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Laxman Pai, Opalesque Asia: European venture capital deal value totaled €10.6 billion ($12.3bn) in Q3 2020, marking one of the strongest quarterly showings on record, and the third time quarterly deal value has exceeded €10 billion, said a study.
The European Venture Report by Pitchbook said that deal value for the year stands at €29.5 billion as of Q3 2020 and is on pace to surpass the record €37.2 billion deployed in 2019.
"We believe these strong figures portray the long-term resilience of the VC ecosystem and dispel the idea that pre-pandemic deals have inflated overall deal value figures in 2020," said the report.
Broader investor pools and mature startups have been key drivers of deal value over the last five years and helped sustain activity in recent months.
Europe's developed ecosystem has churned out enormous rounds with increased frequency, propelling aggregate deal value figures to new heights. For example, Klarna, an online payment platform based in Sweden, closed a €548.7 million round in Q3, which nearly doubled its valuation to €8.4 billion.
Led by US-based PE group Silver Lake Management, the round emphasizes the impact new investors such as PE groups can have on the ecosystem. "Klarna has raised over €1.6 billion since founding, and we believe late-stage startups that remain in the ecosystem and attract investors for outsized rounds will persistently shift deal value figures upwards," Pitchbook said.
When the pandemic hit, industry e...................... To view our full article Click here
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