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Funding dries up for EU startups in times of War

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EU based Startups funding


EU based Startups faces funding difficulty as war ravages Ukarine

Are we looking at the first damaging signs of War on EU based Startups? According to an article researched and published by Crunchbase, it is.

The average EU based Startup funding reported in the last 5 weekdays of February 2022 reveals $250 Million of funding for 33 EU startups/ orgs. Compared to the $2.66 Billion raised by 140 funding rounds in 15 weekdays. To conclude, the average funding per weekday has declined from $177 Million to just $50 Million.

The current war in Europe has affected the funding for startups based in Europe however it also signals that the funding has just been postponed rather than cancelled. To a lot of investors and startups and industry partners, it is not a surprise but a necessary caution to wait and watch at the moment.

The EU based startups and orgs had a bullish run in 2021 where we have witnessed a record number of funding rounds and $45 Billion invested. It will be interesting to see what will happen after the war stops and if investors will show similar confidence that we are so accustomed to.

Also Read: Scalapay- The first Unicorn of Italy