European B2B cloud and SaaS startups are showing resilience to the venture funding drought, with nearly 50% of the surveyed companies raising follow-on funding in the last 12 months, per Notion Capital's recent report.
However, the macroeconomic volatility impacted these startups, resulting in a valuation plunge, especially in late-stage startups.
- Series D median valuations for cloud companies decreased from $1.6B in Q1 2022 to $1.1B by Q3.
- While valuations for Series A startups also fell from $64.9M to $54.3M in the same time period, their drop was not as dramatic as for late-stage firms.
- A report by Cloud Judgement showed that median valuations per run rate fell from a 22x multiple to 5x.
- Global VCs were able to raise their dry powder reserves from $428B in 2021 to $536B in 2022, per WSJ and Preqin data compiled by Notion Capital.
