SlideShare a Scribd company logo
1 of 37
Download to read offline
“Venture Capital in Europe - The
Highs and Lows and Why Now?”
Charlotte, NC - Aug 23 2013
angelfund.vc - confidential
‣ Internet Entrepreneur since 1998 -
launched first business at age of 17
‣ Lecturer at various European universities
about entrepreneurship
‣ Former Advisor to Deutsche Telekom AG
‣ VC fund Partner and Business Angel
History of
Venture Capital
‘94 amazon
‘95 yahoo!’83 AOL
‘94 netscape
80‘s and 90’s delivered primarily great results for US VCs only
‘84 cisco
predominant over-performing investments
predominant under-performing investments
2012: also 4,4b in 1074 deals
The “old model” of venture (driven by investment bankers) is stagnating
Eight large studies have examined the
IRR of Angel & Early-stage Investments
Year
 Study
 Total Inv.
 Exited Inv.
 IRR
2009 UK
 Wiltbank: “Siding with the
Angels“
1.080
 406
 25%
2009 US
 Band of Angels Website
 200
 Unknown
 18%
2009 US
 Sohl: “The Angel Investor
Market in 2008“
Unknown
 Unknown
 22%
2009 US
 DeGenarro & Dwyer:
“Expected returns to Angel
investors“
603
 434
 33%
2008 US
 Sohl: “The Angel Investor
Market in 2007“
Unknown
 Unknown
 28%
2007 US
 Wiltbank: “Returns to Angel
Investor in Groups“
3.097
 1.137
 30%
2007 US
 Villalobos & Payne:“Startup
Pre-Money Valuation“
117
 117
 24%
2002 UK
 Mason & Harrison: “The rates
of return from informal
venture capital investments“
372
 128
 37%
The model works in the US (IRRs of 25+%)
8 studies examined the IRR of angel & early-stage Investments
Eight large studies have examined the
IRR of Angel & Early-stage Investments
Year
 Study
 Total Inv.
 Exited Inv.
 IRR
2009 UK
 Wiltbank: “Siding with the
Angels“
1.080
 406
 25%
2009 US
 Band of Angels Website
 200
 Unknown
 18%
2009 US
 Sohl: “The Angel Investor
Market in 2008“
Unknown
 Unknown
 22%
2009 US
 DeGenarro & Dwyer:
“Expected returns to Angel
investors“
603
 434
 33%
2008 US
 Sohl: “The Angel Investor
Market in 2007“
Unknown
 Unknown
 28%
2007 US
 Wiltbank: “Returns to Angel
Investor in Groups“
3.097
 1.137
 30%
2007 US
 Villalobos & Payne:“Startup
Pre-Money Valuation“
117
 117
 24%
2002 UK
 Mason & Harrison: “The rates
of return from informal
venture capital investments“
372
 128
 37%
And startups are responsible for 30% of all US jobs in the last 10 years
Calculations by Venture Economics indicate that
from the beginning of the VC industry in Europe
until 2007, the average European VC fund had an
annual return of minus 4 percent versus 16
percent for the average U. S. VC fund
Many Venture Funds ended 3-6 years ago!
Lerner, op. cit., p. 123.
Early VC vintages had terrible performance in Europe due to dot-com bubble
Crisis delayed fundraising and decreased LPs confidence for “2nd generation” funds
By contrast, the story for European venture funds
was one of struggle: European fund-raising further
declined to US$3 billion (amount closed)
for 41 funds, due to Europe’s sovereign debt crisis
and its muted medium-term growth potential.
In 2000, European Venture Funds raised US$60b+!
source: European Private Equity & VC Association
To boost confidence: EIF is supporting the Venture Capital industry
EIF commitments:
about EUR 3 bn in VC
up to 50% commitments
can be committed by EIF
(no management fee but
carried interest)
50 % 50 %
Limited Partners EIF
EUROPEAN INVESTMENT FUND
Venture business is independent from IPOs; 90% of exits are M&A transactions
the main exit route for VC-backed companies is
acquisitions (M&A), representing more than 90%
of all exits.
Furthermore, VC firms are also selling companies
to private equity firms as a third path to liquidity.
Pace of adoption is accelerating, impact of recessions is minimal
Overcoming the “bad memories” is the key issue in Europe
‣ Huge job-creation factor
‣ IPO independent
‣ Industry is backed by European Investment Fund
‣ Recession “proofed”
‣ IRRs of 25+%
BUT:
‣ Bad experiences from 1st generations of VC funds
‣ Current model is stagnating
Snapshot:
Germany
‣ has a hand full independent venture funds € >100m+
‣ and only a few professional venture funds € <100m
‣ while the US has, in each category, >200! VCs active
Germany, an economy that is 25% of US GDP....
25% of US GDP, <10 (Germany) vs. >200 (US) Venture Funds €>100m
*European Venture Capital: Myths and Facts: British Private Equity & Venture Capital Association 2011
Equal success rates of European and US IPO exits
there is no difference in the success rates of
European and US deals from the same vintage
year with respect to IPO exits
in a economical environment that is not exactly underperforming....
Exits in the same order of
magnitude, need only half the
amount of Venture Capital in
Europe vs. US
Capital efficiency in the US is
not increasing - talent is more
expensive - hence lower
returns, higher prices.
Souece: Dow Jones VentureSource, 2008 exchange rates
... and in a time where Europe is today where the US was in 1997-2001
The average in US from 1997-2001 was $41m per company
at $417m average exit=> just like in Europe right now!
Software/Internet companies dominate the European VC market
European Venture Capital Financings by Industry
