CEE VC Funding Nosedives in Q1 - Vestbee

Ecosystem

Vestbee has just released the "VC Funding In CEE Report - 1Q 2023", which shows that investments in the CEE region have dropped by 60% year-on-year, with the total amount invested in the first quarter of 2023 being EUR 600 million compared to EUR 1.6 bln in Q1 2022.

The slowdown extends not only across Europe, but also around the global market and beyond companies at every funding stage, Vestbee notes. In the first quarter of 2023, the total value of VC transactions in the global market reached USD 76 billion with a significant 53% decline compared to the same period in 2022. 

“Regardless of the recent drop in VC investments, we remain optimistic about the resilience and adaptability of the startup ecosystem. The decline observed in CEE mirrors the global trend, brings forth both challenges and opportunities. We view the current market cooldown as a necessary adjustment following an extended period of skyrocketing valuations and funding frenzy. This correction creates a chance for a more balanced and sustainable growth trajectory in startup models. By taking a measured approach and ensuring a focus on long-term value creation, we can foster a healthier investment landscape that encourages genuine innovation, responsible scaling, and meaningful impact.”  underlines Ewa Chronowska, CEO of Vestbee and general partner at Next Road Ventures. 

According to 'VC Funding In CEE Report - 1Q 2023', leading countries in terms of the VC investment volume across the CEE region were Poland, Estonia, Bulgaria, and Romania which had the highest secured amount of funding in Q1 (almost EUR 400 mln). Among the most popular sectors were: e-commerce, gaming, fintech, AI, analytics, and SaaS.

There is still a significant amount of available funds in the market, estimated to be over USD 580 bln globally but it remains to be seen how VC investors will react to the current market conditions in the upcoming quarters, Vestbee says.

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