Resilient UK and Ireland buck trend as European VC stumbles

According to the 2023 European Venture Report by PitchBook, venture capital (VC) funding in Europe fell by almost 50% last year, due to a difficult macroeconomic environment. However, the report revealed that the UK and Ireland remained resilient in raising capital. VC deal value in Europe totalled €57.1bn ($64.1bn) last year, a decline of 45.6% compared to 2022. The total VC funding raised in Europe amounted to €17.2bn, down almost 39% from 2022. Despite the decline, VC deal value in 2023 remains higher than in previous years, with cleantech attracting the highest tier of venture capital. The report found that the software sector was the most negatively impacted by regulation and that exits were the weakest area of VC last year. Exit valuations were down more than 70% YoY and at the lowest level since 2013, with weak public listing activity being a main factor.