As always, a fiery piece by Sarah Lacey, looking at how Europe will fare if the markets in the US continue to fall in 2016.
It is true that in Europe we did not have the same frothy pricing at the top end, or the same level of capital chasing too few good deals. It's also true that there is more money in Europe than there has ever been, and we are not reliant on funding from the US. However Europe tends to take its lead from the US, and so we are not insulated from a pull back in the market.
While we expect that companies seeking to raise capital this year may have to work harder or accept lower pricing, we see continued strong interest in European companies from the corporate buyers in the USA. They are willing to pay good prices for the right acquisitions, and we think 2016 is likely still to be a good year for sellers.
Europe didn't get the biggest swings of the mega-deal, unicorn wave, compared to the United States and Asia, but that means it also doesn't have quite so far to fall. It reliably does about $3 billion a quarter. It's dominated by the UK, although there seemed a blip when Germany was catching up pushed up by a few mega-deals. But all three markets have something going for it: Increasingly they aren't nearly as dependent on Silicon Valley money as they used to be. Sure Valley money is coming in and cherry picking the best deals with As, Bs, or Cs and higher prices than locals might pay.