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

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

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With another year venture capital records in the books, it’s time to look ahead.

The global data was clear: the 2021 venture capital startup investment cycle broke records; Around the world, startups have raised more money than ever before, with individual geographies posting all-time rides.

Africa has had a killer year. North America was hot. Latin America was occupied. Asia was on, even under the weight of a regulatory crackdown in China. But Europe. Europe was very busy, something we explored earlier this week.

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PitchBook data collected on the 2021 European investment cycle pegs venture capital activity at €102.9 billion, up around 120% from 2020 levels. Data from CB Insights indicates that European startups raised $93.3 billion last year, up 142% from 2020 results. Both sources also reported an increase in volume, indicating that the continent has not just seen the late rounds push his numbers up.

But there is a potential market on the horizon. The recent stock market sale of key comps to high-growth, richly valued startups is causing jolts. TechCrunch explored the concept, but lest you think we’re playing some sort of chicken little subversive routine, the idea that the capital risk the perspective on seed fundraising is changing is something that CNBC, Newcomer and other publications are actively studying.

At the end of December, The Exchange asked if the era of super-rich software valuations was behind us. Today we want to broaden the question to include all startups and focus on Europe. What awaits the booming startup market this year?

To help us answer this question, we brought together Nalin Patel, EMEA VC Analyst at PitchBook, and Christopher Janz, co-founder of Point Nine Capital, to help us explore what lies ahead in European venture capital activity.

What’s at stake? The health and continued growth of hundreds of billions of dollars of wealth in the private market.

Why Europe could accelerate in 2022

The fact that Europe had a great 2021 could mean two things: that it cannot continue at this pace, or that the ingredients are in place for an even greater 2022. The latter is bet on by PitchBook’s Nalin Patel, with observations regarding both sides of the table.

On the investor side, Patel pointed out that there is a ton of dry powder available from various sources. “International and non-traditional investors, including venture capital firms, private equity firms and sovereign wealth funds, as well as larger traditional venture capital funds, are competing fiercely to invest in startups. fast-growing European companies looking to expand globally.”

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

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