Fundraising activity for first-time venture funds in Europe has slowed significantly amid the economic downturn and macro headwinds.

In H1 2022, a total of 26 first-time vehicles were closed in Europe with an aggregate value of €1.6 billion (about $1.63 billion), PitchBook data shows. This amount represents less than a third of the total raised and 34% of the fund count from last year.
 
European VC fundraising has had a particularly rocky start this year in terms of fund count, which at its current pace would register the lowest annual total since 2013, according to our Q2 2022 European Venture Report. Total capital raised across all venture funds is on track to be largely in line with last year's figures as fund sizes trend upward, but this is not the case for first-time vehicles. In 2022, that category has seen its median size drop 52% year-over-year to €26.5 million.

Although first-time fundraising appeared poised to bounce back earlier this year, the current volatility and potential global recession have created a tougher fundraising environment, particularly for emerging managers who lack a track record or existing relationships with LPs.

Despite the slowdown, some firms have still managed to raise significant amounts of capital for their inaugural funds. In March, Stellantis launched its corporate venture arm with an initial €300 million vehicle. Foodtech investor Synthesis Capital closed its debut fund on over $300 million in May.

Related read: Europe's 2022 venture capital trends in five charts

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This article originally appeared on PitchBook News