Vestbee: VC Investments in CEE in 3Q 2023 Plateaus At €560M

Vestbee, one of the leading European platforms connecting startups, VC funds, accelerators, and corporates, has just released its VC Funding In CEE Report for 3Q 2023. The quarterly overview reveals that Central and Eastern Europe's financing trends align with those observed across Europe and globally. The previous VC spending downturn, which has plagued much of 2023, has halted in Q3, stabilizing at €560M across 255 rounds, However, the seed and early-stage rounds still receive less funding than in previous years, further reinforcing the notion that the venture markets haven't yet regained their full momentum back.  Investors continue to be cautious, favoring later-stage rounds in key sectors such as AI, Energy, Fintech, Cybersecurity, and SaaS.

Global and European Trends

Globally, total VC investments of Q3 2023 reached billion, marginally improving on the quarter-to-quarter basis, but still declining by 15% in comparison to last year. Having a broader look, in all three quarters of 2023, startups secured 1 billion, which is 41% less than the 1 billion recorded in 2022. In Europe, however, the sentiment is slightly more positive, with a 28% increase in VC spending compared to the previous quarter. The European landscape was particularly characterized by a sustained focus on AI, which continued to be a primary investment sector. It captured .8 billion—11% of the continent's total funding and nearly one-fifth of the global AI funding pool. Moreover, emerging global trends indicate a growing preference among investors for late-stage rounds, which have seen a 10% year-over-year increase, corresponding with a decline in early-stage rounds.

CEE Funding Overview

As Vestbee reports, in Q3...