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January 29, 2006
Europe VC tech investment plunges in 4Q05
Where are Europe’s VCs? Are they on the road trying to sell vintage 1999 portfolio firms? One thing they are not doing is announcing new investments. VC activity plunged in the fourth quarter of 2005 and so far 2006 has been very slow, particularly in early stage tech investement.
The latest figures for Q4 2005 published in the Calibre One Index (a Trans-Atlantic tech sector executive search firm that always gets the quarterly VC investment figures out before the commercial data providers, such as Dow Jones VentureOne) show a sharp drop in activity. Only $441M was invested in technology in Q4 2005, the lowest quarterly figure in the past two years, even lower than the previous low of $522M in Q4 2004.
The figure contrasts sharply with the previous quarter, which was a 2-year high at $748M in tech investment deployed. "It was a weak end to what was a phenomenal year for tech investment in Europe," said Calibre One.
Did the VCs blow all their cash in the third quarter? Are they drowning their sorrows at being the least favored alt asset class (according to Coller Capital’s latest survey of limited partners) in the bars of HabboHotel? We will try to find the answer.
Read – Calibre One Index
Read – Coller Capital Barometer
Posted on January 29, 2006 08:03 AM | Posted to Venture Capital | Permalink
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