EUROPE’S FIRST INTRODUCTION TO ITS “NEW NORMAL” LEADS TO RECORD HIGH INVESTMENTS
The quarterly survey published by Venionaire Capital reveals record high investments in its “New Normal”.
Overview
High vaccination rates throughout Europe and strict pandemic containment measures led to a sharp drop in new infections across the continent. The consequences are the easing of government-imposed restrictions to travel, tourism and the removal of pandemic-induced shutdowns of stores. The overall positive environment led to the highest “Economic Sentiment Indicator” (ESI) since the year 2000.
The same is reflected in the Venture Sentiment Index, a new record high for the actual sentiment can be observed. The outlook for the next quarter is less optimistic than the actual, though still in the positive area. The latest months were characterized by substantive media coverage of huge investment rounds in European startups.
“At the moment, not a week passes without reading about European startup success stories. The trend in 2021 is clear: funding rounds get bigger, and the number of startups with a valuation exceeding EUR 1bn and are not older than ten years (“unicorns”) is getting higher. The number of funds for early growth phases are also increasing. However, in big rounds, we observe familiar names – mostly from Asia and North America – that make the headlines. Europe still lacks large funds (filled with billions) investing in European start-ups.”
– Berthold Baurek-Karlic, CEO and founder Venionaire Capital.
Overall, the venture sentiment continues to be on the positive side. The outlook for Q3 is also positive but significantly lower than the actual index for Q2 2021. The positivity of the current quarter can be attributed to the relative success of the vaccination efforts, the effective re-opening of the economy and high valuation levels in both private and public markets. However, there is still a general uncertainty surrounding the impact of the delta variant as well as the future development of inflation rates for the future.
Other topics covered in the latest report:
- New sentiment record for Q2 actual and significant increases in investment volumes
- Positive outlook for Q3 2021, uncertainty around new COVID-19 variants, and future restrictions
- FinTech again takes the spotlight. An impressive new approach to sustainability startups