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May 10, 2006
Rushing For The Exit? E&Y Has Some Insights
The alarm:clock euro plowed through a 75 plus page report by Ernst&Young, published last week (you'll note we made a few posts on it to get our time's worth out of the effort). We made a list of the themes for the European market.
Sequoia's slick Info-graphic of its portfolio made the centerfold in the report.
1.VC went global. In case we hadn't noticed, there's a lot of talk about China & India. And if VCs haven't already started investing, or getting portfolio companies to do R&D and S&M (sales & marketing, that is) there, they are at least thinking about it.
2. Exits via IPO in Europe are back. In fact, there's more demand for growth stocks than there are companies selling them. (We still have the feeling that this is a well-kept secret, despite the numbers.)
3. Alternative Energy investing is now in the sights of Pan-European VCs. (They didn't suddenly start worrying about global warming, it is successful IPOs last year, such as Q-Cells, quickening interest.)
4. VCs are open to selling stakes to Private Equity firms as a way of achieving either an exit, or partial exit.
The last point is not just talk. We've noticed it in our coverage of recent transactions. It is not in the E&Y report but some examples of such deals include, Parrot Technologies (navigation s/w), Poliris (online real estate), Datamars (animal tracking RFID), and Carmel Pharma (toxic drug dispensers), sold their shares to late stage venture and private equity investors. The buyers have names like 3i, Invision, and Iris Capital.
Read -Ernst &Young Transition Report May 06
Posted on May 10, 2006 02:07 PM | Posted to Venture Capital | entrepreneurship | Permalink
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