More than any other venture capital firm in Europe, Index Ventures is legitemizing the local industry. I wrote the same thing six years ago but it remains as true today as it was then. The reality remains that European venture capital still lacks credibility and the partners at Index are doing as much as anyone to create it.
There are other strong firms such as Sofinnova and Amadeus Capital and newer ones such as Wellington Partners that are also doing a good job, but Index is the closest thing to a top-tier Silicon Valley type firm based in Europe.
Limited partners recognize that, and reaffirmed their commitment to the Swiss firm with a $460 million fund (350 million euros). It comes only two years after the firm closed on 300 million euros. Despite achieving no exits from that fund, limited partners were wowed by the homerun returns achieved by its investment from the previous 300 million euro fund in Skype, which eBay bought in 2005 for $2.6 billion.
Returning limited partners such as Horsley Bridge Partners, HarbourVest Partners and Partners Group must also be impressed with the value being created by its still private portfolio companies. Among the highlights are:
MySQL - open source database
BetFair - online betting community valued at more than $500 million
Last.fm - online music community and recommendation engine
Spotrunner - television ad creation and insertion tool
NetVibes - personalized online homepages
These companies range from the mature BetFair to the new Last.fm. But, they are all leaders in the emerging segments they operate in and most venture investors would kill to get shares in these companies. Index is increasing its exposure to life sciences and Eastern Europe with the new funds.
And as long as it continues to be the go-to firm for both local entrepreneurs in Europe and American entrepreneurs looking to expand their investor base to Europe, Index will thrive.
For more on Index Ventures' newest fund, see:
The Deal
Saul Klein
Vecosys
Tags: index+ventures, vc, venture+capital
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