Venture capitalinvestorspoured 8.2 billion intoEuropeancompaniesduring the firstquarterof 2020.
It alsothreatens the flow of US capitalintoEuropeantechcompanies.
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Thedata alsoshowsa particularly goodquarterforEuropeanlate-stagecompanies, asventure capitalinvestorspumped 4.8 billion in Q1 the third-highest quarterly figure on record.
Given the currentclimate, its plausible that VCswillnot want to see their flagshipportfoliocompaniesfail.
With this inmind, the report says there could be ashiftin focus.
We expect late-stage investments in existingportfoliocompaniesto takepriorityover early-stage investments in the next year, it reads.
As such, no sector appears completely immune from the pandemic.
As expected, there are also opportunities forstartupsthat can facilitate remotecollaborationand centralize essentialbusinessfunctionsonline.
A spotlight on Europes healthcare ecosystem
The report says thathealthcarestartups received 1.7 billion frominvestorsin Q1 2020.
However, we believehealthcareVC deal activity is expected to slow as recessions bite into economies, reads the report.
Startupsfocusing on technology-integrated solutions to assist withserviceprovision, logistics,efficiency, and drug research have madepopularinvestment strategies.
This represents a cautious exitmarket, which is likely to persist for the next fewquarters.
AcquisitionsofEurope-based startups could attract a less expensive premium than US counterparts.
Whilefundsclosed in Q1 2020 present optimism, new and activefundraisingeffortswillbe suspended in the short term as coronavirus preads acrossEurope.
We expectfundraisinglevels to dip during the rest of 2020 as newly closedfundsreduce in frequency, the report estimates.
Corporate VCs
Elsewhere, corporateventure capitalreached 3.4 billion during Q1 2020.
As we enter the new decade and confront a global recession, the pressure on corporateswillintensify.
Startupsin the home entertainment sector could see opportunities arise aspeopleare advised to spend more time indoors.
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