In a positive sign for the too slow to develop European venture capital market, fewer startups there are on pace to raise more money. This means that more substantial companies capable of competing on a global scale are being formed. Historically, investors have been too risk averse to put millions into a company so instead put a small amount into many companies. It has led to subpar returns in most cases.
Through the third quarter of this year, venture capitalists have completed 631 rounds of funding for 2.9 million euros, according to the VentureOne and Ernst & Young report released today. The Europenas are on track to invest the most capital into startups since 2002.
Gil Forer, global director of Ernst & Young's venture capital advisory group, said, “With the current positive capital markets environment in Europe and the region’s entrepreneurially focused stock exchanges providing access to public capital as a further financing tool for these private companies, investors are increasingly starting off their companies with bigger sums to give them the impetus to reach these markets. For example, the year-to-date median sizes of seed- and first-round deals are at record-setting annual levels—€650,000 and €2.4 million, respectively.”
For more on European venture capital fundraising, see:
Alarm:Clock Euro
The Deal
Tags: europe, vc, venture+capital
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