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The private markets want to stay private. As a core differentiator from the public space, it’s arguably the private markets’ biggest asset. 
As such, data security matters. How their data is shared, and with whom, matters to companies throughout their different stages of growth and fundraising. Commercial sensitivities and intellectual property, especially for high growth, innovative businesses are crucial to preserve and protect. 
It matters for investors and venture capital fund managers, who want to maintain the privacy of their portfolios and the integrity of their networks. 
And it matters to investment banks and advisers, for whom managing deal flow and introducing investor networks to new opportunities is a lifeblood. This is where transactions are forged; trust and security are paramount. 
This is why the balance of transparency and control to build trust is the founding principle of Floww. Our private market infrastructure enables the different types of participants (including companies, intermediaries, investors or clusters) of the platform keep their own private ecosystem, with complete control over how visible the data is within that ecosystem. 
<h2>Data sharing through the Floww data room</h2>
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-5042" src="https://wp.floww.io//wp-content/uploads/2024/03/Dynamic-Data-Room-800x517.png" alt="Floww data room technology" width="800" height="517" srcset="https://wp.floww.io//wp-content/uploads/2024/03/Dynamic-Data-Room-800x517.png 800w, https://wp.floww.io//wp-content/uploads/2024/03/Dynamic-Data-Room-1600x1035.png 1600w, https://wp.floww.io//wp-content/uploads/2024/03/Dynamic-Data-Room-768x497.png 768w, https://wp.floww.io//wp-content/uploads/2024/03/Dynamic-Data-Room-1536x994.png 1536w, https://wp.floww.io//wp-content/uploads/2024/03/Dynamic-Data-Room.png 1869w" sizes="(max-width: 800px) 100vw, 800px" />
Our patented Walled Garden Technology is our data sharing architecture that underpins Floww’s innovative data room technology, which allows you to securely manage and present your story, create individual data rooms for different groups of investors, share KPIs and updates, and monitor engagement.
More broadly, everyone on the platform, whether they’re providing funding or seeking it, has absolute, granular control over the data they share, who they share it with – whether that’s an investor they’ve invited to use Floww, or a founder or funding partner they wish to engage with – and have the ability to permit or revoke those permissions whenever they like. This might include sharing of performance updates, investor decks, company KPIs and legal documents. 
<h2>Financial analyst support </h2>
This seamless data processing engine then combines with human ingenuity. This is in stark contrast to typical private company and transactions data gathering we see in the market (which typically involves scraping the internet for info). Floww’s team of qualified financial analysts review the information provided to ensure quality and consistency across datasets. This is done in close collaboration with the company as may be needed. Embedded NDAs and warranties provide all users with confidence and control, allowing them to add to their data and continue sharing within their private ecosystem in real time. 
This is how we maintain the core value of the private markets, while at the same time solving its fundamental issue of fragmentation – a challenge of the private markets as opposed to, say, a stock exchange is that they can become a vast marketplace of disconnected players. 
<h2>Governance structure </h2>
Our unique product and tech solution is further underpinned by our governance structure which ensures appropriate separate of duties around transactions, investor access and fund management solutions. The regulatory and compliance guardrails we have in place ensure that our clients can have complete trust that data cannot be shared or exchanged without proper permissions and only for the intended use. 
<h2>Powering innovation </h2>
The private markets can be fraught with unnecessary friction – they’re typically a slow, administration-heavy, fragmented ecosystem of multiple players. As a result, entrepreneurs with great ideas and innovation are starved of capital. Our patented data technology, combined with human ingenuity and governance structure, is the cornerstone of a strategy based around trust, transparency, and control. The net result of all this is that we’re able to provide the infrastructure that a capital market needs to operate in a frictionless manner, powering innovation while keeping the private space private.

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<h3>Foreward title</h3>
There’s nothing like riding a bull. But neither is there anything quite like being thrown off it. Something many VCs would soon come to learn for the first time. Coming off an unprecedented long bull-run ignited by the X and extended artificially by covid stimulus and the ensuing zero interest environment, it seemed like early stage startup investors truly had grown wings and taken flight. Founders and operators became angel investors and angel investors became VCs. VCs became growth investors and growth investors became VCs. There was enough money to go round and everything was up and to the right. Even to the extent that some started arguing that there was little to no derisking happening from round to round because the follow-on was inevitable.
But nothing lasts forever and surely not a good bull run. The many newcomers to the industry would soon learn that venture isn’t just about memes, parties and mark ups. And the giants that had ventured down or up market in pursuit of AUM or alpha would soon fall back to their core strategies.
Many pages have been written by others about what caused the tech reset and how it affected startups and companies. Less has been written about how it affected VCs on the fundraising trail and LPs seeking to allocate in a market of tumult. Through and post the tech reset, we’ve interviewed 200+ VCs on the eu.vc podcast and screened XXX funds at Isomer Capital. In this report, we uncover some of our core learnings from the period, focusing on those that pertain to raising a venture fund.
We hope you’ll enjoy reading it, watching the interviews and joining in the ensuing discussion online. But more than anything, we hope it’ll help you on your road to raising your next fund. The European venture ecosystem is only getting started, we’ve got so much more to come.
Keep hustling, keep pushing frontiers. Keep going.

