&systemsIT hardwareMediaOtherBiotech&pharmaSoftwareShare of VC deal count by regionShare of VC deal count by sectorShare of VC deal value(B)by regionShare of VC deal value(B)by sectorSource:PitchBook|Geography:Europe*As of September 30,2022Source:Pi

39、tchBook|Geography:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022VC deals by region and sector8Q3 2022 EUROPEAN VENTURE REPORTNONTRADITIONAL INVESTORSNontraditional investors2000182

40、0022*4.25.87.612.112.315.920.127.135.982.258.91,0571,3071,6501,8982,1192,5122,9453,1963,5534,4852,874Capital invested(B)Deal countVC deal activity with nontraditional investor participation Source:PitchBook|Geography:Europe*As of September 30,2022Nontraditional investors,which we define a

41、s corporate VC arms(CVCs)and financial institutions including investment banks,private equity(PE)firms,sovereign wealth funds,hedge funds,and pension funds,among others,have formed part of a burgeoning investor pool for startups in recent years.VC deal value with nontraditional investor participatio

42、n touched 58.9 billion through Q3 2022,on pace with 2021s record figure.Despite markets entering correction territory globally,nontraditional investors have continued to participate in VC rounds.However,with overall deal value falling in Q3,and anticipated to flatten further,we believe nontraditiona

43、l investor involvement will mirror wider market sentiment.VC has enjoyed a bull run for over a decade with nontraditional investors enticed by high-growth companies emerging in nascent sectors.VC investments have enabled corporates to keep abreast of technological development and leverage expertise

44、from growing businesses via strategic partnerships,while financial institutions have been able to diversify portfolios away from core investment areas and generate stronger return profiles for shareholders or limited partners(LPs).Several types of nontraditional investors completed deals through Q3

45、2022.For example,PE giant Advent International invested 250.0 million into the Spain-based artificial intelligence advertising company Seedtag to fuel expansion into the US.It is clear PE backers have boosted capital flows into VC,and experienced and established brand names can provide startups with

46、 expansive networks and strategic guidance for management teams entering new markets.PE firms that are focused on returns and investing in younger high-growth companies can complement existing mature portfolio companies.VC investments make sense for both PE firms,who have amassed substantial dry pow

47、der,and startups,who are seeking cash and mentorship.Asset managers have also displayed strong interest in VC deals in 2022.One notable deal involved UK-based Intermediate Capital Group(ICG)investing 240.0 million into electric vehicle(EV)charging service provider Zeplug through ICG Infra,its infras

48、tructure investment arm.As part of the deal,Zeplug will be merged with Bornes Solutions,another EV charging business,which is part of ICG Infras portfolio.Energy transition and EV adoption is underway in Europe,and with this deal it is clear ICG is actively looking to bolster their portfolio in the

49、space in the long run.The deal also indicates that consolidating multiple smaller startups and adopting a buy-and-build ploy is another strategy used by nontraditional investors in the VC ecosystem.Rather than have multiple small players competing for market share in industries that require scale fo

50、r profits,investors can consolidate entities and grow one company inorganically to dominate an industry,which could ultimately lead to heightened returns.9Q3 2022 EUROPEAN VENTURE REPORTNONTRADITIONAL INVESTORS1:“Lightyear Welcomes Koenigsegg as Partner and Investor,”Lightyear,July 28,2022.0%10%20%3

51、0%40%50%60%70%80%90%100%20000212022*Commercial servicesConsumer goods&recreationEnergyHC devices&suppliesHC services&systemsIT hardwareMediaOtherBiotech&pharmaSoftwareShare of VC deal value with nontraditional investor participation by sectorSource:PitchBook|Geograph

52、y:Europe*As of September 30,2022We expect investment and consolidation in the EV space to remain elevated moving forward,with particular interest from nontraditional sources.Another notable EV VC deal in Q3 involved Invest-NL and Sweden-based supercar maker Koenigsegg investing 81.0 million into sol

53、ar vehicle developer Lightyear.The investment is part of a more extensive technology-sharing partnership in which the two automakers will share proprietary and patented information.1 Strategic partnerships in the EV space are becoming more frequent.In Q2 2022,carmaker Porsche invested in EV producer

