Growth Equity Update - July 2023 (Edition 16) (Rothschild & Co)
Summary
- Global venture capital investment in Q2 2023 reached $87.4bn, down 43% yoy compared to $153bn in Q2 2022.p.2
- European venture capital investment stood at $18.3bn in Q2 2023, representing a 40% yoy decline from $30.5bn in Q2 2022.p.2
- US median pre-money valuations fell sharpest at the venture-growth stage, declining 62% YoY to c$126m in Q2 2023.p.3
- French President Macron announced €500m in new funding to support artificial intelligence and create AI champions.p.5
- UK Chancellor Jeremy Hunt unveiled the Mansion House Reforms, aiming to unlock an additional £75bn of financing by 2030.p.6
- Rothschild & Co advised on major transactions including Hidroelectrica's $2bn IPO in Romania and thyssenkrupp nucera AG's €605m carve-out IPO.p.1
Key insights
- Global VC investment levels flattened out across three consecutive quarters, recording $90.7bn in Q4 2022, $86.5bn in Q1 2023, and $87.4bn in Q2 2023.p.2
- European VC fundraising in H1 2023 reached just $8.9bn, down significantly from $28.8bn in FY21 and $28bn in FY22.p.4
- Crypto and web3 startups raised $2.34bn in Q2 2023, marking their fifth consecutive quarter of declining venture funding.p.5
- Under the Mansion House Compact, nine major UK pension providers committed to allocate 5% of default funds from defined contribution pensions to unlisted assets by 2030.p.6
- US headline inflation dropped to 3% in June 2023 from 4% in May, falling steadily from a peak of 9.1% in June 2022.p.9
- The tech-focused NASDAQ 100 index surged 40% in H1 2023, delivering its best six-month performance in history.p.9
- The Refinitiv Venture Capital Index dropped 55% in 2022 and rebounded 36% YTD by mid-July 2023.p.10
Topics and entities
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