VC Survey 2024 (Invest Europe)

Summary

• The exit environment was identified by 21% of respondents as the single most critical challenge facing their venture capital business in 2024.p.6
• Net sentiment regarding the current fundraising environment recorded a figure of -43% in 2024, compared to 4% for 12-month expectations.p.7
• Net sentiment for the current exit environment declined to -65% in 2024, while 12-month expectations stood at -7%.p.8
• Trade sales to strategic buyers accounted for 28% of total portfolio company exits in 2024, while insolvencies and liquidations represented 23%.p.9
• Among trade sales to strategic buyers, 51% were to buyers headquartered within the EU and 49% to buyers outside the EU.p.10
• Net sentiment for the number of new investments was 20% for the current situation and 41% for expectations over the next 12 months.p.13
• Securing financing/liquidity was selected by 42% of surveyed VCs as the primary challenge for their portfolio companies.p.15

Key insights

1. The exit environment was ranked as the top challenge in the venture capital business by 21% of survey respondents in 2024.p.6
2. Fundraising sentiment for the current situation reached a net negative of -43% in 2024.p.7
3. Current exit environment sentiment dropped to -65% net positive in 2024.p.8
4. Trade sales to strategic buyers formed the largest share of portfolio company exits in 2024 at 28%.p.9
5. European strategic buyers accounted for 51% of trade sales, while 49% went to buyers outside the EU.p.10
6. Expectations for new investments over the next 12 months maintained a positive net sentiment of 41%.p.13
7. VCs expect overall portfolio performance to improve over the next 12 months, with net sentiment rising to 40%.p.14
8. Securing financing and liquidity was cited by 42% of respondents as the most important issue for portfolio companies.p.15
9. Women represented 0% of senior investment teams in 35% of surveyed venture capital firms.p.20