54、 Rimac Automobili,and Volkswagen participated in a round for EV battery developer Northvolt in Q3 2022.With combustion engine cars on track to be phased out over the next few decades in Europe,EV players appear to be long-term bets with wide economic moats for investors.As new companies emerge with

55、cutting-edge EV technology,we believe VC dealmaking will remain healthy in coming years.10Q3 2022 EUROPEAN VENTURE REPORTSPOTLIGHT:UK&IRELANDSpotlight:UK&Ireland20000212022*2.63.13.96.86.310.011.213.415.631.622.51,2611,6692,2642,2702,3422,7543,1733,3413,4423,9782,620

56、Capital invested(B)Deal countUK&Ireland VC deal activity Source:PitchBook|Geography:UK&Ireland*As of September 30,2022This spotlight is abridged from our 2022 UK&Ireland Private Capital Breakdown.Please see the full report for the full analysis.UK&Ireland VC deal activity defied macroeconomic and po

57、litical uncertainty in 2022 YTD.The pace set through Q3 2022 aligned with the record figures logged in 2021.As evidenced by VC dealmaking activity this year,capital has continued to flow freely into UK-&Ireland-based startups despite anticipated recessions.The shift in monetary policy from historica

58、lly low interest rates that promoted growth,spending,and borrowing is notable and its impact on the VC dealmaking environment will be clearer as we progress into Q4 2022.VC deal activity growth has been considerable year-over-year(YoY)during the past decade,and we believe a flattening could take pla

59、ce in 2023,rather than a sharp decline.As spending tightens and growth becomes challenging,late-stage companies with high burn rates could be the first to rein in costs,adjust aggressive growth targets,and slow hiring sprees.We believe late-stage companies that require financing in the current clima

60、te may face haircuts,especially those who experienced soaring valuations during pandemic-induced lockdowns.Online discretionary spending increased during COVID-19 lockdowns,but with the cost of living now surging in the UK,consumer-facing businesses will struggle to maintain growth rates witnessed d

61、uring the past two years.The maturity of UK-based companies has enabled larger rounds to close in the region.As startups have been able to leverage the vast financial resources of investors in European,US,and Asian markets,the UK is the natural launchpad for US-or Asia-headquartered LPs,general part

62、ners(GPs),and portfolio companies to expand into Europe.Brexit has complicated certain EU processes;however,in contrast to initial fears,there has not been a mass exodus of companies,funds,or talent from the UK ecosystem in the past few years.Vast experience in the financial services sector has tran

63、slated into a burgeoning financial tech(fintech)VC scene.Within the UK ecosystem,London-based fintech companies have become the most prominent in the region.A glut of high-profile companies obtaining sizeable backing and reaching lofty valuations,including C,Revolut,Rapyd,Monzo,Starling Bank,and oth

64、ers,has emerged.Top talent has been lured from established financial institutions(FIs)to either carve out their own business or help build companies disrupting incumbents.11Q3 2022 EUROPEAN VENTURE REPORTSPOTLIGHT:UK&IRELANDFurthermore,existing relationships and integrated networks between companies

65、,individuals,and FIs in local clusters,such as London,have boosted the likelihood of success,cross-pollination of ideas,and investments to be struck.Within the UK ecosystem,London-based fintech companies have emerged as the most prominent in the region.As witnessed across Europe in 2022 YTD,UK&Irela

66、nd exit activity retrenched from the bumper showing in 2021.2021 was an outlier year due to a mixture of VC-backed companies rushing towards an exit to take advantage of heightened valuations and beneficial market conditions.Pandemic-driven growth has curtailed,and companies focusing on growth at al

67、l costs are increasingly looking to improve capital efficiency in the current bear market.As a result,exits have declined,with founders,companies,and investors unwilling to test out their private market valuations in public markets for fear of damaging their returns.Despite a multitude of macroecono

68、mic challenges,including rising interest rates,fundraising has displayed resilience in this region.In 2022 YTD,several funds closed may have launched prior to the shifting financial markets during the past few months.Nonetheless,capital commitments have remained healthy.It is worth noting that fundr

69、aising processes can take months,with multiple relationships required with LPs.Figures are typically lumpy and skewed towards a group of outsized funds.Therefore,major changes in activity can take several quarters to feed into data.12Q3 2022 EUROPEAN VENTURE REPORTEXITSExits05003003500102

