In Friday Link, Investment

Following up my post Local Investment – Virtuous or Vicious Circle? earlier in the week, I found this rather good Go4Venture presentation with a Europe-wide perspective on funding trends:

Funding Outside VCs – What Are The Alternatives?

Go4Venture also do a good monthly bulletin on venture investment in the UK and Europe.  It’s mostly about much larger and later stage transactions than those I am directly involved in, but it’s a great way to get a general sense of what is happening in the market.  You can subscribe and find back issues here:

This month’s edition is boldly entitled European Venture: Crossing the Chasm, and they key conclusion is that European Venture funding is becoming profitable more recent funds achieving respectable IRRs (Internal Rate of Return) of 5% (2005 on) to 10% (2008 on).  This compares with an IRR of 2% for funds from 2000 on – clearly a significant improvement.  The bulletin also links this to a trend towards fewer large later stage transactions – so this success in the VC space probably doesn’t any bearing on investment for early stage companies.  Download the bulletin using the link above for the full story.


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