DataSnipper, an automation platform for audit and finance professionals, has reached a USD 1 billion valuation following a USD 100 million Series B funding round. The round, which was led by Index Ventures, makes the Amsterdam-based company Europe’s first unicorn of the year —defined by PitchBook’s unicorn companies tracker as a VC-backed company worth USD 1 billion or more. Last year marked Europe’s worst year for unicorn creation in over five years, with only 14 companies crossing the USD 1 billion threshold, according to PitchBook’s unicorn tracker. This is 73% lower than in 2022, which saw 52 new unicorns minted. The lack of new European unicorns is largely due to falling valuations amid a downturn in VC investment, particularly for late-stage startups.

VC-backed businesses with high price tags faced more scrutiny as investors shifted their focus from hypergrowth to profitability. A reduced number of deals and a lack of exits also contributed to the paucity of new European unicorns in 2023.

This year, VC dealmaking is expected to pick up as VCs feel more pressure to deploy the large amounts of dry powder accumulated over the past few years. With an expected increase in deal flow, the number of new European unicorns is also projected to increase. However, it is unlikely to reach the levels seen at the peak in 2021.

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