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Laxman Pai, Opalesque Asia: European venture deal sizes are continuing to grow larger despite increased pressure on dealmaking, revealed a study.
According to PitchBook's Q2 2022 European VC Valuations Report, despite falling public tech stocks and a bleak market outlook, European venture valuations still paced above last year's figures in the first six months of the year.
"VC dealmaking in Europe remained strong in H1 despite a myriad of headwinds which helped keep valuations afloat, but as the year progresses, the full impact of a downturn may cause startup price tags to deflate," it said.
Early-stage European valuations remained relatively insulated from public market volatility, currently pacing 34.1% higher than in 2021. The number of down rounds ticked upwards slightly to now stands at 15.4% of rounds closed in H1.
In the meantime, the median early-stage deal size increased by 32% to €2.5 million, while the median late-stage deal size grew 38%, despite the stage being the most affected by public market volatility and concerns about the asset class's overvaluation.
Meanwhile, the total worth of European unicorns grew 34.8% mostly due to strong dealmaking in Q1.
The study also revealed that a significantly quieter IPO market has seen public listing exit valuations drop by 56.8% from 2021.
VCs are still sitting on a considerable amount of capital that needs to be deployed regardless of the economic climate. Globally, venture inves...................... To view our full article Click here
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