Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published its 2022 Central and Eastern Europe Private Equity Statistics. Coming off a record setting 2021, the research highlights the resilience and innovation at work across the region amid a challenging global and regional environment. It reports that CEE venture capital investment hit a new all-time record and the number of buyouts reached a new peak.
- Venture capital investment achieved its highest ever result at €821 million in 2022, a 13% increase on the previous record of 2021, with 451 companies receiving funding. The figure represents a ten-fold increase on the level of investment just ten years ago. CEE venture capital was the largest segment for fundraising, accounting for 44% of total capital commitments, with the €708 million, raised in line with the five-year average for the region.
- By number of companies, buyouts increased strongly to 64 in total, a record for the region. The absence of larger transactions meant that total private equity and venture capital investment declined from 2021’s record to €2.77 billion, 12% below the five-year average for CEE.
The 19th annual edition of the Central and Eastern Europe Private Equity Statistics, produced in partnership with Gide Loyrette Nouel, also illustrates the growing support of private individuals and family offices who stepped up their commitments to represent 23% of total fundraising in 2022, up from 14% the previous year, an important sign of the development of the region’s investor base and the continued confidence of private investors in CEE’s future. Government agencies continued to play an important role, providing 33% of the funds raised. Total fundraising declined from 2021 levels to €1.62 billion, in-line with most of the previous five years even in the face of the threat, then outbreak, of war in Ukraine.
Bill Watson, Chair of Invest Europe’s Central and Eastern Europe Taskforce, commented:
- “Central and Eastern Europe remains a resilient and dynamic market. Its strong entrepreneurial spirit, deep pool of technical talent, and the ambition of its hard-working people continue to deliver, supported by the catalytic powers of private equity and venture capital investment and expertise. Together, we are innovating and creating the CEE business champions of tomorrow.”
Eric de Montgolfier, CEO of Invest Europe, added:
- “Despite the obvious challenges, the fundamental and unbroken economic drivers of increasing incomes, continued foreign investment, and CEE’s dynamic, internationally integrated marketplace continue to generate investment opportunities. Private equity has a critical role to play in shaping the region’s business and investment environment, and deserves the full attention of institutional investors.”
The region’s strength in high-growth industries at the forefront of innovation and growth was reflected in the companies and sectors receiving investment in 2022. The Information & Communications Technology (ICT) sector represented over half the businesses backed, while the blossoming field of Biotech & Healthcare accounted for over 8% of investment and companies backed. Growth investment into SMEs and fast-growing companies that are the backbone of the region reached €1.23 billion in 2022, making it the largest investment segment.
To read the 2022 Central and Eastern Europe Private Equity Statistics, please click here.