European VCs Are on Pace for Worst Fundraising Year Since 2015
- Venture funds raised €3.4 billion from limited partners in Q1
- Institutional investors and pension funds have pulled back
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Europe’s venture capital firms are on pace for their most meager year of funding since 2015, a worrying sign for technology startups already facing a sharp slowdown in deals and exit opportunities.
Venture funds based in Europe raised €3.4 billion ($3.72 billion) from limited partners during the first quarter of 2023, down from €7.4 billion in same period of 2022, according to new data from research firm PitchBook. Since 2019, these funds had raised investing stockpiles of more than €20 billion annually. But a weaker stock market and rising interest rates caused large institutional investors and pension funds, the largest backers of venture firms, to pull back.