European Startup Funding Coping with US Investor Withdrawal
A significant decline in European startup funding is highlighted in a recent Atomico research on the continent's digital scene. This decline is mostly attributable to inflation, rising interest rates, and geopolitical unpredictability. It is anticipated that European startups will raise roughly $45 billion this year, a substantial decrease from the $85 billion they raised in 2022. The yearly report provides a thorough summary of the present situation regarding tech investment in Europe.
A noteworthy finding of the paper is the reduction in funding from Seed to Series C, with a more noticeable effect on later-stage firms. It is anticipated that there would only be 7 new unicorns (startups valued above $1 billion) in Europe this year, compared to 48 in 2022 and 108 in 2021. This is in...