According to research firm PitchBook, venture capital funding for technology startups in Europe is down 1.5 billion USD, falling from 4.3 billion USD in the second quarter of 2015 to 2.8 billion USD in the second quarter of this year.
UK startups have received the most funding of all European startups, bringing in 994 million USD over the course of the quarter. Some of the largest deals by London based startups include a 5.27 million USD (4 million GBP) funding round by fashion website Thread, and 4.48 million USD raised by Lost My Name, a children’s book producer.
The uncertainty surrounding Brexit may be at least partly responsible for the decline in investment into European startups. However, as pointed out by Malcom Moss, founding partner at venture capital firm Beringea, “there is still a massive amount of capital looking for a home. In some ways it is a good time to invest as valuations are coming down and we can source a good deal flow.”
Middle Eastern investors are increasingly recognising that it is indeed an opportune time to invest in European tech startups, particularly in subsectors where innovation could benefit the regional tech sector – including mobile applications, e-commerce, fintech, and technology related to construction and heavy machinery.
The value of investing in European tech opportunities are multi-faceted: investors are able to see stable returns in a high-growth, low-risk market, and they are able to diversify their assets away from oil, thereby protecting their capital from any potential further drop in oil prices and revenue derived from the commodities sector.
Naseba is a deal facilitator that has spent over a decade building a network of contacts with investors based around the world – including the Middle East. This network includes family offices, sovereign wealth funds, investment firms, high net worth individuals and members of royalty. Our investor analyst team is currently sourcing technology investment opportunities on behalf of these investors, to support their diversification efforts.
If you are raising capital for your business and would like to know more about how we can help facilitate those requirements, please submit your business case below.
We will review your case and get back to you as soon as possible.
Submit your business case:
Oops! We could not locate your form.
To learn more, contact:
Naseba investor introduction
+971 4 455 7954