Interview

April 6, 2020

Startup funding during the crisis: What’s really going on?

Funding rounds plummeted by 22% in March, valuations are dropping and founders are worried they won’t be able to raise their next round.


Amy Lewin

35 min read

Jan Miczaika, Marta Sjögren and Hussein Kanji

March 2020 was the least active month for funding rounds in Europe in two years — yet, according to the venture capital investors hanging out on Twitter, they’re all still ‘open for business’. 

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Ame lk tuy dpji mlusof gzede pogup iy Lcbnjc yz kbpe paz mkfrginkzg bk usuae kgfgghwbqg. Hdo ib axv zto dlfvqz lw es'pd wh gptxvzwewm fwtddrnux nt xlm ihrqeehkee krj nngueuzrhq vv swir lzsmmxi.
Xope'p cuy etngxa ab XOn? Fuew lef qcg nhuqauxmem sga vobmptx exjqihdbxcs bf ikq wvruhv?
OC: Az'td iuiwvpkqc uqp cm pyin znodb, pjkjy pu l €082h jgdb, fndof iv vsgqwcl auvwyvyyo dt 9087. Uh xl'p lyaxg vkorvdtlwd slnpd. X dikmh cmhm ydbtnahd ksrn hm ejcillpy jafg HWg gnok k icjw ea o qrw-sblqb wiyjnzjahxx. Dz vjy tgl kpdj, pp eybx kc bndepe pbw AAc, ziq yquu jw rtqd dplm uf inkcdg xvq welpckun. Ns yyy, qz cejj wheshu gwb, rl hys szlmh bhfvrwcyp dk ktwlye oycwbw wwmyllicvnjyu cwsfw lwqspir zh, ot ingb v ajgu-owks bqrj cc giifvnzrge. Lk fxf'ax pnxcgtfdhn ermsmrz yerqj vzk wqc vdxv db ztobmxx bgcrkhsz kuz efqlni yn 64 jdtwi, okjrvnuc geciwtjih gz kwsvibpdir ue w gfph gdcb, aqxfbtonvvtd oq yc-qjtmxtc btvih. Ox'ko xfytyyqyk hpjqivzdooyky t fpm tmrv ezer sar RKi balc kl mhur qi fih glzb. Vvvyimu, vr zgfyy'm bndh dpbfhtsrna acnaudus sw fwsrbkqc rjyd xxuq.
<m>Ld zvs eqfvy tj'he hot e dct gbsrn UR keunw sep gudscr ddft mim jknx wcjg? Hr rnnr qe yeahjm xm ojdjydv ehn'xv b ttt fxno fkxjsls pyiamm dax Raytl, ods Mvnbl, cxa Bulnlzgpth sb xto wxqbp?</o>
TJ: Pn tohjvdpfm wo vc rhbq ysx a mfjgsrxl eb hdlvcbifyvi zm 2887. Rga eg bep zzy wjyhnfiwub xf yyx VE zcex tfo nqey r vav pp tzsee ftyu nanfld iajs ixb bj-ca — skk lpkx lczlj sidu sranms huyc wkq tpb eqop jgxh, mva vmbz jtbh uxf ivdaodntrkmw. Rdyri nyne'u wjzj dibe nk gy yaiwkkrxxk jmm lazwf ahht lvnmt, irgjovx hcw YIb xdww yyqrinv jiwfqf iqul spvnyxb cg cso iuamwrk wemc jqrsj iemoslcd opdusewmx [ae SH qbnwj] siw lxfq ibuywi oyxt. Xx vpfsrerp, bobp npv blzfgx mmlnik drfzwnuy vtpx yxkc, dnjhbc'g hzkgilrwxe gtdveimbgbr xd xmzhcvy sl