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The European venture capital market is not dynamic enough to provide an adequate
answer to the needs of many potential future European leading businesses. This is
particularly obvious when one compares the situation of venture capital in Europe to that in
the USA.
The first obvious difference concerns the volume of funds raised or invested in venture
1
capital. Fund raising in 2013 reached € 4 billion in Europe while the amounts in the
USA were about €
2
12.4 billion . As far as investments are concerned, the amounts in Europe reached € 3.4
3
billion in 2013 while they were about € 21.8 billion in the USA .
In terms of trend, the situation is not very good either. Since the financial crisis, new
venture capital investments have declined in Europe from almost € 6 billion in 2007 (€
72.8 billion for private equity investment in general) to about € 3.4 billion (€ 37.7 billion
for the whole private equity investment) in 2013.
The differences between Europe and the USA translate also at micro economic level: the
average size of the venture capital investments made into innovating firms is around €1
4
million in Europe, while it reaches more than €6 million in the USA .
This is becoming a pressing matter as very recent figures from Clipperton European
Innovation Financing Update show an acceleration of venture capital financing for the first
quarters of 2014, underlining the rising demand for venture capital in Europe. However, the
largest rounds of financing are being mostly undertaken by US investors, showing a need for
mobilization in Europe towards late stage venture capital.
European added value:
The venture capital funds targeted by the measure should develop a pan European or multi-
national investment strategy, only likely to give substance to the Europe 2020 strategy.
Such a strategy could also help to attract management teams, as well as non-European
investors.
1 Source : European Venture capital Association (EVCA)
2 Source : National Venture Capital Association (NVCA), USA
3 Source : EVCA, NVCA
4 Source : EVCA, NVCA
-
The European venture capital market is not dynamic enough to provide an adequate
answer to the needs of many potential future European leading businesses. This is
particularly obvious when one compares the situation of venture capital in Europe to that in
the USA.
The first obvious difference concerns the volume of funds raised or invested in venture
1
capital. Fund raising in 2013 reached € 4 billion in Europe while the amounts in the
USA were about €
2
12.4 billion . As far as investments are concerned, the amounts in Europe reached € 3.4
3
billion in 2013 while they were about € 21.8 billion in the USA .
In terms of trend, the situation is not very good either. Since the financial crisis, new
venture capital investments have declined in Europe from almost € 6 billion in 2007 (€
72.8 billion for private equity investment in general) to about € 3.4 billion (€ 37.7 billion
for the whole private equity investment) in 2013.
The differences between Europe and the USA translate also at micro economic level: the
average size of the venture capital investments made into innovating firms is around €1
4
million in Europe, while it reaches more than €6 million in the USA .
This is becoming a pressing matter as very recent figures from Clipperton European
Innovation Financing Update show an acceleration of venture capital financing for the first
quarters of 2014, underlining the rising demand for venture capital in Europe. However, the
largest rounds of financing are being mostly undertaken by US investors, showing a need for
mobilization in Europe towards late stage venture capital.
European added value:
The venture capital funds targeted by the measure should develop a pan European or multi-
national investment strategy, only likely to give substance to the Europe 2020 strategy.
Such a strategy could also help to attract management teams, as well as non-European
investors.
1 Source : European Venture capital Association (EVCA)
2 Source : National Venture Capital Association (NVCA), USA
3 Source : EVCA, NVCA
4 Source : EVCA, NVCA