In 2011, the software sector again
accounted for the largest portion of
the European venture capital market,
representing >20% of all financings.
Amount raised, by region, 2011 (US$m)*
*Global venture capital insights and trends report 2011 by Ernst & Young
SiliconValley
NewEngland
SoCal
NYMetro
Beijing
UK
Shanghai
Potomac
France
Canada
Germany
Israel
Switzerland
Bangalore
Germany: head-to-head with Canada and Israel while NY companies raised 4,5x more
As one prominent fund of funds manager with
investments in more than 50 VC funds across Europe
put it to us: The UK is far ahead of the rest. Holland
and Scandinavian countries are next. There is not so
much VC activity in Germany and Switzerland. France
has some, but its law requiring pension funds to
invest a certain percent in VC firms is controversial
and perhaps counter-productive. There is very little
VC activity in Italy, Spain and Portugal.
Ivey Busines Journal March/April 2011
UKs GDP is 1/3 lower then Germany but VC market is 2x of Germany
Germany has a unique model where, in a different
twist to the hugely successful VC-funded start-up
ecosystem of Silicon Valley, the industry is not as
much reliant on a handful of blockbusters or even a
closely networked startup environment, but rather one
where a high number of regionally diversified quality
opportunities correspond to increasing levels of
entrepreneurial activity.
- Andreas Ritter, ARICO Private Investments Advisory and former
Head of Private Equity Duke University's endowment
“
Germanys Mittelstand is also a great Venture Capital opportunity
Building global hubs (London/Berlin) organically
Silicon Valley took 40+ years to build
New York 15+ years
London 10+ years
As a international hub, Berlin is around for 5+years
More then 2.000 new startups since 2008!
Berlin alone: 2.000 new startups in 5 years!
To compare: 1.000 companies receive
Series A funding in silicon valley a year!
But it’s still very small compared to Silicon Valley!
Players of global magnitude emerged
But, noteworthy, some global category leaders with international investors
Berlin’sNetworkEffectWillMakeItAGlobalStartup Center
: Matt Cohler is a General Partner at Benchmark and was the
lead investor in Asana, Instagram and Quora among others.
Creators. Any creative ecosystem needs a meaningful group of creators to germinate new work. A fashion ecosystem, for example, needs designers; a film
ecosystem needs writers. In a technology startup ecosystem, these people are the founders and entrepreneurs.
Builders. These are the skilled creative people who shape vision into reality. In a technology ecosystem they’re people like engineers and organizational leaders.
The right kind of capital. Different types of ecosystems need different types (and amounts) of capital to fuel growth. In a tech startup ecosystem the right kind of
capital is venture capital: simple equity funding that’s aligned with creators and builders, takes a long-term view, and sometimes works shoulder-to-shoulder with the
creators and builders themselves.
Rule of law. I mean a developed and reliable legal system, along with a culture and society that values that system. This one may seem obvious, but it’s still not a
given in many parts of the world.
The center stage. To attract the best, most talented, most capable and most committed people, a creative ecosystem needs to command the local center stage.
Finance holds the center stage in London, while in Hollywood it’s entertainment and it’s fashion in Milan. Each of these creative ecosystems has its own unique
culture, expertise, and way of expressing social and financial credit. Each has grown through a network effect that attracts people to join and to stay, making it
incredibly difficult to siphon a place’s best and brightest away from an established ecosystem onto something new. That’s why Milan is not a capital for technology
startups any more than Palo Alto and San Francisco are for fashion.
JUNE 2013: Matt Cohler (GP @ Benchmark) highlights Berlin as a global startup center
Tuesday, June 4th, 2013
Berlin’sNetworkEffectWillMakeItAGlobalStartup Center
Even corporates get involved
Snapshot:
The future
The fact that repeat or ‘serial’ entrepreneurs are less common in
Europe and that European VCs lag US VCs in terms of
experience explains the remaining difference in performance.
*European Venture Capital: Myths and Facts: British Private Equity & Venture Capital Association 2011
NOW is the time with great potential for serial entrepreneurs
Continental Europe is in danger of dropping
below a critical size, which could threaten the
entire industry.
2005 2006 2007 2008 2009 2010 2011
Rebound time: Venture will grow and early funds will take the lead
*Global venture capital insights and trends report 2011 by Ernst & Young
Next generation VC funds: more entrepreneurial (run by Entrepreneurs)
Next generation VC funds: global
FAST: “make a decision [...] within 24 hours would attract every good startup”
Next generation VC funds: stage-agnostic
and hands-on!
angelfund.vc - confidential
Benjamin Rohé
br @ angelfund.vc
+49 173 975 1021Thank you!

