(Bloomberg) — Overseas investment into Europe’s latter-stage technology startups dropped to a four-year low, according to a report from venture capital firm Atomico.
That drawback came primarily from major investment funds, such as Tiger Global, Coatue Management and SoftBank Group Corp.’s Vision Fund, which in recent years plowed record amounts into startups across the globe. In 2021, these “crossover” funds — firms that invest in public and private companies — made 82 new investments in Europe, according to the report. So far this year, they’ve made four.
“You’ve seen a dramatic pullback, almost a grinding to a halt of their activity,” said Tom Wehmeier, an Atomico partner who helped prepare the report released Tuesday.
Venture capital has dried up everywhere for more established startups, held down by rising interest rates and sluggish public markets. The report estimates that Europe is on pace for $45 billion in tech investing in 2023, a “steep drop” from the $82 billion injected in 2022.
That decline is particularly noticeable for growth-stage companies. North American funds accounted for a quarter of the total invested into these European startups so far in 2023, down from 39% in 2021, according to the report. (The report excluded biotech startups, debt investment and secondary transactions.)
Still, the report found that Europe forms more new startups than in the US and hosts more “highly skilled artificial intelligence professionals.” While exit opportunities for European startups are “muted,” the report estimates that more companies are ready for acquisitions or public offerings in 2024 than in the last five years combined.
Many of those companies will not have the foreign capital that flowed so freely a few years ago. “It emphasizes the need for Europe to build its own base of dedicated and stable capital,” Wehmeier said. “There’s clearly a gigantic opportunity here.”
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
