PitchBook - European Venture Report, 2023

The report discussed in covers the European venture capital market in Q2 2023 and provides information on trends, deals, fundraising, and other relevant topics. The report includes several reports on private capital, venture capital, and private equity, which are available for download on the PitchBook website. However, the report does not claim to contain all the information that a prospective investor may wish to consider and should not be relied upon as such or used in substitution for the exercise of independent judgment. The report is based on information from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.  The report highlights that investors have become more cautious, leading to a slowdown in venture capital deals and fundraising becoming more challenging. Instead, venture capitalists have started working with their startups to restructure their internal operations and extend their funding timelines. This has led to a shift in company strategies from growth at any cost to cost management, resulting in layoffs and hiring freezes across the startup ecosystem. The technology sector has likely faced the most layoffs. For startups with low growth rates that need funding to survive, lower valuations and cost-cutting measures are likely. However, companies that were previously not inclined to raise capital to avoid valuation decreases may now seek capital despite lower valuations.