Global Themes

On Globalization & Venture Capital

What ails European Venture?

At the TechVenture Asia conference, I picked up these depressing statistics:

The data comes from Cambridge Associates who have also included their data from 2004 to get a sense of perspective:

From Cambridge Associates’ 2004 report: “In aggregate, the historical performance of private equity partnerships in Asia has been disappointing…Asia remains a region of greater potential than of actual opportunities for private equity investors, but that potential is gradually becoming more tangible, less will-o’-the-wisp and merits close attention in light of the regions dynamic growth prospects…”

Mean End-to-End Performance as of 31 March 2004*

One Year

Three Years

Five Years

Ten Years

U S Venture Capital

3.03%

-19.62%

46.36%

38.57%

U S Private Equity

27.91%

3.86%

5.04%

11.06%

European Venture Capital

-4.44%

-19.59%

-3.51%

6.00%

European Private Equity

27.98%

16.68%

14.62%

16.25%

Asian Venture Capital & Private Equity combined

22.96%

-0.14%

1.38%

0.49%

Things have obviously come a long way since then for Asia…here are the updated performance figures for 2006:

Mean End-to-End Performance as of 31 March 2006*

One Year

Three Years

Five Yrs

Ten Years

U S Venture Capital

13.8%

9.9%

-6.5%

39.5%

U S Private Equity

31.8%

27.3%

12.2%

13.4%

European Venture Capital

1.9%

-1.0%

-9.0%

0.8%

European Private Equity

31.5

30.2%

22.3%

20.9%

Asian Venture Capital & Private Equity combined

24.4

20.8

7.0%

4.7%

* Pooled end-to-end mean return net of fees, expenses and carried interest as calculated by Cambridge Associates

Whats dragging European venture down?

November 2nd, 2006 Posted by | Emerging Markets, Europe and Asia, Venture Capital, Venture Capital in Europe, Venture Capital in US | no comments

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