Venture Capital Market in Europe
Europe
There are several companies that now have household names. Among them are Apple, Google and Facebook. These companies were all funded at one stage or another through venture capital firms. Effi Enterprises is a VC firm which was founded by Efraim Landa for the purpose of helping emerging businesses obtain funding for growth. That is what a VC firm does; they invest large amounts of money in exchange for company equity. Usually they target companies which have a very good track record and are staying on track to experience large growth. Usually venture capital firms plan on a company growing from its inception to going public with its shares in about 10 years or less. There are always a lot of risk factors involved, but venture capital firms are designed to help fund a business so that it can grow.
European VC – the History
In general, most experts think that the VC industry in Europe has been a major failure. Many of the venture capital firms that were first seen as the “big names” have all dissipated. A lot of the large contributors of the ‘90s have been purchased by other companies, moved on to buyouts, lost their investor teams or have simply disappeared from the market. There are still a few of the larger VC firms that fund early stage investments instead of providing capital funding. The entire world of entrepreneurship has changed drastically over the last decade and a half; but some of the bigger investment firms like Seatwave, Monitise, Spotify and Shazam are all hanging in there. But of course these firms have valuations that are greater than 100m EU. There are also a couple of businesses that venture capital firms have already existed from which have become huge successes; Skype and Autonomy for example. But there are also a couple of huge companies that were founded by entrepreneurs like Alex Cheatle and Glen Manchester. These were able to experience great success without the aid of any venture capitalists. The European market is a varied place and the venture capitalist is still trying to find their place.
Europe and the Present state of Venture Capital
Even though the European and American VC industry have some similar principles, when they are compared, Europe remains far behind the successes the US has experienced. One of the most promising areas in the European VC industry is that they focus predominantly on technology. They already have a couple of areas that are doing very well. For instance, Mittelstand is located in Germany and they have the lead in worldwide market shares for their precision engineered products. The Swiss are also leaps ahead in areas which pertain to chemical and food technology. But even with these market leaders, as a whole the European market lags behind. The French are emerging as a large contributor to venture capital funding in Europe. It may very well be up to them to convince the rest of the world that the European market is a good investment. A large part of the industry ends up relying on public funds for existence. However, the government is beginning to discover that entrepreneurship and innovation are keys to being able to successfully close the equity gap in the future.
European Future in VC
Although many still feel like the European market is well below par, many experts feel that it is likely to experience large growth rates soon. One reason for this is that with the decrease of the VC industry in Europe, returns should begin to rebound. With the low valuations over the last few years, more venture capital firms in the US are considering investing. One of the more promising signs is that there has been an increase in the number of startups and entrepreneurs. The government is also beginning to understand how employment rates are affected by startups and are implementing policies that will encourage entrepreneurship and create more investment opportunities for venture capital firms.
European VC – the History
In general, most experts think that the VC industry in Europe has been a major failure. Many of the venture capital firms that were first seen as the “big names” have all dissipated. A lot of the large contributors of the ‘90s have been purchased by other companies, moved on to buyouts, lost their investor teams or have simply disappeared from the market. There are still a few of the larger VC firms that fund early stage investments instead of providing capital funding. The entire world of entrepreneurship has changed drastically over the last decade and a half; but some of the bigger investment firms like Seatwave, Monitise, Spotify and Shazam are all hanging in there. But of course these firms have valuations that are greater than 100m EU. There are also a couple of businesses that venture capital firms have already existed from which have become huge successes; Skype and Autonomy for example. But there are also a couple of huge companies that were founded by entrepreneurs like Alex Cheatle and Glen Manchester. These were able to experience great success without the aid of any venture capitalists. The European market is a varied place and the venture capitalist is still trying to find their place.
Europe and the Present state of Venture Capital
Even though the European and American VC industry have some similar principles, when they are compared, Europe remains far behind the successes the US has experienced. One of the most promising areas in the European VC industry is that they focus predominantly on technology. They already have a couple of areas that are doing very well. For instance, Mittelstand is located in Germany and they have the lead in worldwide market shares for their precision engineered products. The Swiss are also leaps ahead in areas which pertain to chemical and food technology. But even with these market leaders, as a whole the European market lags behind. The French are emerging as a large contributor to venture capital funding in Europe. It may very well be up to them to convince the rest of the world that the European market is a good investment. A large part of the industry ends up relying on public funds for existence. However, the government is beginning to discover that entrepreneurship and innovation are keys to being able to successfully close the equity gap in the future.
European Future in VC
Although many still feel like the European market is well below par, many experts feel that it is likely to experience large growth rates soon. One reason for this is that with the decrease of the VC industry in Europe, returns should begin to rebound. With the low valuations over the last few years, more venture capital firms in the US are considering investing. One of the more promising signs is that there has been an increase in the number of startups and entrepreneurs. The government is also beginning to understand how employment rates are affected by startups and are implementing policies that will encourage entrepreneurship and create more investment opportunities for venture capital firms.