"Expect raising follow-on rounds to be more challenging in the next few months...that being said, we have seen financing rounds completing at 2021 prices in recent weeks". This is what I'm seeing as well. Funding hasn't fallen off a cliff, and there's still a lot of dry powder in venture overall. Also, one result of there being so much public LP money in European venture means if and when there is a downturn, the market likely won't dry up as quickly as in the past. Good read from the folks at Cherry Ventures. 🍒 👍🏻 https://lnkd.in/ex992Qtd #venturecapital #vc #startups #entrepreneur #entrepreneurship
As I said, Europe is in the similar place North America was in 1995.
Christopher Nielsen we talked about this today
Innovation is the new oil in my opinion since 2000. What worries me is the difference in the availability of funding: Europe 26 bn Q1 vs. 71 bn in the US. Europe has sound innovation in research organizations thanks to initiatives like Horizon Europe. But looking at the per capita VC investment - population-wise Europe is twice the size of the US but deploys only little more than a third of venture capital to development companies. Ultimately it are the development companies that create an ROI on tax money used for public funding.
Interesting read. Just today the German "Handelsblatt" has published a piece with the title:"Sentiment on the investment market collapses". Would be great if you could share your opinion on that: https://nachrichten.handelsblatt.com/5b4caa93731e35af49277cf0fc5fa25dabf4e9a1ed1fc61f48d5b5ad2528b06fb1de6d7b034eeb5e40fded008f7cbafe?utm_source=app
Probably accompanied by a shift away from fluffy and volatile software ventures towards tangible infrastructure projects and hard tech. Would fit the strategic narrative of public LPs.
Chief Investment Officer at Reference Capital | Venture Capital
3yExactly, $280B tied up for the next 3-5 years. The timeline to deploy just shrinks if VCs decide to hold fire now. In context, $70B in US alone or all of 2019 fundraising was raised in Q1-22. With this much dry powder, I’m very interested to see if VCs continue to compete on price at earlier stages (thus directly sacrificing returns on adjusted late stage) or if discipline starts and VCs compete on product offering (network, expertise, support, promises). Either way no sign of slow down