Olya Klueppel, Partner and Head of Credit at GP Bullhound, comments: \u201cEuropean technology companies finally have greater access to debt financing in a variety of structures and from a range of providers. Founders recognise the advantages of debt, including flexibility, speed and lower cost of capital. We believe European tech lending is at an inflection point: all the ingredients for success are there and we anticipate increased opportunities for founders and investors.\u201d<\/p>\n\n\n\n
European credit market maturing<\/strong> – s<\/strong>ustained growth in lending<\/strong><\/p>\n\n\n\n As the region\u2019s startup ecosystem has matured, European founders are raising capital in more diverse ways, with debt increasingly used to finance growth initiatives and acquisitions. 2021 was a breakout year, in which the debt market more than doubled year-on-year and grew impressively, just shy of 4.0x since 2016.<\/p>\n\n\n\n New approach needed \u2013 data driven decisions<\/strong><\/p>\n\n\n\n With 50% of European debt funding rounds involving late-stage businesses, Europe\u2019s mid-market tech companies remain underserved. The availability of debt financing and credit instruments has clearly lagged behind the US. However, this is changing, with the entry of US players and European debt investors raising large funds. <\/p>\n\n\n\n Looking to the future<\/strong><\/p>\n\n\n\n With rising inflation rates, geopolitical volatility and the end of low-interest-rate policies, there will be a greater need for alternative financing sources. For tech companies being built in Europe, debt will become an increasingly attractive option, and we expect the market to grow and mature.<\/p>\n\n\n\n Expert Views<\/strong><\/p>\n\n\n\n Why opt for debt financing? Can debt and equity financing go hand in hand? What\u2019s missing in the debt market today? This report features leading analysis and data compiled by GP Bullhound\u2019s Insights team, as well as key expert views shared by founders and investors from companies such as Lendis, Sumup, Stratio, Verdane, Adara Ventures, HV Capital, One Peak Partners, CapChase and Amentum Partners.<\/p>\n\n\n\n We thank Dealroom.com for their support in collecting investment data, and our interviewees for their time, data and insights.<\/p>\n\n\n\n Enquiries<\/strong> About GP Bullhound<\/strong>
For enquiries, please contact:
Olya Klueppel, Partner, at olya.klueppel@gpbullhound.com<\/a><\/p>\n\n\n\n
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world\u2019s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 12 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com<\/a>.<\/p>\n","protected":false},"featured_media":1328,"template":"","categories":[49,50],"sector":[],"region":[43],"class_list":["post-1327","article","type-article","status-publish","has-post-thumbnail","hentry","category-insights","category-reports","region-global"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/article\/1327"}],"collection":[{"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/types\/article"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/media\/1328"}],"wp:attachment":[{"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/media?parent=1327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/categories?post=1327"},{"taxonomy":"sector","embeddable":true,"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/sector?post=1327"},{"taxonomy":"region","embeddable":true,"href":"https:\/\/www.gpbullhound.com\/wp-json\/wp\/v2\/region?post=1327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}