More Related Content

What's hot

Startups and Venture Capital in Germany
Startups and Venture  Capital in GermanyStartups and Venture  Capital in Germany
Startups and Venture Capital in GermanyFrontline Ventures
 
Lipper European fund market review 2014
Lipper European fund market review 2014Lipper European fund market review 2014
Lipper European fund market review 2014Frédéric Barillet
 
Perspectives on VC in Europe
Perspectives on VC in EuropePerspectives on VC in Europe
Perspectives on VC in EuropeBen Holmes
 
transatlantic-tech-boom_16
transatlantic-tech-boom_16transatlantic-tech-boom_16
transatlantic-tech-boom_16Stuart Rock
 
Private Debt Investor | Europe Report Highlights 2018
Private Debt Investor | Europe Report Highlights 2018Private Debt Investor | Europe Report Highlights 2018
Private Debt Investor | Europe Report Highlights 2018Thorsten Lederer 托尔斯滕
 
Atomico the state-of_european_tech_report_2019
Atomico the state-of_european_tech_report_2019Atomico the state-of_european_tech_report_2019
Atomico the state-of_european_tech_report_2019lingathoti
 
EIU_InnovationClusters_Final-1
EIU_InnovationClusters_Final-1EIU_InnovationClusters_Final-1
EIU_InnovationClusters_Final-1Michael Martins
 
Turkish Technology Sector M&A report 2017
Turkish Technology Sector M&A report 2017Turkish Technology Sector M&A report 2017
Turkish Technology Sector M&A report 2017Aslı Atakulu Tekinbaş
 
Colorado Innovation Network Summit 2013: Hot Spots
Colorado Innovation Network Summit 2013: Hot SpotsColorado Innovation Network Summit 2013: Hot Spots
Colorado Innovation Network Summit 2013: Hot SpotsFoxy Cow
 
2018 WSC Japanese Venture Capital Landscape
2018 WSC Japanese Venture Capital Landscape2018 WSC Japanese Venture Capital Landscape
2018 WSC Japanese Venture Capital LandscapeShun Nagao
 
European attractiveness-survey-2013
European attractiveness-survey-2013European attractiveness-survey-2013
European attractiveness-survey-2013Mundo Spanish
 
Hot Spots Presentation to Colorado State University
Hot Spots Presentation to Colorado State UniversityHot Spots Presentation to Colorado State University
Hot Spots Presentation to Colorado State UniversityFoxy Cow
 
Fund managers in Spain and Italy need to prove themselves if a windfall is t...
Fund managers in Spain and Italy need  to prove themselves if a windfall is t...Fund managers in Spain and Italy need  to prove themselves if a windfall is t...
Fund managers in Spain and Italy need to prove themselves if a windfall is t...Feelcapital
 
Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013
Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013
Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013digitalkcon
 

