1. Tech Investment Activity
• Nasdaq experienced a significant drop, with a 24% decrease year-to-date, equating to a $5 trillion loss in value.
• Notable dispersion in tech stock performance.
2. Investor Landscape
• VC investment in EMEA startups remains high, though there is a noticeable slowdown compared to previous quarters.
• Significant investment activity in Series C & D rounds, with round sizes spiking in 2021.
3. Future of Venture Capital
• Despite a slowdown, the investment levels in 2022 are already matching the total investment levels of 2020.
• A noticeable pullback from US and Asian investors, with increased focus on European and domestic investors.
• The number of unicorns in EMEA has increased, but the creation rate is slowing down.
Trends and Observations
• Investor Behavior: A shift in investor types with more involvement from non-VC groups and corporates.
• Top Seed Investors: Local Globe, Index Ventures, and Accel are among the top seed investors in EMEA for 2022.
• Investment Trends: Top 10% of investors account for 90% of unicorn investments at the seed stage.
Economic and Market Context
• Global Equity: Europe’s share of the global equity market has shrunk considerably.
• Tech Dominance: The global tech sector remains dominated by U.S. companies in core domains like search, social media, and cloud hosting.
Future Opportunities
• Cloud/SaaS Adoption: Enterprise spending on Cloud/SaaS is expected to see significant growth.
• Emerging Technologies: Increased corporate demand for AI, IoT, and cybersecurity solutions.
• Market Expansion: Entrepreneurs are targeting larger markets, from media and fashion to health and education.
Societal Impact
• Job Creation: VC-backed companies have a significant potential for job creation, particularly in Europe.
• Addressing Global Challenges: Many startups are focusing on solving major global issues.
Strategic Insights
• Exponential Age and Entrepreneurial Age: Highlighting the importance of startups and venture capital in driving innovation and economic growth in an increasingly digital and competitive global market.