Foreword

<h1>The state of European VC fundraising 
2024</h1>
<h3>Navigating through the tech reset</h3>

Welcome to a very different report experience. Drawing from our past 300+ podcast episodes, combined with the most recent market information and Isomer Capital’s vaulted data treasures, we aim to reveal the effects of the tech reset on the European fundraising market. We also explore how top venture capitalists throughout Europe have adapted their strategies, tactics, and operational guides in response.
Packed with informative graphs, captivating stories, and video interviews, this report offers a completely new and immersive experience. It&#8217;s designed for an engaging learning journey that you&#8217;ll not only browse through but actually spend real time with.
To set the tone, we&#8217;ve collected the core outtakes from our virtual launch event as the preamble for the report.
Hit play and enjoy the journey through the report.

<h3>Authors&#8217; note</h3>
There’s nothing like riding a bull. But neither is there anything quite like being thrown off it. Something many VCs (venture capitalists) would soon come to learn for the first time. Coming off an unprecedented bull-run extended artificially by covid stimulus and the ensuing zero interest environment, it seemed like early stage startup investors truly had grown wings and taken flight. Founders and operators became angel investors and angel investors became VCs. VCs became growth investors and going full circle, growth investors became VCs. There was enough money to go round and everything was up and to the right. Even to the extent that some started arguing that there was little to no derisking happening from round to round as follow-ons were inevitable.
But nothing lasts forever and surely not a good bull run.
Many newcomers to the industry would soon learn that venture isn’t just about memes, parties and mark-ups. And some firms that had ventured up or down market in pursuit of AUM (assets under management) or alpha would soon fall back to their core strategies.

Many pages have been written about what caused the tech reset and how it affected startups and companies. Less has been written about how it affected VCs on the fundraising trail and LPs (limited partners) seeking to allocate in a market of tumult. Through and post the tech reset, we’ve interviewed 300+ VCs on the <a href="http://eu.vc" target="_blank" rel="noopener">eu.vc</a> podcast and screened thousands of funds as part of our investing activities. In this report, we uncover some of our core learnings from the period, focusing on those that pertain to raising venture funds in the current market.

I was in Bulgaria with my family, on the beach sunbathing. And I was approached by someone who wanted to invest in my fund. Not once, but twice, completely independently of each other! It was crazy.

We hope you’ll enjoy reading it, watching the interviews and joining in the ensuing discussion online. But more than anything, we hope it’ll help you on your road to raising your next fund. The European venture ecosystem is only getting started, we’ve got so much more to come.
Keep hustling, keep pushing frontiers. Keep going.

Andreas Munk Holm

andreas-munk-holm

EUVC

David Cruz e Silva

david-cruz-e-silva

Freddie Macpherson

freddie-macpherson

Freddie Macpherson,

Isomer Capital

<h3>About our partners Floww</h3>
<div>

<div class="scriptor-paragraph">
Floww has built financial infrastructure to serve and empower scaling companies, funds, innovation centres and financial institutions. Its technology-driven solutions with the appropriate regulatory rails are reshaping the private markets landscape.
For the VC user, Floww offers multiple solutions all on one platform so that managing inbound activity, deal process, portfolio and fund monitoring are more streamlined. In addition, Floww&#8217;s fund administration &#8211; from investment management agreement creation to custody services, regulatory reporting, LP communication, and payment processing. They streamline the entire administrative workflow, offering one comprehensive solution.
A pivotal feature is the introduction of Floww Certificates, globally tradable instruments designed to enhance liquidity and facilitate secondary market transactions. This unlocks opportunities for the development of new fund structures, creating a more attractive asset class with flexible lock-up periods.
Together with strategic partner LSEG, Floww is committed to catalysing transformative change within the industry.
</div>

</div>

Venture is desperate to modernise. Fund structures have barely changed in half a century and the private markets need quicker turnover to increase investment, so investors aren’t locked in for long periods. If you solve that equation, you benefit everyone – the VCs, the investors, the innovators that are ready to grow. I do believe we’re at a critical point right now, a point where the technology is there to remove the hurdles that funds typically face in execution and deployment, and to create the liquidity the private markets need to encourage huge swathes of investment.

<a href="/reports/state-of-european-vc-fundraising-report-2024/foreword-new/">Foreword →</a>

<a href="/reports/state-of-european-vc-fundraising-report-2024/executive-summary/">Executive summary →</a>

Chapter 01 
<a href="/reports/state-of-european-vc-fundraising-report-2024/gp-lp-dynamics/">GP/LP dynamics →</a>

Chapter 02 
<a href="/reports/state-of-european-vc-fundraising-report-2024/fundraising-dynamics/">Fundraising dynamics →</a>

Chapter 03 
<a href="/reports/state-of-european-vc-fundraising-report-2024/raising-fund-i-iii/">Raising Fund I – III →</a>

Chapter 04 
<a href="/reports/state-of-european-vc-fundraising-report-2024/fundraising-across-europes-tech-valleys/">Fundraising across Europe →</a>

Chapter 05 
<a href="/reports/state-of-european-vc-fundraising-report-2024/the-lp-perspective-on-raising-vc-funds-in-the-current-market/">The LP perspective →</a>

Chapter 06 
<a href="/reports/state-of-european-vc-fundraising-report-2024/key-advice-to-emerging-managers-raising-across-europe/">Insights for emerging managers →</a>

<a href="/reports/state-of-european-vc-fundraising-report-2024/conclusions-contributions/">Contributions →</a>

The state of European VC fundraising 2024

Navigating through the tech reset

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The state of European VC fundraising
2024