From Silicon Valley To Europe: Is The U.S. Series A Crunch Affecting European Startups?

Q: Is Silicon Valley’s Series A crunch causing a chill in Europe? A: Yes and no. A lot has been written about the Series A crunch/palpable chill in Silicon Valley that’s making founders pull their cardigans a little closer. Most recently a report by a venture capital analysis firm CB Insights suggests there hasn’t actually been a reduction in the amount of money available, but rather too much seed funding causing too much demand for the same amount of cash at the Series A level. Whichever way you cut it, a lot of U.S. seed-funded startups looking to upgrade their backing to Series A level are going to be going away with an empty begging bowl in the future. But what about beyond the Valley? Does the funding situation in the U.S. have an impact on startup funding in Europe? As the old adage goes, if the U.S. sneezes, the rest of the world catches a cold. So if Silicon Valley has a Series A chill, does that make the funding situation a little less forgiving for Europe’s seed-funded ...

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