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October 20, 2006
Euro vs US Venturing: Investment Gap Still Huge - Does It Matter?
When it comes to putting money to work, the US outperforms Europe, by a ratio of five to one, but when it comes to getting money back European VCs argue that the same may not be true.
The latest numbers on VC investment from CalibreOne, the trans-Atlantic headhunter for tech companies, show that US VCs continue to invest 5 times the amount of money that Euro VC invest. (see image right)
Luckily for the European venture market the amount of money going into the sector does not necessarily come out at the same ratio, at least since 2003, and as long as you don't count Google.
We are referring to the study conducted by TLcom Capital (a slimmed-down version of which we now have available for readers below - thanks to TLcom). Earlier this year, the venture firm published a report that shows that Europe is delivering some US-style homeruns.
It says that 43 percent of the exits recorded by DowJones VentureSource between 2003 and 1Q2006 that generated 5 times money were European companies, and 51 percent of exits generating 10 times or more multiples were also European
We say it's not time to break out the Bollinger yet - afterall Google is still a huge US venture-success-story - better to grab a can of RedBull and get in gear to make this trend a long term one.
Download - TLcom European Exit Study
Read -CalibreOne Index 3Q06
Posted on October 20, 2006 06:23 AM | Posted to Being European | Venture Capital | Permalink
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