Late-stage capital is having a ‘cascading result’ on European VC activity

Capping off our dig into the early-stage equity capital market, we’re taking a glimpse at Europe today. Previously, The Exchange tucked into the United States’ early-stage market for start-up capital, revealing start-ups using plentiful seed capital to get more done prior to raising a Series A, while others were using team, pedigree and market size to accelerate their very first lettered raise.

For both accomplices, it appeared that a rapid-fire Series B might be in the offing, with VCs looking to get capital into winners early.

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The Latin American equity capital market for early-stage startups had a variety of comparable hallmarks. That shouldn’t have actually been surprising. According to Seth Pierrepont, a partner at London-based Accel, “fundraising dynamics are now no longer U.S.- or European-specific — — they’re global.”Fundraising over videoconferencing services like Zoom has done more than make geographical distances less impactful within nations — — it’s even made nationwide borders and even oceans less significant.

Is the European start-up market comparable to what we’ve seen in Latin America and the United States — — a cognate for the North American venture capital scene, offered its outsized worldwide weight by round count and amount invested?

Largely, yes, a trend that seems shocking costs and the skill wars. Today, we’re taking a last take a look at the early-stage equity capital market, this time through a European lens, with a help from a few investors from the continent.

An influx of late-stage capital

Broadly, early-stage equity capital rounds in Europe are taking place “earlier and are larger in size,” according to Draper Esprit’s Vinoth Jayakumar, a financier based in London. The correlate of larger rounds being raised while startups are more youthful is assessment growth, according to Jayakumar, who said that rates are increasing “because bigger rounds are extremely dilutive to creators if done at regular — — or in this case too low — — evaluations.”

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.