On track to raise $45B of capital in 2023 Total capital invested into the European tech ecosystem in 2023 is on track to reach around $45B, more stark- ly highlighting the impact on capital 昀氀ows from the shift in the broader macro landscape compared to 2022. This will be down more than half (55%) from the record year of 2021, when investment volumes surpassed the threshold of $100B for the 昀椀rst time. This also represents a steep drop-off of 38% from 2022’s total of $82B. The decline is not surprising given the dual effect of many later-stage companies delaying fundraising, as well as materially slower deployment pac- ing by investors, which have both served to drive the large decline in the prevalence of outsized, late-stage investment rounds that is the biggest factor in lower amounts of capital invested. While the decline from the peak in 2021 is large, it’s worth highlighting that 2023 is on track to be the third-largest year on record by total capital invested, and is on track to come in at four times the volume seen 10 years ago in 2014. In fact, the resetting of investment levels appears to re昀氀ect a correction to the long-term upwards trajectory, following two outlier years of overheated activity. Total capital invested ($B) in Europe, 2014 to 2023E 125 100 ) B $ ( 75 d e t s e v n i l a t i 50 p a C 25 0 4 5 6 17 8 9 0 1 2 E 1 1 1 0 1 1 2 2 2 3 0 0 0 2 0 0 0 0 0 2 2 2 2 2 2 2 2 2 0 2 Notes: Data is as of 30 September 2023. Full year extrapolated based on year to date data. Sources: Powered by Excludes the following: biotech, secondary transac- tions, debt, lending capital, and grants. | 38