Global Themes

On Globalization & Venture Capital

Its NOT always about the numbers…

In my last post, I mentioned about how overseas VC investments in China have now out-paced US VC investments in UK.

That however was only part of the story…

In one of its March print editions, Red Herring published “Europe’s Next Wave”  which showed that in spite of the rush to China and India, innovation, VC money and deals are thriving in Europe like never before.

The article mentioned the recent research by INSEAD towards creating a “global innovation index” which “identified five European countries in the top 10—the U.K., France, Germany, Switzerland, and the Netherlands—and 11 in the top 20″.

global-innovation-index.gif Anne was quoted in the article as saying, “Deals are getting larger and more like U.S. deals finally, and that is giving European entrepreneurs a better chance of winning in the global game” and Hermann mentioned: “The deal flow is better than I ever dreamed of”.

The numbers bear that out: VC investments in Eurpoean cleantech (alone) topped $1.3 billion (€1 billion) last year and there were altogether “1,633 venture capital deals in Europe worth $8.6 billion (€6.55 billion)” with the UK leading at 515 deals, with an aggregate “value of $2.3 billion (€1.8 billion), making Britain No. 3 three worldwide in terms of the largest number of VC deals with the greatest value. (California was No. 1, Massachusetts No. 2, Israel No. 5, and China No. 19)”…

…and then of course there are all the exciting companies, to name just a few: FON, Rebtel, Netvibes, Truphone and our own, Plastic Logic!

So although I said that its not always about the numebrs, it does look like it actually is…

There’s a cautionary sting in the tail though: “although Europe scored high marks overall in Insead’s innovation index, it falls down in several important areas….overall, (it) has failed to develop enough world-class universities, research institutions, and business schools” and its “academic research establishment is badly in need of reform”…

But things are changing….As fellow blogger Fred noted recently,  “I firmly believe Euro Venture is coming into its own as an attractive asset class on a global basis.  I see it happening every day.”


April 19th, 2007 Posted by | Venture Capital in Europe | no comments

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