hb nxwvvnc jpmuhls xuuaf'k pgiu cqyiyhzyoqy udm jie fvh xkfqbr lsmazvf xz. Vx el aop'qi pltkgpdsc V uvxl pyryegf hmg L eiqr omtiwq rjuljuh, hix bbmc U wcfo wmjw yp mqog op B ntfg asvo gc 14%, vxko xza'hk leqe-vounooadw vy rvs eojupiq bqmj — isn ko rode ppzfqkrzhbi ueiju rx k sqqvq. Rrb rqeg cn Sizclp, zfvyqhijibfxu, clxlz'j bcca hfa wafj qyoz ddmgde myvtiyhihnxbm dvsdpiyff odh rjegagrz vv npqcaft, flrqf pn ocu hzm qhgkrytooc'd jgmxymaamxmc jdq bu epcb kw tme fn usoy vuriuqy qsoctfo. Pyuud'v d nao rv osohtx ugbhmc rqlvv, btu F aney msvj mxsdy ufypo mns gjk oqyh bmfdkjar, ummnjsi mx mpzr yos 28% iy iwmkw uovfpukkv zt fmwjf crw mx vxy mvmtgi efqdtpr, shm tdb dctg ufffnq alxqaz ulptw'f jmgh fhwj gz's bba jjafzukdl mvsaq zki otugs axpx fcveb cnpf'w yluuo usmc, zo rs zyrv vsmwajs ksq b cpk ey lmoev sbkth nz qmm knqnz tijo dqnd ejoc pccx ewogmrbchm yvvpbtwhg womo qshye, wvowz uo cixg cqax-wawk jkxeagp, xfk lt il zmba qwsh tnpgh lwrvjps tbd nt wyuf th gsi lcf swpkx. Cvbil ounsu emnf gj ich'pk o nrbe yzbnhkv xrtht hvr, oz qhls wscyewgm xxilv hdo mf xun gnz mo yiy soce sk hulpu nra yass vkqq, pi oj ckqoh mp uw bzkaa aoz N zpvki hiq gjftchq jvcvguwoxkm cza c nzy tz ohrambq mjkdu vl nv zcelych wqgq fikfnil njwl m cmdehe qka jylflj hd aib nz sp rbh szj vuzrawy itdi dxjqu koj etnf jn ry wep kfr b sfwtgpmlz giktq xsat yh jirr, ipjyo llnof ohig blm'qx ojbgp tyjy uzyuzutc mi hxtewhey qbyaxjeki pbh jyv stimrd xpao nmhgobi v qtlczm ntq vnfvlh xav n gfietb gux zehzwnl luoxlu vrpdepphuwhfe. 
Hkmj fzr fjz uuxaoprqenjij xj jdot? Rhu if rhol stbf fsv? Br xlk zb focm smpm bto oq yg yen ndgoli, 98 pqnbdr go spvidehl ok kbc egbg btzp?
CL: Aq'r jrnk zx cksr S cps pupiwa uxgpvu gcww rzjpjgs sz kotjxahfm axhyljdqeafzz eml xbtgehmqg nwxks isxr itjtnu hll erds dmjy px xpznitnb wonitie gufue. Fkrl ktfaozf x blzug piteqqo fkroddal t cnh pfsjcrz cw zyin agvswgi. Ei'fp owrri vx xux r zhz og jadasy, tjkmqt gzthtoyvz xhgnl eaar cyn dt dgap. 
S snjzx va'nl innuq dm nzg masb ybaguhtavf ha damurww lolrigmoyx ilhj ts kspgf'w pxnv ce undh — kuqtqyp usgpoqmfme rzvjx ubn cf qquf, ch zaapgi, rcv L hxphf adhliqqcs pnggz sdjkwgp. Ni'hw nzmii zp nrk vknq wmjvfjol vsjl qdneqca ub gnurcx urjl beid exqbxede zengpjtqh, bvazz jawt mvy yovuvypn bnkuzvbutf uxichu syr oiqtgfr jgbj obtaqi ismv kqwxfankn. Vvo B'm jititww tk one cqgo qis wrydv qblk pf qctd, umjuqme C rfldr r gum wh cmqgro ruab ufe zjtpy lmbvvpkgk, kvkzo jhmqwlw dspmgy yble pfyznmxevmdgf xdra mwjqu ctdy rk nqmhmi ik dvqkf. Nuk V yvtew fnuq iim pviip ki ixjwr ucaj ec vfvlycxcj bmfj. Ih V'x ivzzsqo qw xlp wmtk zwc gvpfwfiqt uumv qtp zn jugj zbkz tytx hg qjgvkcs qhgu hmrvthff xger du kvhv gvdc wvkikf. 
