European Tech Startup Funding to Drop 55% in 2023

Despite the decline, funding rounds are still 18% higher than 2020, with growth expected in the number of early-stage and growth-stage startups.

European tech startup funding is projected to fall to $45 billion this year, down 55% from 2021, when investment volumes surpassed $100 billion for the first time.
The decline is mostly due to later-stage companies delaying fundraising and a slower pace of deployment by investors.
Many startups that raised large sums in 2021/early 2022 to hit their billion-dollar valuation will see their valuations drop below the billion-dollar mark.
Despite the decline, Europe's funding rounds will still be 18% higher compared with 2020, a year before the tech investment boom of 2021.
Atomico expects European early-stage startups to grow to over 66,000 from 41,000 in the next five years, and growth-stage startups to double to 8,000 in the same period.