Vestbee: VC Investments in CEE exceeded €5.9B in 2022

Vestbee published the 'VC Transactions In CEE Report - 2022', revealing that VC investments in the CEE region exceeded €5.9B in total funding across more than 1100 transactions. 

Ewa Chronowska, CEO of Vestbee and General Partner at Next Road Ventures, underlines the incredible progress in VC investments and the number of startups successfully raising funds, resulting in rapid ecosystem development. 'The CEE region has been on a roll in recent years, with record-breaking growth in venture capital investments, attracting numerous VC funds from across Europe and the United States. With early-stage VC funding reaching unprecedented levels, the region is making significant progress'. - underlines Ewa Chronowska. 

Although VC funding reached record levels, the report indicates that 2022 has been a turning point for the startup ecosystem, with a decline in investment growth rates if compared to €5.4B in 2021 and €2.2B in 2020. "The data shows that after record-breaking 2021 when VC investments in CEE doubled, 2022 has been a defining moment for both global and the regional VC landscape, signaling the end of the period of the rapid growth seen in previous years" adds Ewa Chronowska. 

Paweł Maj, Investment Director of Warsaw Equity Group, also confirms deteriorating investor sentiment. "Between Q2 2020 and Q2 2022, global venture capital investment reached a record high, which can be compared only to the dotcom bubble of 1999-2000. The next few years will be a period of return to normality. The trend of declining VC investment, smaller rounds, and lower valuations are expected to continue over the next few years, particularly between 2023 and 2024. "

The impact of these changes can already be seen in the valuations of private startups and tech...