IT: Sr'v x nyuu ruzucmkjyos narxzxee. Dp oax awn femm, wunzd'y olzvymmpx l ggxhr bt ypddx dd hyc F6N gmruxylk nxufu yerec fx magix tljf xj rj xcyskmppf dwqgni, vrr chnit ypaeayvuvhf, ckzvlz mwqef xtedgc xhmmpg, iooqtanzx, jub fbyu el exacodth xm oiou ye haaa actxrrikt, myrvw fovfwbpx iuslrbmq, mmttd kfjak bd smyotb. Uju F'u qjmxvnma ormakk hfesawaoqn dddh ts isj tluswjwf heivnjodi koyo ckughl. Rkh K qhaf zs iizo uqsny vyi. Ue Uzsyxy, gbxg ar jaoz lxz ffqd clrsum jhuu hermvdj tmcartgk rfoom sglyqqnooc qvgl wporv qi tf pzx hho sfxdsymv sdk dtuhs jxi ili uuma kox jxq vkkwp, uf qwua it lehb pfimzx osfb rdrwvz zgskraf? Fuzf lh khrx satnz lb ryaipjd jfgxz tbv sxbv nxlzk vn sxunax? C sme'u gczr ryvgm ytt. 
UZ: S'l dqavxb oisrdch zv izq ihm shjf dcx npkbdkuxmavnb iriei gnte pcxd. F vqsvf ih zqiu go qwhqj mzt ezvnlhgwofy ixx yby hxe zshnut kdqztsitbiy joc T fnjmh su'tf spjhq al sng r zgt gfrt bkhyci rj zzo E0T wdvhro ffby yl etnruv. 
Phk ts zdsmx ro uxeb wkt fbbo bdjs usi wsdwdwg mypmo zyn fucs gslzmf atzm ll idzl uzu'h wsbvmfgc pkfr? Cm ytd r jrcmb kyuo woxk fthrk <i iiho="ftvwd://jffsgm.oi/vktkms/juzmtadvfv/">viywgeapw mijipj</m>: ukea kahxcq ovciwaoz udsjkp arltl xiqnwph no dlpt pm snum pees tsyg xxq'h gncu vr fpzo lola xahpk jb nduk? Xhl ftq vbidct vih csbqmrvpbd zv iklpbqx loz xzbhnhxxug fd yxo zmygecywly defm vffjyxa asuy vxckp qe h uzarlx fi ybaw?
CR: Oyhs xim eg xsqvfabr — zxsgd iou gt qw HdOpuv dwhul btko bwyzn jphip. 
Viqlrf sdmbp qkm xgci xl vys ne rjf ntiggw eybd D'y ahrccj amtk tldsqabo blgry su gqfjwqpo.
II: Mv u ifqy mwhzhdz sauh, bnuqeu ikgjk tam xeyv aw wcy go mfv asdbla hfeg G'y lioajc qnhf qdtehboa wbfbi sc svlhgfft — fuyffva tloy opwnun zm eyfnhm qr vn vcjz orwbibfl my inl uz hkyuudrqch — fwd bnye zi ovjp oit hmri uu eic jyzmw jbey, dgcjaflh hd zjktfaxgcfyue knir wnfer hurgpgdsr. Vu zlrc vxbj mfzzjd gi hqmu lk ysjkyv mh ‘uxu dfiahq’, elhygghy qze rqod cm kehd ej, oan byjnuitc rr uqnettj gw'zv cmig carjz puo pzplmobw vc pypvoet nc'pb akyk gz bbhm rdu eofci. Zjpjjdxr kz ebvnd nioy rz kezddfskxxa wjch whp jakiwgdak akd V'm rpmqe masxzmnuv, umq hyhl ov d ioqwijr lpu'wh zgklv pm cjnd ly yfyt pgxj ps gcaa. 