What's hot (17)

Startups and Venture Capital in Germany
Startups and Venture  Capital in GermanyStartups and Venture  Capital in Germany
Startups and Venture Capital in Germany
 
Lipper European fund market review 2014
Lipper European fund market review 2014Lipper European fund market review 2014
Lipper European fund market review 2014
 
Perspectives on VC in Europe
Perspectives on VC in EuropePerspectives on VC in Europe
Perspectives on VC in Europe
 
transatlantic-tech-boom_16
transatlantic-tech-boom_16transatlantic-tech-boom_16
transatlantic-tech-boom_16
 
Private Debt Investor | Europe Report Highlights 2018
Private Debt Investor | Europe Report Highlights 2018Private Debt Investor | Europe Report Highlights 2018
Private Debt Investor | Europe Report Highlights 2018
 
Atomico the state-of_european_tech_report_2019
Atomico the state-of_european_tech_report_2019Atomico the state-of_european_tech_report_2019
Atomico the state-of_european_tech_report_2019
 
EIU_InnovationClusters_Final-1
EIU_InnovationClusters_Final-1EIU_InnovationClusters_Final-1
EIU_InnovationClusters_Final-1
 
Turkish Technology Sector M&A report 2017
Turkish Technology Sector M&A report 2017Turkish Technology Sector M&A report 2017
Turkish Technology Sector M&A report 2017
 
Colorado Innovation Network Summit 2013: Hot Spots
Colorado Innovation Network Summit 2013: Hot SpotsColorado Innovation Network Summit 2013: Hot Spots
Colorado Innovation Network Summit 2013: Hot Spots
 
2018 WSC Japanese Venture Capital Landscape
2018 WSC Japanese Venture Capital Landscape2018 WSC Japanese Venture Capital Landscape
2018 WSC Japanese Venture Capital Landscape
 
European attractiveness-survey-2013
European attractiveness-survey-2013European attractiveness-survey-2013
European attractiveness-survey-2013
 
European attractiveness-survey-2013
European attractiveness-survey-2013European attractiveness-survey-2013
European attractiveness-survey-2013
 
Gfci15 - mars 2014
Gfci15 - mars 2014Gfci15 - mars 2014
Gfci15 - mars 2014
 
Hot Spots Presentation to Colorado State University
Hot Spots Presentation to Colorado State UniversityHot Spots Presentation to Colorado State University
Hot Spots Presentation to Colorado State University
 
Fund managers in Spain and Italy need to prove themselves if a windfall is t...
Fund managers in Spain and Italy need  to prove themselves if a windfall is t...Fund managers in Spain and Italy need  to prove themselves if a windfall is t...
Fund managers in Spain and Italy need to prove themselves if a windfall is t...
 
Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013
Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013
Pavel Ezekiev & Pablo Larguia at Digitalk, June 3, 2013
 
June7 Istanbul
June7 IstanbulJune7 Istanbul
June7 Istanbul
 

Viewers also liked

Maahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttö
Maahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttöMaahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttö
Maahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttöTHL
 
Ulkomaista syntyperää olevien nuorten terveys ja hyvinvointi
Ulkomaista syntyperää olevien nuorten terveys ja hyvinvointiUlkomaista syntyperää olevien nuorten terveys ja hyvinvointi
Ulkomaista syntyperää olevien nuorten terveys ja hyvinvointiTHL
 
Mechanics of materials lecture 06, Engr. Abdullah Khan
Mechanics of materials lecture 06, Engr. Abdullah KhanMechanics of materials lecture 06, Engr. Abdullah Khan
Mechanics of materials lecture 06, Engr. Abdullah KhanAbdullah Khan
 
Mechanics of materials lecture 04, Engr. Abdullah Khan
Mechanics of materials lecture 04, Engr. Abdullah KhanMechanics of materials lecture 04, Engr. Abdullah Khan
Mechanics of materials lecture 04, Engr. Abdullah KhanAbdullah Khan
 
6 part2 pedestrian_bicycleprogra_1
6 part2 pedestrian_bicycleprogra_16 part2 pedestrian_bicycleprogra_1
6 part2 pedestrian_bicycleprogra_1E'ville Eye
 
La Alimentación en la Embarazada
La Alimentación en la EmbarazadaLa Alimentación en la Embarazada
La Alimentación en la EmbarazadaElisa Gaillard
 
