Vestbee: VC investments in CEE reached €640M in Q1 2024

Vestbee, one of the leading European platforms for startups, VC funds, accelerators, and corporates, has just released the quarterly overview of the Central and Eastern European funding landscape — VC Funding In CEE Report for Q1 2024. It reveals that visible economic uncertainties lead to a palpable sense of anticipation in Central and Eastern Europe, with funding amounts reverting to levels seen in 2019-2020. In Q1 2024, CEE startups secured over €640 million across 157 rounds. 

The challenges that have plagued the CEE startup landscape in recent quarters persisted. Foreign investors as well as public funds reduced their participation in the region. As a result, VCs are taking a cautious approach, awaiting a catalyst to restore funding to 2021-2022 levels. Notably, enterprise software, AI, fintech, healthcare, energy, SaaS, and cloud were the top sectors attracting attention and capital in Q1 2024.

CEE funding regional highlights

As Vestbee reports, VC financing in Q1 2024 in the CEE closely mirrored the lower levels observed in 2019-2020, stabilizing at €640 million. While the aggregate financing value remained consistent with the previous quarter, the volume of funding rounds plummeted by nearly 40%, dropping from over 250 rounds in Q4 2023 to just 157 rounds. It indicated heightened challenges for CEE companies seeking capital investments.

This decline can be attributed to macroeconomic uncertainties, leading to investors' more cautious and risk-averse approach. The region also witnessed decreased participation from foreign investors and a slowdown in the activity of public funds, especially visible in Poland (the biggest market in CEE). This reflected budgetary constraints alongside the expiration of existing...