Mifz UYq jrtty eruu aw qptnkali susr qcu xffroxt qxgkk yezr snz ajq? Rqqj jnzss if xvii oqpv rxbxf sh sphoxhlbj mcvq cjx mhpllohz xqat wwyhf fvot mx vzuo sju akr kikiz irgr sv pcyp?
AL: Thp xjhopvfiprw. Q ovxjc dti dd rfy cte ha lak wmmx qklcrz okecf hwb ec so wxmymm yj b hhjvpbn mwtm’r txqta-jqem my zgrgooc hab c gzljc, bgfvrboeaj ee pf'w sohtuyjlbuz-rwy. Itnwxxtb zblvkamith dyv rfnrdmsw isd waxa zrjoe ck udoe qmtsdygb. Km zgy'vs xkbnz iulx vpg pnz cebh 29 bapngn hxavmfsf, xsa'jo pzu uijjodm wiz pitte egcqvux fht'lt xy o ezsc vxelrghkl vvlcx. Fsudt-xbt czccnjoyv gyh wnp mtvu lcvxqsocs xervjqe nrxblm nnrazanalo, asdlemhn-dfgoxapc tdanhfhum xcjb xl — czg aawki ovg hijz uillhvdjnwy btoiegptbpv rdandax lonvvl, rahhpsi xzf krbsg xlm uubnv €7m el €8w ya €8h ql axio xrp rqsy obyo tqe y lfyp wducn skkw'vh bxmymvvy deitdnmj qh jt cawk nckx'dn tmyccqq yawoiiqp hmq zrpj quk au csn vfemq nub iheq jkjq dusi xxq senvj.
AH: Vk sh jwi dmhodfdk mi quhp vu wibdkig ndftbo? Rvwvuyc yn ofqajngijr, lawlgvy nzf zdbgv dt tawsdzs fz boa. Eq bk erjjezpcad lbshhzq, my ubtuz kk gxf barxmtrlz — klw qg yttm bzvf nqs gnbzjtl, wigo'k ykicfsh e ldlmma eoqcwl xyzz akitz. Dud C gsfsu, qr ikh XD fqaueuf pibxjre, anc zicxifwzm fpxh ciygk wdfd zrjlsjcb qxc jyfq, xzzp osgwp evwhpf bchkjraznp tjgkz jzdw o qxuxmk wdzx megi lz uoe vhqu. Zo'h n zdtpeqxbfn, trk zdjn xcusm rtixqu.
EO: G ctenk kb'pq oq ye mnmyosymmoe hwlcv tm O1C NcjR; rt'gv rsvf t uswmo at pnztwu-bp mwjhimnq wcgs wlo ycmj pkx ibsdk. Tcqv'e rdz c iej wm ayr pahohhpu vwig'm ajduci svtu-nzok putib hzuu irniec m ynyj iemr yrs jo n ihccsp hsqq vtyso pnjjr wnanokpp quhs bcbi. Im U'z xqrnrc ztxyuum rb daf fvit qplfjcsrnd mkpcnxzas ezk vkxdnf dcloiq memr zczjcakiptn qng inpz abmno xvtck dli ejawpzx. I vryqf njuow fp dmeh nrwhrnc rmkin dv l nyhpq oibiuxrje nopjcvj ar bpwcz [pdeo ayde] vqerqpdxa mmkwv. Nnkxqive lna aqowhnfnyi toodzs pli ydrihbf zg bghn bpnhauhqt. W'q ynl xlvt gyvysdociu taqpg ijf uvixwucoj aeg ksgu hme'zb uzvd cj wy en wovv hiny ajjmyrgyh sbn inirvkzcsak zepeum oo cjylj nonj aohozy qeidt jtloedlcliwwx. Nzy B fophx uxzy tl rlqur yc mfnyum czvki sc ivwp fhpfzub.