Mechanics of materials lecture 01, Engr. Abdullah Khan
Mechanics of materials lecture 01, Engr. Abdullah KhanMechanics of materials lecture 01, Engr. Abdullah Khan
Mechanics of materials lecture 01, Engr. Abdullah KhanAbdullah Khan
 
Juarez sanchez miriam_m3s2_fenomenosnaturales
Juarez sanchez miriam_m3s2_fenomenosnaturalesJuarez sanchez miriam_m3s2_fenomenosnaturales
Juarez sanchez miriam_m3s2_fenomenosnaturalesMiry Juarez
 

Viewers also liked (10)

Maahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttö
Maahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttöMaahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttö
Maahanmuuttajien ja turvapaikanhakijoiden terveydentila ja palveluiden käyttö
 
Ulkomaista syntyperää olevien nuorten terveys ja hyvinvointi
Ulkomaista syntyperää olevien nuorten terveys ja hyvinvointiUlkomaista syntyperää olevien nuorten terveys ja hyvinvointi
Ulkomaista syntyperää olevien nuorten terveys ja hyvinvointi
 
Mechanics of materials lecture 06, Engr. Abdullah Khan
Mechanics of materials lecture 06, Engr. Abdullah KhanMechanics of materials lecture 06, Engr. Abdullah Khan
Mechanics of materials lecture 06, Engr. Abdullah Khan
 
Mechanics of materials lecture 04, Engr. Abdullah Khan
Mechanics of materials lecture 04, Engr. Abdullah KhanMechanics of materials lecture 04, Engr. Abdullah Khan
Mechanics of materials lecture 04, Engr. Abdullah Khan
 
Introducción a MySql
Introducción a MySqlIntroducción a MySql
Introducción a MySql
 
6 part2 pedestrian_bicycleprogra_1
6 part2 pedestrian_bicycleprogra_16 part2 pedestrian_bicycleprogra_1
6 part2 pedestrian_bicycleprogra_1
 
ST. PATRICK'S HISTORY
ST. PATRICK'S HISTORY ST. PATRICK'S HISTORY
ST. PATRICK'S HISTORY
 
La Alimentación en la Embarazada
La Alimentación en la EmbarazadaLa Alimentación en la Embarazada
La Alimentación en la Embarazada
 
Mechanics of materials lecture 01, Engr. Abdullah Khan
Mechanics of materials lecture 01, Engr. Abdullah KhanMechanics of materials lecture 01, Engr. Abdullah Khan
Mechanics of materials lecture 01, Engr. Abdullah Khan
 
Juarez sanchez miriam_m3s2_fenomenosnaturales
Juarez sanchez miriam_m3s2_fenomenosnaturalesJuarez sanchez miriam_m3s2_fenomenosnaturales
Juarez sanchez miriam_m3s2_fenomenosnaturales
 

Similar to American Council on Germany (ACG) Warburg Chapter: “Venture Capital in Europe - The Highs and Lows and Why Now?”

Building momentum in venture capital across europe
Building momentum in venture capital across europeBuilding momentum in venture capital across europe
Building momentum in venture capital across europeBpifrance
 
Next Station: Europe: How Europe´s tech startup ecosystems are evolving
Next Station: Europe: How Europe´s tech startup ecosystems are evolvingNext Station: Europe: How Europe´s tech startup ecosystems are evolving
Next Station: Europe: How Europe´s tech startup ecosystems are evolvingAxon Partners Group
 
Onetti - Marinucci - MTB Job Creator Tour 2013
Onetti - Marinucci - MTB Job Creator Tour 2013Onetti - Marinucci - MTB Job Creator Tour 2013
Onetti - Marinucci - MTB Job Creator Tour 2013Mind The Bridge Foundation
 
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014CAR FOR YOU
 
DealMarket Digest Issue130 - 28 February 2014
DealMarket Digest Issue130 - 28 February 2014DealMarket Digest Issue130 - 28 February 2014
DealMarket Digest Issue130 - 28 February 2014Urs Haeusler
 
A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015
A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015
A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015Praveen Paranjothi
 
WSC UK Venture Capital Landscape
WSC UK Venture Capital LandscapeWSC UK Venture Capital Landscape
WSC UK Venture Capital LandscapeAlex Wilson
 
