Sun. Dec 4th, 2022

By Marie Mannes

Nov 9 (Reuters) – EQT’s enterprise capital fund stated on Wednesday it had raised 1.1 billion euros ($1.1 billion) because it seeks to extend investments in tech startups subsequent yr while firm valuations are low resulting from weak markets and hovering inflation.

The Swedish fund, which initially invested in Finnish start-up Wolt earlier than it was purchased by U.S. supply agency DoorDash, stated it deliberate on utilizing the cash to assist early-stage tech startups in Europe and North America.

Ted Persson, companion in EQT Ventures, instructed Reuters the fund had slowed its funding tempo early within the yr however deliberate to ramp it up in 2023.

He stated the fund would be capable to make investments much more in firms as valuations have been at the moment low resulting from market situations, including there may be a rise in startups from some enterprising workers laid off from their jobs.

On account of the unsure geopolitical scenario coupled with hovering inflation and vitality prices, enterprise capital funding has slowed down since its increase in 2021.

Along with diminished funding, high-flying startups have seen billions shaved off their valuations, together with Swedish Klarna which in July was pressured to lift capital in a spherical that minimize its valuation by over 80%. ($1 = 0.9925 euros) (Reporting by Marie Mannes, Enhancing by Emelia Sithole-Matarise)

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