Crossover investors are withdrawing from VC rounds, leading to falling valuations for scale-ups. However, some hedge funds are now investing more in early stage startups, leading to less significant falls in valuations in this space. Crossover investors have become key players in the VC market and are making a significant impact on the ecosystem. They tend to invest in late-stage companies and their road to IPO can be strongly influenced by crossover investors. Crossover investments are here to stay, but not in the same way as seen in 2021. Crossover investors typically invest at Series C+ and bring strong expertise to bridge towards IPO. They also tend to back companies that go public 2.3x more often, 50% faster, and at a 148% higher valuation. This could be beneficial for Europe's late-stage funding gap and public market underdevelopment. However, activity by some crossover investors has nearly reduced by 70% in 2022.