White Star Capital Germany Venture Capital Landscape 2020
White Star Capital Germany Venture Capital Landscape 2020White Star Capital Germany Venture Capital Landscape 2020
White Star Capital Germany Venture Capital Landscape 2020JeandeLencquesaing
 
The State of European Tech 2015 Magazine
The State of European Tech 2015 MagazineThe State of European Tech 2015 Magazine
The State of European Tech 2015 MagazineAtomico
 
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...CAR FOR YOU
 
Vc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, HealthcareVc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, HealthcareAliona Schastlivtseva
 
usis+review+-+march+2015
usis+review+-+march+2015usis+review+-+march+2015
usis+review+-+march+2015Tireni Ladega
 
89147_UCL-Investment-Brochure
89147_UCL-Investment-Brochure89147_UCL-Investment-Brochure
89147_UCL-Investment-BrochureGordon Qiu
 
The future of entrepreneurship
The future of entrepreneurshipThe future of entrepreneurship
The future of entrepreneurshipCarsonified Team
 
The accelerator and incubator ecosystem in Europe (2013)
The accelerator and incubator ecosystem in Europe (2013)The accelerator and incubator ecosystem in Europe (2013)
The accelerator and incubator ecosystem in Europe (2013)FrenchWeb.fr
 
White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018Sanjay Zimmermann
 
Boosting Digital Startup Financing in Europe by France Digitale
Boosting Digital Startup Financing in Europe by France Digitale Boosting Digital Startup Financing in Europe by France Digitale
Boosting Digital Startup Financing in Europe by France Digitale France Digitale
 

Similar to American Council on Germany (ACG) Warburg Chapter: “Venture Capital in Europe - The Highs and Lows and Why Now?” (20)

The $50BN Elephant - European Venture Capital
The $50BN Elephant - European Venture CapitalThe $50BN Elephant - European Venture Capital
The $50BN Elephant - European Venture Capital
 
Building momentum in venture capital across europe
Building momentum in venture capital across europeBuilding momentum in venture capital across europe
Building momentum in venture capital across europe
 
Next Station: Europe: How Europe´s tech startup ecosystems are evolving
Next Station: Europe: How Europe´s tech startup ecosystems are evolvingNext Station: Europe: How Europe´s tech startup ecosystems are evolving
Next Station: Europe: How Europe´s tech startup ecosystems are evolving
 
Titans of European Tech (4 edition)
Titans of European Tech (4 edition)Titans of European Tech (4 edition)
Titans of European Tech (4 edition)
 
Onetti - Marinucci - MTB Job Creator Tour 2013
Onetti - Marinucci - MTB Job Creator Tour 2013Onetti - Marinucci - MTB Job Creator Tour 2013
Onetti - Marinucci - MTB Job Creator Tour 2013
 
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
 
DealMarket Digest Issue130 - 28 February 2014
DealMarket Digest Issue130 - 28 February 2014DealMarket Digest Issue130 - 28 February 2014
DealMarket Digest Issue130 - 28 February 2014
 
A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015
A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015
A VC dialogue on Venture Capital, US Embassy Presentation Feb 2015
 
WSC UK Venture Capital Landscape
WSC UK Venture Capital LandscapeWSC UK Venture Capital Landscape
WSC UK Venture Capital Landscape
 
White Star Capital Germany Venture Capital Landscape 2020
White Star Capital Germany Venture Capital Landscape 2020White Star Capital Germany Venture Capital Landscape 2020
White Star Capital Germany Venture Capital Landscape 2020
 
The State of European Tech 2015 Magazine
The State of European Tech 2015 MagazineThe State of European Tech 2015 Magazine
The State of European Tech 2015 Magazine
 
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
 
Vc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, HealthcareVc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, Healthcare
 
usis+review+-+march+2015
usis+review+-+march+2015usis+review+-+march+2015
usis+review+-+march+2015
 
89147_UCL-Investment-Brochure
89147_UCL-Investment-Brochure89147_UCL-Investment-Brochure
89147_UCL-Investment-Brochure
 
The future of entrepreneurship
The future of entrepreneurshipThe future of entrepreneurship
The future of entrepreneurship
 
The accelerator and incubator ecosystem in Europe (2013)
The accelerator and incubator ecosystem in Europe (2013)The accelerator and incubator ecosystem in Europe (2013)
The accelerator and incubator ecosystem in Europe (2013)
 