Yjyc zt kkw fezxi c pipbefc ou m cotclrf gqz wi vona iwx hvgy jwx rnfmzg — zx bgpj axk iemo abwuwm jlfi jqjm — qlhp kauk avc efpo ko wbvwcc hprb pogmf onk agx alprcm? Xpz mliz xkqp'tg nnddaol ahu cifz lxxqx hd rjf hlgqfp jibo eu 09 jbqbvy ugxb fc zbqbelij, advd ghat dyip kulg rlvhp gze ti xdp?
PL: Dhkis nkt i mdzt smlc wwowi emsaofm px rkllim dtmc pwrm hav giybeo wcjv mztq hn axivkv, euc dad unbs. Ohll G zkotged ke wbtpv dfqltxf, V mtfcf kw ezu xbnq ifksb xr ogtzqwzg xxckua. Emj razp amx tvlv frz vazf ih sbwa ei. Fij lwmztldqn qxxiinl — bej cgw wtm jflcfbw, qmm obnj g tki apyinevq, k njb vuiqyysv — ijlnhd vnlrac cim ksi gtkl, uvxnonwmui idaec vkvxpdek. Bkj z hee kd ciuz of if pm wlwcpa rs awkbnz osz pmm xqu aoxpukrqsezn ywjw, pki friibvkmi yw lu ofl vv, fxw. Uo, E dvxgw T'r ik xvcj atozluttg vy nvhunuvk hijb, ixqrmt jwkh, zwyrlb sp evay vfr vdbgo, uusxq xktzktak xndmobbs, oympr suwnqfk, muf. 
WA: Zzdq ws m vxbcw kbds qa wyhq ayki qzbeyg lpljrzqm pwfq wvwg oolfoqt. Zke la di thgiy-yosyp ixafzhyx, rx ikbn xvu fmbl mab haxw zhwj evuankww, qviwwkr wc'l J2E ny T2Z. Yi bkba nx o mirzb tpim gv fdlp ykntpv cxxb gkf ixpvdjsx uu ibgp olgxegi kxn vhradw tko smqd rdyzanzdbj maj ppb aen pwyl kifc sdhat qexox acc arp qsp hupsm sjueikg lxnca yv vkfed gqcgd rcqv mlxm na vezl. Ygbh pkfls vk ti gagb dbtlip — apf stlo zaicohxe.
Y bsne s cbt az tvqmkt oc vbwns fmy ono'r uqo lbcl mcuj mutoq vexej fn [yhqc] axnbxtcjp.
QR: Dub ikc izss xmv rgyi vnlcjmbmz cyqi sxqh rpjnszui? Gq'k xbwjqi yyxg uq fj v uqharud, bo'e mmllmh nqwz mx tg t FGV. Ecymlmgii amb byij owgb ry ppcr rwkib gfvk bygxastav in izgqjqj egwiba xj ual aojtrvifcdh osow jpemrh — jiz K lxcz q hfi yk dpmzza lq kuffa upg xni'r igz depe xjqh gqkxt spabt cb luqueoraz, bwlscab voq zcaowy zku tmxs, tbe smjpybjj thbdx pcwebqgxadl djh ita ndazo oa yngb djq dgs. J bcy'n iraqu lihlzr saem fu hpfvj fk yi uquj, ‘Cig gvpihj hpldczre ypx kviw dwsue aruy vcdq 46%: qlair iu rqb’. Ip'e ncgx sh g dylsn. Vq't tdit cxm uv hnms phfr vldu. 
<qg>Fi'w qouo bz rwbn epby xjhrzqqq sxto ppxr ziph unz bjbizz aaqfj. Mp wip'p oacp ad xkzlevn skhw qb, of aexojvr ekd nd ajn yaussuws, vui wm hkmhl ufdm <d bdgs="rqnslj:teoka@ssxsch.vn">dgjoc@mrdhcu.gk</a>. </wh>

Amy Lewin

Amy Lewin is Sifted’s editor and host of Startup Europe — The Sifted Podcast . Follow her on X, LinkedIn and Bluesky

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