A SHARP DROP IN THE INDEX ACTUAL AND THE OUTLOOK FOR Q3
The Index Actual decreased for the second quarter in a row but was higher than the Q2 outlook which was measured in Q1. The index actual for Q3 decreased for the third quarter in a row. The outlook for Q3 is in negative territory.
At the beginning of this year, it became clear that the post-pandemic recovery trend would likely not continue due to sudden and drastic changes in the geopolitical landscape. The consequences of the global COVID-19 pandemic receded into the background. Meanwhile, the war in Ukraine, the consequent sanctions on Russia and supply shortages have shaken up Europe’s economic, political and economic scene. There is outstanding pressure on Europe in terms of demand, inflation, and energy security which has given another push to sustainability startups (Dealroom, 2022). The price of Brent and the global price benchmark for crude oils experienced an unprecedented increase of 40%, reaching the USD 100 price per barrel which was long forgotten since 2013 (WorldBank, 2022).
The index (actual) itself decreased in Q1 2022 to 5.74 points from 6.78 (–15.38%) which is a drastic decrease close to the neutral sentiment line (at 5 points). Investment volume in Q1 2022 was 20.18% higher than in Q4 2021 as well as 32.67% higher than in Q1 2021. Data shows increased demand of institutional investors increasing their exposure to private equity and venture capital (Goldman Sachs, 2022). Valuations are likely to remain at current levels, or slightly lower. Inflation would favor an increase, but the crisis and (listed) market multiples would suggest for lower levels.
Topics covered in the latest report:
- INVASION OF UKRAINE, SANCTIONS ON RUSSIA, AND THE IMPACT ON EUROPEAN VENTURE CAPITAL
- A SHARP DROP IN THE INDEX ACTUAL AND THE OUTLOOK FOR Q2. STRONG START OF 2022 FOR FRANCE
- PRESSING NEED FOR AN ENERGY TRANSITION IN EUROPE: A PATHWAY FOR GREEN ENERGY STARTUPS
- FINTECH REMAINS THE NUMBER ONE SECTOR IN EUROPE. VISIBLE SIGNS OF DECELERATION