2022 the start of a new VC Cycle? — European Startup Pulse

Startuprad.io
Startuprad.io
Published in
5 min readMar 9, 2023

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Executive Summary

We are back with quarterly cooperation with DEEP Ecosystems research from Munich. Today we talk about a few highlights of their extensive 2022 report. Our current impression is that the VC market could start a new cycle from the lows of Q4 2022. We already see a new uptick in seed investments in Barcelona, London, Paris, Berlin, and Stockholm. Also, London is losing some of its edge as a European Startup Ecosystem compared to the other hubs. For VCs, the next hot sector to invest in Europe is cleantech. Despite the job cuts in 2022, at the year’s end, there still have been more employees at startups across Europe than before Corona.

The mood is down in the venture capital market. Startups definitely feel the crunch, but there is still dry powder available.
Thomas Kösters — DEEP Ecosystems

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In Q3 2022, London was — for the first time — not the city with the most fundraisings in Europe. That has been a given for many years that London leads the way in Europe.
Thomas Kösters — DEEP Ecosystems

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About the Pulse of the European Startup Ecosystem

The European startup scene is changing fast. There are new players, old ones fading away, and even more to come in their place- all vying for a piece of this growing pie! To avoid getting left behind, you need regular updates on what’s going on so that our entrepreneurs can stay one step ahead when building or investing in companies here. That’s why we started the “Pulse of the European Startup Ecosystem” which will provide you with quarterly podcasts chronicling different aspects related to startup activity across European Hubs, supported by the data from the specialized analytics company DEEP Ecosystems.

Berlin is the European Capital of Meetups.
Thomas Kösters — DEEP Ecosystems

The Video Interview is set to go live on Thursday, March 9th at 10 o’clock CET

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The Audio Interview

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Some Highlights

Startup funding took a hit on a European Level across the board regarding total investments, especially in Q4 2022. This matches what we have seen in our interview with kfw covering their VC and PE barometer.

On the excellent news site, there is a substantial uptick towards the end of the year 2022 in announced seed funding rounds. All large European Hubs, Barcelona, London, Paris, Berlin, and Stockholm, showed more seed funding rounds. Only Amsterdam did show a decline, which may be due to the available data.

Exits and large fundraisings have filled the coffers of VCs, who build up their teams during the good years. This leads to increasing pressure to invest on the VCs by their investors, called LPs (think insurance companies and pension funds).

Cleantech has also emerged as a new growth sector for VC investments — on a European level. In the last 6 months, compared to the last 3 years, cleantech investments have increased disproportionally.

Classic sectors for VC investments remained sexy in the 2nd half of 2022, including fintech, media, health, and AI & big data.

Hardware is also a sector — along with consumer apps — just on the edge of becoming a growth story for VC investments.

Despite the job cuts announced in recent weeks or months, there is still net positive job growth in the European Startup Ecosystem — compared to before corona.

Meetup participation shows strong interest in startups and tech topics across Europe. Here Berlin took over London in the process.

2022 London in decline

  • Q3 London lost its prime position to Stockholm — for the first time, they are tracking the cities.
  • London is losing its edge
  • Connection to the entrepreneur survey. London is less popular than Berlin. Investments are a lagging factor

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The Interviewer

This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Startuprad.io. Reach out to him:

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Topics Discussed in this Interview

In this interview, we are talking about

#Innovation #startup #startups #startupradio #entrepreneurship #entrepreneur #business #motivation #success #entrepreneurship #mindset #goals #entrepreneurlife #lifestyle #businessowner #believe #positivevibes #branding #innovation #techstartups #germany #startupinvesting #startupnews #startupcompany #london #berlin #stockholm #barcelona #paris #venturecapital #startupjobs #seedfunding #cleantech #europe #europeanvc #venturecapital #funding

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#Management #HumanResources #DigitalMarketing #Technology #Future #Startups #Entrepreneurship #VentureCapital #LeanStartups

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