Investment by company stage in 2023 (by type of entity) 500 400 300 200 100 0 International VC Domestic Private VC Domestic Public VC Volume Seed Startup Other early stage Later stage venture Number of Investments 500 400 300 200 100 0 International VC Domestic Private VC Domestic Public VC No. of investments € Millions Venture Capital Notes Funding of start-ups in more advanced stages fell by 72%. In 2023, funding of late stage venture start-ups totaled €426.3M, compared to the record highs in 2021 and 2022 that exceeded €1,500M each year. These funds were distributed across 77 companies (3 less than in 2022, and the same as in 2021). In Other Early Stage, representing Series B rounds in start-ups on track to reach their breakeven point, investment fell by 24% to €306.7M in 185 start-ups (compared to 194 in 2022). Investment in companies in startup stages totaled €129.5M, representing a slight decrease (-23% from 2022), across 112 start-ups compared to 141 in 2022. Lastly, investment in the seed stage fell to €36.4M (-11% compared to 2022) across 50 start-ups, 36 less than in the previous year and a 6-year low. In the coming years, the trend of domestic private and public funds leading the funding of start-ups in their early stages (seed and start-up) is expected to continue, with international funds leading larger rounds associated with more advanced stages, other early stage and late stage. However, to the extent that certain domestic funds are able to grow their funds through the contributions of, among other sources, institutional investors, large corporations or new funds from Europe21, domestic Venture Capital funds will increasingly contribute to start-ups in more advanced stages. Likewise, it is increasingly common for international funds to invest in immature start-ups using traditional funds or acceleration programs. Digital & Consumer and Industry account for nearly two thirds of total investment. In 2023, the Digital and Consumer sector remained the primary recipient of investments, although its representation fell 15 p.p. from the previous year. Specifically, digitization attracted €316.5M (35.2% of total) across 88 companies (-36% from 2022). Fever and Wallapop were two of the most noteworthy investments. This was followed by the Industrial and Other segment, with investments totaling €261.6M (-7% compared to 2022) in 142 companies, including Payload Aerospace and Trucksters. The fall in commodities and energy prices could explain the relatively good performance of this sector. The Information Technology sector contracted the most, with investments totaling €169.7M (-68% from 2022) in 113 companies, including Innovamat and Blue Marble. The most stable sector was Life Sciences: 81 start-ups (10 more than in 2022) raised funds totaling €151.2M in 2023, including Arthex Biotech and Nuage Therapeutics.