Debt 昀椀nancing volume mirrors equity While the levels of venture debt funding have come down in absolute terms from the highs of 2021 and 2022, the decline in volumes is broadly aligned with overall equity investment volume trends in Europe over the same period. In absolute terms, total debt 昀椀nancing raised by European tech companies is projected to reach around $1.5B in 2023, equating to around 3.4% of the total capital invested as equity over the same period. This marks a fall the peak of $4.4B in debt 昀椀nancing raised in 2021, but remains broadly in line with amounts raised in 2019 or 2020. Debt financing ($B) and share of total VC investments (%) by year, 2019 to 2023 Debt ($B) % of total VC investments 6 5 % 4 o f t o t ) a l B V $ C ( t 3 i b n e v e D s t m e n t 2 s 1 0 2019 2020 2021 2022 2023E All Dealroom.co data excludes Israel and the following: biotech, secondary transac- Sources: tions, debt, lending capital, and grants. Data as of 30 September 2023. | 84