70、03040506070Q1Q2Q4Q3Q1Q2Q4Q3Q1Q2Q4Q3Q1Q2Q4Q3Q1Q2Q4Q3Q1Q2Q32002020212022*Exit value(B)Exit countEstimated exit count0%10%20%30%40%50%60%70%80%90%100%Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q32002020212022*500M+100M-500M50M-100M25M-50MUnder 25MVC exit activityShare of VC exit

71、count by size bucketSource:PitchBook|Geography:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022European exit value reached 33.6 billion YTD,down 70.4%YoY,although 2021 was an outlier year in terms of exit value.In Q3 alone,exit value dropped significantly to 2.

72、8 billion,down 95.3%YoY and 81.7%QoQ,making it the lowest quarter since Q1 2020.Q3 stands out as there were no large exits over 500 million.However,it is not all doom and gloom as 2022 could still be on track for its second-best year ever with exit count already at 878 YTD.Given that we have moved f

73、rom a macroeconomic environment beneficial to VC exits in 2021 with low interest rates,low inflation,and high valuations to one with increasing interest rates,stagflation,and dropping valuations in 2022,we think VC exits have remained resilient.13Q3 2022 EUROPEAN VENTURE REPORTEXITSWith the sell-off

74、 witnessed in public markets in 2022,especially within the tech sectoriShares STOXX Europe 600 Technology is down 31.4%YTDit comes as no surprise that public listing exits,including initial public offerings(IPOs),direct public offerings(DPOs),and special purpose acquisition companies(SPACs),have slo

75、wed this year with only seven public listings recorded in Q3 in Europe.It has become clear,given the current macro climate,that publicly listing is not the preferred exit this year:none of the 15 largest exits in Q3 have been public listings.In fact,almost all of the VC-backed IPOs this year in Euro

76、pe have been micro-caps:companies with a market capitalisation of less than 300 million.VC-backed companies will have monitored the performance of recently publicly listed companies.For example,Wises share price is down some 30%since their IPO in July 2021,and Deliveroo is down 67%since their IPO in

77、 April 2021,as of October 27,2022.Acquisitions by other companies are the preferred exit.This is when the portfolio company is sold to a larger company looking to add value through 80.432.533.252.20204060801001202012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022*Public listingAcquisition/buyoutV

78、C median post-valuation(M)by typeSource:PitchBook|Geography:Europe*As of September 30,202220000212022*Investment/exitInvestment countExit count9.9x12.0 x11.3x10.5x12.3x11.9x14.4x13.3x14.0 x9.8x10.3x9,02787802,0004,0006,0008,00010,00012,00014,0000 x2x4x6x8x10 x12x14x1

79、6xVC investment/exit multiplesSource:PitchBook|Geography:Europe*As of September 30,20222:“iShares STOXX Europe 600 Technology UCITS ETF(DE),”iShares by BlackRock,accessed October 19,2022.14Q3 2022 EUROPEAN VENTURE REPORTEXITS0 20 40 60 80 100 120 140 160 20000212022*

80、BuyoutPublic listingAcquisition02004006008001,0001,2001,40020000212022*BuyoutPublic listingAcquisitionVC exit value(B)by type VC exit count by type Source:PitchBook|Geography:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022the a

81、cquisition of the purchased companys product,technology,or customer base.For the first time in years,valuations for acquisitions and buyouts are tracing higher than public listings with the median post-valuation rising to 52.2 million YTD versus 32.5 million for public listings.We have seen large co

82、nglomerates snap up smaller companies.For example,DigitalOcean acquired Cloudways in Q3,which we discuss in detail later.We observe that the ratio of investments to exits has been trending lower in the past two years with roughly 10 investments for every one exit.In 2021,the reason for this was that

83、 the exit count nearly doubled from 2020 figures.For 2022,we have seen investment count flatten to pre-2021 levels and exit count decline as VC owners became pickier and more cautious around investing and exiting.Software companies in particular have seen their largest share of the total exit value

84、at 51%for 2022,tracking for its highest proportion since 2018.For example,DigitalOcean acquired Cloudways for 346.2 million in Q3 to further integrate vertically.The deal made perfect sense as DigitalOcean had been working with the cloud hosting company Cloudways since 2014;the latter deriving 50%of

