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Europe Tech Startups Doubled Debt Financing in Fundraising Shift

  • EU and UK tech firms raised €30.5 billion from debt last year
  • Silicon Valley Bank was a big provider of venture debt—funding
European technology startups are exposed to the turmoil following the collapse of Silicon Valley Bank.

European technology startups are exposed to the turmoil following the collapse of Silicon Valley Bank.

Photographer: Lauren Justice/Bloomberg
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European technology startups nearly doubled the amount of debt they took on last year, leaving them increasingly dependent on financing that may prove harder to come by in the aftermath of Silicon Valley Bank’s collapse.

Private tech companies in Europe took out €30.5 billion ($32.7 billion) in debt last year, up from €15.9 billion in 2021, after the global tech slump made raising new equity more difficult, according to a report from investment bank GP Bullhound LLP published Tuesday. That was nearly one-third of the funding they raised in the period, the report said.