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11/28/2023, 7:47 AM (Source: TeleTrader)
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European tech startups funding down 45% this year, report says

Total capital investment in European tech startups is forecast to drop to $45 billion this year, 45% less than in 2022 and 55% less than in 2021, when the volume of investment topped $100 billion for the first time, venture capital firm Atomico reported on Tuesday.

"Some of the startups who raised large sums in 2021/early 2022 to hit their billion-dollar valuation will see their valuations drop below the billion-dollar mark," one of the partners of Atomico stated, adding that he expects "to see more of this next year as those companies are likely to be running out of runway at this point, and will need to return to market in 2024 or 2025 to survive."

Moreover, according to the report, the slowdown was primarily due to later-stage firms delaying fundraising, as well as a reduced pace of deployment by investors.

Baha Breaking News (BBN) / JG