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October 04, 2006
Silicon Valley Bank Says Wheels Up On Euro Ventures
Sand-Hill Road headquartered, SVB (Silicon Valley Bank), put out today a Venture Capital Update highlighting the European market.
So you know where the investment bank is coming from, its business in Europe is mainly providing venture loans for startups, which it has been doing since 2004, and this year it has started to offer a M&A and private placement services for growing tech companies, as well.
There are some nuggets like this:
As a result of the improved exit opportunities, some of the best-performing venture investments are now coming from the European Union. A study of 2,600 venture deals around the globe from the past three years found that, among those that returned more than five times their initial investment, 43 percent took place in Europe, and more than half of all deals that returned 10x or more were European.
We've had a briefing from TLCom Partners, the UK venture firm that carried out the study that SVB refers to in that quote above, and have been wanting to publish some of it. But VentureOne, probably the best source on the market for detailed venture data on a global basis, is very picky about what gets into the public eye and that's why you haven't seen any of it here.
And there is this:
And SVB also highlights some of the top European IPOs of 2005 (Q-Cells raised €313M and now boasts a market value of €2.5B; TradeDoubler, Swedish online ads company raised €138M and has a whopping mkt cap of €4.3B - can that be correct? (Update: we thought that seemed a bit high - we checked and its valuation is actually SEK3.9 B which is about €420M )-- and Interhyp, a German online mortgages firm raised €103M whose current mkt cap is €462.4M)
That's nice for last year, but where are the big fat VC-backed IPOs in 2006? Did the a:c euro miss them?
The report is worth reading by entrepreneurs to get a big picture view of the European VC market and how the institutions around it think.
For a:c readers in the venture market, it's not saying anything you haven't been hearing at industry conferences or telling LPs over the past year: Skype the poster child, IPO markets open to small companies, M&A markets good, Europe outpunching other regions with homeruns and ten X returns - with an eye to how much money is available for investment in Europe, and the entrepreneurial spirit shift.
Read - european venture capital: a new opportunity? (svb)
Posted on October 4, 2006 06:01 AM | Posted to News And Updates | Permalink
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