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UK startup valuations buck European downround trend in ‘year of correction’

Startup valuations downround
Image credit: T. Schneider / Shutterstock.com

Startup valuations in the UK & Ireland bucked a broader downround trend across wider Europe in 2023 amid the “year of correction”.

Last year downrounds – in which a company raises capital at a lower valuation – were widely reported at companies including Gousto, Getir and eToro.

Across Europe, 21.3% of deals were downrounds compared with 14.4% the year prior, according to a report from Pitchbook. It is the highest level since 2014.

Nearly a third of these were in the UK & Ireland. However, the report found that median startup valuations in the UK & Ireland “bucked trends” seen across the wider European market.

Median venture-growth pre-money valuations in the UK & Ireland were up 4.8% year-over-year.

Meanwhile, pre-seed and seed valuations across the UK & Ireland were up 2.5%, while later-stage VC and early-stage VC valuations remained flat or saw a small decline, respectively....