85、 its customer base from DigitalOcean.3:“DigitalOcean Boosts Web Hosting Offering with$350m Cloudways Acquisition,”TechRadar,Abigail Oplah,August 25,2022.20000212022*Commercial servicesConsumer goods&recreationEnergyHC devices&suppliesHC services&systemsIT hardwareMed

86、iaOtherBiotech&pharmaSoftware51%020406080100120VC exit value(B)by sectorSource:PitchBook|Geography:Europe*As of September 30,202215Q3 2022 EUROPEAN VENTURE REPORTEXITSIn Q3,the UK&Ireland continued to dominate,representing almost half of all exits in Europe in terms of value,and 27.1%of exits in ter

87、ms of count.Historically,the UK&Ireland have been the VC hub of Europe benefiting from a favourable regulatory environment.More recently,the former UK Chancellor,Kwasi Kwarteng,announced the UK mini-budget,and although the headlines focused on tax cutting,the tax relief for early-stage startups was

88、a boost for VCs in the UK.Plans to increase the amount that companies can raise through seed enterprise investment schemes(SEIS)rose from 150,000 to 250,000.Meanwhile,the gross asset limit will more than double to 350,000.Fortunately for the UK VC ecosystem,these measures survived the policy reversa

89、ls set out by incoming Chancellor Jeremy Hunt who replaced Kwarteng after his sacking on October 14.4 Although these measures will most positively impact fundraising,increased capital flows in the VC ecosystem will promote future exit activity in the long run.Q3 was most notable for UK exits within

90、the consumer products and services sector such as Secret Cinema,acquired by TodayTix for 103.0 million,YourParkingSpace,acquired by Flowbird for 140.0 million,and Fat Llama,acquired by Hygglo for 40.7 million.The common denominator among these exits,bar the sector and type of exit,is that the acquis

91、itions are all by companies based outside the UK that have benefited from the recent drop in the pound sterling.USD/GBP fell to its lowest point since 1985 on September 25 at$1.0350/.To summarise,the lower valuations,combined with a weaker GBP,makes UK software companies prime acquisition targets fo

92、r companies outside the UK,especially USD-denominated ones.This is a trend here to stay,as the UK may enter a recession by the start of next year,having narrowly missed it after Q2 gross domestic product(GDP)increased only 0.2%.0%10%20%30%40%50%60%70%80%90%100%Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q

93、4Q1Q2Q32002020212022*UK&IrelandSouthern EuropeNordic RegionIsraelFrance&BeneluxDACHCentral&Eastern EuropeShare of exit value by regionSource:PitchBook|Geography:Europe*As of September 30,20224:“SEIS Extension Survives Hunts Mini-Budget Bonfire,”UK Tech News,George Simister,October 17,2022

94、.16Q3 2022 EUROPEAN VENTURE REPORTFUNDRAISINGFundraising20000212022*Capital raised(B)Fund count10.6 8.4 9.5 11.0 16.7 22.5 16.1 21.2 20.9 24.1 19.762742785145VC fundraising activitySource:PitchBook|Geography:Europe*As of September 30,2022Europea

95、n VC fundraising displayed resilience through Q3 2022 with 19.7 billion raised across 145 VC funds.If the current pace continues,fund count will finish below,and capital raised will land above,figures from 2021 at the years conclusion.The shift in financial markets globally has caused widespread unc

96、ertainty;however,stakeholders involved in fundraising efforts have pressed ahead.Funds closed indicate LPs and GPs are bullish on opportunities available in the VC ecosystem.Capital commitments have not dried up,and fund sizes have remained healthy in 2022 thus far.As interest in VC has crystallised

97、 in the past decade and activity has boomed in recent years,many analysts would have anticipated a sharper decline in fundraising levels.Nonetheless,multiple factors could be influencing fundraising figures and time lags could be in effect.For example,funds closing in recent weeks may have been open

98、 for several months.Therefore,a clearer picture will be evident in upcoming quarters as monetary and fiscal policy shifts take effect in the VC market.Northzone raised 1.0 billion for its tenth fund in Q3 2022,making it one of the largest funds ever to close in Europe.The size of Northzones fund ill

