1、Page/1 Deutsche Brse Venture NetworkFebruary 2023Deutsche Brse Venture NetworkCH Thoughts on final Title:The IMPACT of crossover investorsPitchBook:How crossover investors are making an impact on the VC ecosystemCrossing Over Into Venture1.Crossover funds are currently withdrawing from VC rounds wit

2、h the consequence that valuations are falling rapidlyWhat is striking is that crossover funds,i.e.hedge funds that make public and private investments usually in the same vehicle,are noticeably withdrawing from VC.As a consequence,valuations for scale-ups are falling sharply as they are aligned with

3、 public market valuations.As crossover investors heal their wounds in the public market,the market could open up for venture capitalists to lead investment in startups,albeit at lower valuations.As certain hedge funds are now investing more in early stage startups instead(such as Tiger Global),valua

4、tions in the early stage space are falling much less significantly.The Impact of Crossover InvestorsBridging Private and Public MarketsCH Notes-Data link for all slides in Notes Deutsche Brse Venture NetworkPage/2 Late-stage companies and their road to IPO can be strongly influenced by crossover inv

5、estors.Crossover investors have risen to be key players in the VC market in recent years.Crossover investments are here to stay but not in the same way as seen in 2021.Crossover investors first investment is at Series C+over 60%of the times,where they bring strong expertise to bridge towards IPO.Cro

6、ssover investors backed companies tend to go public 2.3x more often,50%faster and at 148%higher valuation.This could be beneficial for Europes late stage funding gap and public market underdevelopment.2022 has seen a nearly 70%reduction in activity by some Crossover investors globally,much stronger