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Laxman Pai, Opalesque Asia:

While Europe showed resilience in Q2 2020, there is growing concern that the venture capital (VC) market in Europe could see large impacts in Q3'20 given the widespread effect of COVID-19 on the economy, ongoing potential impact of Brexit, and the challenges associated with international deal-making in the current business environment.

According to a KPMG report, the global pandemic has shifted consumer behaviors sharply in Europe, accelerating several digital trends, including the use of online food delivery, e-commerce, contactless payments, and digital payments. This is having a resonating impact on the VC market.

In April, for example, UK-based Deliveroo got provisional approval from the CMA for a $575 million funding round backed by Amazon in part due to the impact of COVID-19. Other sectors benefitting from this acceleration in digital trends include fintech, B2B solutions, data analytics, and cybersecurity.

Other sectors benefitting from this acceleration in digital trends include fintech, B2B solutions, data analytics, and cybersecurity, said the report.

Many VC investors in Europe spent more time on the day-to-day management of their portfolio companies in Q2'20 given that even their robust companies were affected by the pandemic.

VC investors focused on assessing how the pandemic has changed companies' strategic plans, identifying how best to support companies so they can survive, and providing bridge financing rounds......................

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