Yahoo Finance

Venture capital activity in the DACH region has slowed significantly this year as the downturn puts more pressure on dealmaking.

As of mid-September, 1,229 deals worth a total €14.3 billion (roughly $14.1 billion) had been completed in the region—which includes Germany, Austria, Switzerland and Liechtenstein—according to PitchBook data. Both volume and value are unlikely to match the pace set in 2021, which recorded 1,823 rounds totaling €19.8 billion.

Germany, the region's largest VC hub, has seen its deal flow decline the most, with deal count and value at 63.8% and 69% of last year's totals, respectively, as of mid-September. In 2021, Germany surpassed France to become Europe's second-largest VC ecosystem in terms of capital raised, but has since slid back into third place.

Switzerland on the other hand is nearing 2021's numbers with €3.1 billion invested across 346 deals. At its current pace, capital raised will likely exceed last year.

Here's a look at some of the key trends that are shaping the DACH region, showing how dealmaking, exit activity and fundraising have been impacted by this year's difficult environment.   Featured image by Naruedom Yaempongsa/Shutterstock

This article originally appeared on PitchBook News