More importantly buyers – in the form of private equity firms – are starting to line up.
"Growth is clearly harder so we'll see a lot of M&A because PE funds are trying to grow their business and so are looking at early-stage tech businesses."
This increased interest means private equity is set to play an enlarged role in Europe's startup ecosystem.
Rollups, where private equity firms buy up a bunch of small businesses in an industry and consolidate them into a larger company, are also on the acquisition hunt.
Crucially, private equity funds are unlikely to approach deals for companies that are not yet profitable, or unlikely to become so in the short term.
Persons:
Alex Prokofjev, Claire Trachet, It's, Pedro Barros
Organizations:
Business, Venture, Bain, KKR, PE, Target
Locations:
London, Paris