99、ustrates how established fund managers with vast experience through previous downturns have had limited difficulty raising fresh funds in the current climate.Northzone has established itself as a major GP in Europe,investing in roughly 20 deals per year since 2014,with notable exits in 2018 includin

100、g the DPO of Spotify and the acquisition of Zettle by PayPal,formely known as 1B+500M-1B250M-500M100M-250M50M-100M50M 0%10%20%30%40%50%60%70%80%90%100%20000212022*Share of VC fund count by size Source:PitchBook|Geography:Europe*As of September 30,2022iZettle.The Nort

101、hzone X fund indicates that trends shaping the VC industry are still filtering through in 2022,with GPs increasing their ability to write larger cheques by raising bigger funds from LPs willing to commit greater sums of capital.Furthermore,major funds in 2022 for Felix Capital,Creandum,Blossom Capit

102、al,and Earlybird demonstrate 17Q3 2022 EUROPEAN VENTURE REPORTFUNDRAISINGthat experienced,pure play VC GPs have been able to entice capital commitments despite worsening wider financial forecasts.LPs remain confident that seasoned GPs will invest their money in the best founders and ideas to generat

103、e outsized inflation-beating returns in the long run.As markets move into a recessionary environment,one area of the VC fundraising landscape earmarked to struggle is first-time funds.LPs may opt to commit capital to funds managed by veteran GPs with strong track records,deep industry networks,and s

104、uccessful exits.Despite the natural tendency to shift focus inwards towards existing relationships and become more risk averse with capital allocations,first-time fundraising activity has been solid through Q3 2022 with 2.6 billion raised across 39 funds.GPs concentrating on undercapitalised emergen

105、t sectors are often key drivers of capital infusions into first-time funds.We have seen this trend play out in recent quarters with substantial funds closing focusing on clean energy,life sciences,mobility,and foodtech.LPs are constantly scouring for return-generating strategies,and first-time funds

106、 can present unique long-term opportunities.As has been the case historically,capital raised through Q3 2022 was largely concentrated in the UK&Ireland,France&Benelux,and the DACH region.One notable fund to close outside these regions was the 397.8 million Monaco-based O.G.Tech Fund II.As discussed

107、in our VC in Southern Europe analyst note,Monaco is laden with highly capitalised backers.Favourable taxes and luxury offerings have made Monaco an 20000212022*Capital raised(B)Fund count 1.6 2.4 2.3 2.9 5.7 3.5 3.1 6.4 3.5 5.1 2.64850831041098039First-tim

108、e fundraising activitySource:PitchBook|Geography:Europe*As of September 30,20220%10%20%30%40%50%60%70%80%90%100%20000212022*UK&IrelandSouthern EuropeNordic RegionIsraelFrance&BeneluxDACHCentral&Eastern EuropeShare of capital raised for VC funds by regionSource:PitchB

109、ook|Geography:Europe*As of September 30,2022established location for wealthy individuals tied to financial institutions such as hedge funds,family offices,and private banks managing significant amounts of capital.O.G.Tech was launched in 2017 by Eyal Ofer as a single LP VC fund,and it is part of the

110、 broader Ofer Global group.Investors across asset classes have looked to capture the returns offered in VC in recent years,and we expect funds to emerge in new jurisdictions that possess considerable capital resources.Additional researchCOPYRIGHT 2022 by PitchBook Data,Inc.All rights reserved.No par

111、t of this publication may be reproduced in any form or by any meansgraphic,electronic,or mechanical,including photocopying,recording,taping,and information storage and retrieval systemswithout the express written permission of PitchBook Data,Inc.Contents are based on information from sources believe

112、d to be reliable,but accuracy and completeness cannot be guaranteed.Nothing herein should be construed as any past,current or future recommendation to buy or sell any security or an offer to sell,or a solicitation of an offer to buy any security.This material does not purport to contain all of the i

113、nformation that a prospective investor may wish to consider and is not to be relied upon as such or used in substitution for the exercise of independent judgment.Europe and private equityQ2 2022 European Venture ReportDownload the report here.Q3 2022 European PE BreakdownDownload the report here.2022 UK&Ireland Private Capital BreakdownDownload the report here.Q3 2022 Global M&A ReportDownload the report here.More research available at