M&A Year in Review 2023 brochure - Flipbook - Page 66
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Growth Equity and
Venture Capital
Sector performance
Headwinds in the growth equity and venture capital
space, exacerbated by high interest rates and the
market shockwaves from the collapse of Silicon Valley
Bank, suppressed both deal volumes and values in
2023 compared to 2022. In particular, 2023 exit
activity declined across Europe, while in the United
States the number of active investors in the VC market
decreased by a third.
However, there are reasons to be optimistic as
investors prioritize portfolio building, focus on due
diligence and financial metrics, and invest in growth
areas, such as IT hardware, AI, and cleantech.
Hogan Lovells activities
In 2023, our global Venture Capital, Emerging
Company, and Growth Equity team advised strategic
investors, financial investors, and emerging companies
on investments at every stage of the fundraising lifecycle
from Series A through to exit.
Our performance in the growth equity market was
particularly strong, reflecting the rise in popularity
of this attractive asset class, following the technology
sector’s rapid expansion over the last few years. We
advised on numerous investments in high-growth
companies by financial investors, strategics, and nontraditional sources of capital, including sovereign
wealth funds and corporates.
