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Europe's VC market remains stable

Global venture capital investments are proving quite robust despite the Russian attack on Ukraine and the problems with global supply chains, according to the latest edition of a study by the management consultancy KPMG.

In the first three months of this year, 29.7 billion euros (31.7 billion dollars) flowed into European StartupsThis represents an increase of 16 percent compared to the first quarter of 2021. Startups in Germany secured €3.6 billion ($3.8 billion), an increase of 15 percent over the same period. Globally, the KPMG study finds a slight decline in venture capital invested, from €141.9 billion ($151.4 billion) in the first quarter of 2021 to €135.7 billion ($144.8 billion) in the first quarter of 2022. This corresponds to a decrease of 4 percent.

KPMG expert expects continued high investments

Ashkan Kalantary, Head of Venture Services at KPMG, says:

"I expect VC investments in Germany to remain at a high level, particularly in the fintech sector. As companies continue to face bottlenecks and price increases within their supply chains, companies in the logistics sector are also becoming increasingly attractive for VC investments. Furthermore, the combination of geopolitical uncertainty and the pressures of climate change could boost investments in climate protection and alternative energy sources and systems. Cybersecurity will also remain an important topic. However, if volatility persists and the IPO window remains closed, many companies will likely have to rethink their exit plans and strategies. M&A transactions with strategic investors could then become an increasingly viable option."

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