investments in European startups will fall by almost half in 2023 – Kommersant

Venture company Atomico presented its annual State of European Tech Report with an analysis of the situation in the market of European technology companies. According to her forecasts, in 2023 investments in such companies will fall by almost half, amounting to $45 billion versus $82 billion in 2022.

Atomico analysts note that private investment is decreasing not only in Europe, but throughout the world – in conditions of macroeconomic instability, market volatility, etc. Compared to 2020, venture capital investments in Europe in 2023 will increase by 18%, while in other regions they decreased: by 1% in the USA, by 7% in China and by 8% in other countries. “The European tech scene looks more stable now than at any other time since the pandemic. We see that this brings back certainty, promotes a little more predictability and helps restore trust,” said Tom Wehmeier, Atomico partner and head of the division that produces the report.

The number of large investments decreased especially significantly: in the first nine months of 2023, there were only 36 transactions worth more than $100 million and only 7 worth more than $250 million – compared to 163 and 38, respectively, in 2022. Among European countries, the UK remains the leader in investment inflow: its technology companies will attract $12.7 billion in 2023. It is followed by France ($8 billion), Germany ($7.8 billion), and the Netherlands ($2.1 billion). As for the countries from which investments come, a particularly strong decline was noted by American companies. Now they account for only 34% of all investments versus 66% in 2021.

Yana Rozhdestvenskaya