When venture capital started to decline globally in the first quarter, Europe initially appeared to be an outlier. The region posted strong Q1 numbers and was one of the few markets to see quarterly growth at the end of last year. But since the market peaked in January – at least for now – European funding has in fact fallen faster than in other regions.
The decline of venture capital in Europe was initially buried under its own numbers. Due to a particularly strong financing environment in the region in January, the decline was masked in the Q1 totals. The pace of the decline was remarkable: The region saw $13 billion invested in January, $9.3 billion in February and $8.9 billion in March, according to data from Crunchbase.
The slowdown continued into the second quarter, with funding falling 12.3% from March to $7.8 billion in April, and 16.7% from April to $6.5 billion in May. Based on figures from the first two months of the second quarter, the decline seems likely to continue in June.