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Despite a shift to economic headwinds, investors injected more than $95 billion into the European tech market in 2022, the second-largest amount ever. To see how deal terms changed, Orrick analysed more than 500 transactions we closed for clients in Europe in 2022 with an aggregate value of more than $12 billion. Here are five things we learned:
Market instability led to a shift towards more investor-friendly terms, including:
Average deal size dropped even as deal volume remained high:
We saw an uptick in the volume, size and value of venture debt transactions with an increased level of competition between lenders.
FinTech continued to be our top sector for investment activity, though FinTechs took the brunt of rising inflation and reduced investment budgets, leading to a 21% drop in investment levels across Europe in 2022.
SaaS & Platforms saw the largest growth in deal volume (x1.5 increase). Investments into Retail & Marketplaces fell by 65% last year after booming in 2021.