February by D’Ornano + Co.: exploring the crack in tech valuations, why Samsara is succeeding, and the momentum in European (and French) tech

This is our monthly newsletter dedicated to Tech x Investments.

Let me start by stating that we are following very closely what is happening in Ukraine and I personally feel great sadness and concern for the Ukrainian people. This war is also a major crisis for Europe and we at D’Ornano + Co. hope peace will prevail as soon as possible.

The current situation, combined with rising inflation and many other operational issues which companies are facing, of which the difficulty to attract and retain talented workforces, is impacting tech valuations, at least on public stocks, and we expect the trend to trickle down to private companies in the near term, though it should not affect all tech companies nor all tech verticals.

Still European Tech has experienced a record year in 2021 as explored in the Pitchbook Annual European VC valuations Report, with the entry of non-traditional investors in the market and the massive funding from US firms.

The paint on our recent 2022 predictions for European tech is barely dry, but it’s already time for an update. Seve…