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January 22, 2007
Spicy View Of Euro VC From Deutsche Bank
In a report entitled Spice for European Economies published late last year, Deutsche Bank's economists analyze venture capital in the region. The report has a couple of interesting views on the data.
1) Three Europe countries attract VC investment at a greater rate than the US.
... Denmark, Sweden and the UK have a higher share of VC investments – albeit fewer entrepreneurs – in relation to the size of their economies than the US (see Figure).
2) European VC investment is growing at a double digit rate, while the US is growing at less than 1%. Maybe that is not very surprising given the relative youth and recovering nature of the market here, but that there is such a wide gap in the growth rates over the past few years between the two regions was news to us.
European venture capitalists invested around EUR 12.7 bn (0.11% of GDP) in 2005 compared to more than EUR 17.4 bn (0.17% of GDP) in the US. But Europe is catching up: since 2003, venture-capital (VC) investments have increased by 23% per year on average compared to 0.3% in the US.
3) But, there's always a but, despite European VC investments experiencing stronger growth over the last two years, the level of VC investments is still much higher in the US. The DB researchers had to use two different scales in the graphic below to be able to compare the European (the scale on the left) and US level of investment (scale on the right).
Read - Venture capital in Europe- Spice for European economies (db research)
Posted on January 22, 2007 08:12 AM | Posted to Being European | Permalink
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