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November 24, 2006
Tornado Insider Confirms Venture Capital Concentration
Tornado Insider confirms the trend in the market here that sees larger amounts of capital going into fewer companes that we reported on earlier this quarter. For the past four years about €4B a year has been invested in European and Israel (includes biotech/life science) based companies, says Tornado Insider. This year, the average deal size climbed to €5.8 million - compared to €4.5 million in 2005, €4.3 million in 2004 and €3.8 million in 2003.
To date in 2006 some 706 companies shared a pot of €4.1B, which is down from the 868 companies that shared a similar amount last year.
If we assume that VCs are backing the companies that they believe are winners and are providing them with the cash they need to compete with venture-backed companies from around the globe, then the trend is a positive one.
This is all very well and good. But whenever people talk about money in it sets off a craving for statistics and news about money out. As one of our old editor-in-chiefs used to say, any fool can invest a €100 million, or in this case €4B. If you have exit news and statistics, please send it to over - we will publish it.
Read - Funding The Burn (a:c euro)
Read - The Magic 4 Billion Mark (tornado insider)
Posted on November 24, 2006 10:51 AM | Posted to News And Updates | Permalink
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