($1 = 0.9147 euros)
(Reporting by Paul Sandle; Editing by Sharon Singleton)
LONDON, April 18 (Reuters) - The value and number of
venture capital deals fell in Europe in the first quarter as
inflation and higher interest rates dampened capital deployment
and companies came under pressure to reduce costs and improve
margins, PitchBook said.
The value of VC deals fell 32.1% quarter-over-quarter to
11.8 billion euros ($12.90 billion), the industry analyst said
in its Q1 2023, European Venture Report. The number of deals
fell 19.2%.
Noting that swathes of layoffs were announced in the
quarter, including cuts at major players such as Alphabet,
Amazon and Meta, PitchBook said the macro-economic landscape had
become more challenging for companies seeking financing.
It said an extending runway - or the amount of time between
fundraisings for start-ups and growing companies - would be a
key theme this year, along with further layoffs across mature
venture-capital-funded businesses.
The value of exit deals for European VCs fell 69.6%
quarter-on-quarter to 1.6 billion euros, it said, the lowest
value since Q1 2020.
PitchBook said it expected exit activity to remain quiet for
the next few quarters amid the volatility seen in public markets
in the past 12 months.
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