Venture Capital/Analysis/ VCs are still investing, but much more carefully, a new survey shows These are now the median round sizes and valuations for European seed and Series A startups, according to a new survey of VCs By Eleanor Warnock 24 May 2022 Yann Ranchere, partner at VC firm Anthemis Yann Ranchere, partner at VC firm Anthemis \Venture Capital Speedinvest starts €3m fund of funds programme to back emerging managers By Eleanor Warnock 17 February 2023 Venture Capital/Analysis/ VCs are still investing, but much more carefully, a new survey shows These are now the median round sizes and valuations for European seed and Series A startups, according to a new survey of VCs By Eleanor Warnock 24 May 2022 VCs are still investing in Europe, but startup valuations have come down — particularly at the latest stages — according to a new survey of investors in the region. The survey was conducted by Yann Ranchere, partner at fintech investor Anthemis Group, who compiled responses from 34 VCs investing in Europe. It echoes anecdotal evidence from VCs in the market that valuations and investment activity have slowed on the back of a public market downturn following the heady days of 2021. “For all the doom and gloom in public forums, investors haven’t stopped investing and are actively deploying capital,” Ranchere says. “The capital situation across stages has, however, changed in comparison to the previous years, with later-stage [investors] having to manage the drastic repricing in public markets and adverse short-term liquidity outlooks.” Here’s a look at the findings: No VCs have stopped investing — yet Just over half of VCs said that they were still investing, but more selectively. No one said that they had paused investing. A decline in startup valuations is less pronounced in early stages As has been noted by many VCs, valuations have not fallen as much at the earlier stages. That makes sense; the earliest companies are still years away from any sort of exit, as opposed to later-stage companies which might have been thinking about a public listing soon. Ranchere asked investors whether valuations were higher than last year, stable versus last year, or lower versus last year. All respondents said that valuations were lower than last year at Series B+, and more than three-quarters said the same of Series A. Ranchere also asked investors to report on what a typical round looked like and what a more competitive, “outlier” round looked like, and calculated median values for seed and Series A. The results were as follows: Typical seed round median round: €3m median valuation: €13.55m Outlier seed round median round: €5.35m median valuation: €21.5m Typical Series A median round: €9.4m median valuation: €35.4m Outlier Series A median round: €21.8m median valuation: €84.95m Sentiment is worse at later stages And given the fall in valuations at later stages, it makes sense that sentiment was worse at the growth stage too. On a scale of 1-5, 1 being the most negative, 13% of VCs said they were feeling extremely negative about the funding situation for pre-seed and seed-stage companies thinking to raise a Series A, compared to 52% saying the same for Series B+ companies thinking to raise an even larger growth round. Eleanor Warnock is Sifted’s deputy editor and cohost of The Sifted Podcast (listen on Spotify or Apple). She tweets from @misssaxbys Related Articles What oil and diamonds can tell us about the future of VC scout programmes By Nicolas Colin Click here to read more 14 Polish deeptech startups to watch, according to investors By Clara Rodríguez Fernández Click here to read more US VCs are becoming modern-day investment banks. Can Europe compete? By Nicolas Colin Click here to read more N26 alumni have created more startups than those from Wise, Revolut and Klarna By Clara Rodríguez Fernández Click here to read more Most Read 1 \Healthtech Is Daniel Ek’s new body scanner worth the hype? Sifted tried it out 2 \Venture Capital VC diversity needs to change — and white men need to take responsibility 3 \Venture Capital New €3.75bn European Investment Fund pot to back late-stage VCs 4 \Sustainability Counteract closes £15m fund for carbon removal solutions 5 \Mobility Was the $5bn that VCs plugged into escooters worth it?