Valuations of European tech firms continued to decline in the third quarter, figures out today show, as start-ups battled for survival amid weaker consumer sentiment, scant venture capital investment and slower growth.
The median venture growth deal value declined 17.4% in the three months to end September compared to the same period 2022, according to data from PitchBook, while median valuations slumped by 26.1%. The proportion of ‘down rounds’, in which a firm accepts investment on worse terms than in previous funding rounds, increased to 21.3% from 14.8%. Since the start of the year, scores of tech firms from food delivery business Gousto to fintech giant Revolut have seen their valuations cut by investors.
