The come-down from the growth days of 2021 has hit European tech arduous in 2022, and introduced with it a funding atmosphere that’s seeing founders elevate from VCs at considerably decrease valuations than they did earlier than. These fundraises, often known as downrounds, are more likely to turn into extra frequent in 2023.
Traders suppose it’s the beginning of a “correction” that’ll play out over the following 12 months or in order firm money reserves start to run dry, and enterprise fundamentals turn into extra vital for startups.
Knowledge exhibits that the worth of a few of the continent’s most profitable personal tech scaleups may have already got plummeted by greater than half within the final 18 months, and a few startups may need misplaced their coveted unicorn standing.
Right here, we listing the downrounds introduced in European tech up to now — and we’ll replace the listing as extra are made public. Assume we’ve missed any? Get in contact at [email protected] and tell us.
Downrounds in European tech
Dataiku
Earlier valuation: $4.6bnNewest valuation: $3.7bnChange: -20%
In December 2022, France-based AI-powered knowledge visualisation platform Dataiku raised a $200m Collection F spherical at a $3.7bn valuation, 20% lower than its August 2021 Collection E valuation of $4.6bn, when it raised $400m.
Oda
Earlier valuation: €1bnNewest valuation: €350mChange: -65%
On-line grocer Oda raised €150m at a post-money valuation of €350m, additionally in December 2022, lower than half of its valuation in 2021. The Norwegian startup additionally misplaced its unicorn standing: in April 2021, it was valued at €750m, and a few months later it hit a valuation of €1bn — taking it above the $1bn wanted to be thought-about a unicorn.
Klarna
Earlier valuation: $45bnNewest valuation: $6.7bnChange: -85%
Swedish purchase now, pay later supplier Klarna drummed up $800m in July 2022 at a valuation of $6.7bn — a vital drop from 2021’s valuation of $46bn. The drop got here after the corporate laid off 10% of its workers in Might — amounting to just about 700 jobs. It later reduce its headcount once more in September, which it mentioned would have an effect on fewer than 100 staff globally.
SumUp
Earlier valuation: focused €20bnNewest valuation: €8bnChange: -60%
London-based funds startup SumUp reportedly deliberate to succeed in a valuation of €20bn — however in June 2022, it raised €590m at an €8bn valuation as an alternative, lower than half of its focused determine.
Sadia Nowshin is an editorial assistant at Sifted. She tweets from @sadianowshin_