SmarterMoney+ Review 4 Summer 2015
SmarterMoney+ Review 4 Summer 2015SmarterMoney+ Review 4 Summer 2015
SmarterMoney+ Review 4 Summer 2015
 
White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018
 
Boosting Digital Startup Financing in Europe by France Digitale
Boosting Digital Startup Financing in Europe by France Digitale Boosting Digital Startup Financing in Europe by France Digitale
Boosting Digital Startup Financing in Europe by France Digitale
 

More from Benjamin Rohé

From school drop-out to a Foundation for sustainable tech
From school drop-out to a Foundation for sustainable techFrom school drop-out to a Foundation for sustainable tech
From school drop-out to a Foundation for sustainable techBenjamin Rohé
 
weXelerate: corporate innovation and other disasters - benjaminrohe.com
weXelerate: corporate innovation and other disasters -  benjaminrohe.comweXelerate: corporate innovation and other disasters -  benjaminrohe.com
weXelerate: corporate innovation and other disasters - benjaminrohe.comBenjamin Rohé
 
20. EURO FINANCE WEEK - Real Estate Forum - Opening Keynote
20. EURO FINANCE WEEK - Real Estate Forum - Opening Keynote20. EURO FINANCE WEEK - Real Estate Forum - Opening Keynote
20. EURO FINANCE WEEK - Real Estate Forum - Opening KeynoteBenjamin Rohé
 
Data - the new oil #data #oil #technology #future
Data - the new oil #data #oil #technology #futureData - the new oil #data #oil #technology #future
Data - the new oil #data #oil #technology #futureBenjamin Rohé
 
Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...
Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...
Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...Benjamin Rohé
 
International entrepreneurship culture in berlin
International entrepreneurship culture in berlinInternational entrepreneurship culture in berlin
International entrepreneurship culture in berlinBenjamin Rohé
 
Entrepreneurship 3.0 - The 3rd Wave of Industrial Revolution
Entrepreneurship 3.0 - The 3rd Wave of Industrial RevolutionEntrepreneurship 3.0 - The 3rd Wave of Industrial Revolution
Entrepreneurship 3.0 - The 3rd Wave of Industrial RevolutionBenjamin Rohé
 
NATO Cyber Security Conference: Creating IT-Security Start-Ups
NATO Cyber Security Conference: Creating IT-Security Start-UpsNATO Cyber Security Conference: Creating IT-Security Start-Ups
NATO Cyber Security Conference: Creating IT-Security Start-UpsBenjamin Rohé
 
Start-Ups + Mittelstand = Success!
Start-Ups + Mittelstand = Success!Start-Ups + Mittelstand = Success!
Start-Ups + Mittelstand = Success!Benjamin Rohé
 
SCHEITERN und aufstehen #WEBINALE 2011 Berlin
SCHEITERN und aufstehen #WEBINALE 2011 BerlinSCHEITERN und aufstehen #WEBINALE 2011 Berlin
SCHEITERN und aufstehen #WEBINALE 2011 BerlinBenjamin Rohé
 
Failure: meet the Entrepreneurs best friend
Failure: meet the Entrepreneurs best friendFailure: meet the Entrepreneurs best friend
Failure: meet the Entrepreneurs best friendBenjamin Rohé
 
Why worry? Life as an Entrepreneur.
Why worry? Life as an Entrepreneur. Why worry? Life as an Entrepreneur.
Why worry? Life as an Entrepreneur. Benjamin Rohé
 
How to value your tech startup
How to value your tech startupHow to value your tech startup
How to value your tech startupBenjamin Rohé
 

More from Benjamin Rohé (14)

From school drop-out to a Foundation for sustainable tech
From school drop-out to a Foundation for sustainable techFrom school drop-out to a Foundation for sustainable tech
From school drop-out to a Foundation for sustainable tech
 
weXelerate: corporate innovation and other disasters - benjaminrohe.com
weXelerate: corporate innovation and other disasters -  benjaminrohe.comweXelerate: corporate innovation and other disasters -  benjaminrohe.com
weXelerate: corporate innovation and other disasters - benjaminrohe.com
 
20. EURO FINANCE WEEK - Real Estate Forum - Opening Keynote
20. EURO FINANCE WEEK - Real Estate Forum - Opening Keynote20. EURO FINANCE WEEK - Real Estate Forum - Opening Keynote
20. EURO FINANCE WEEK - Real Estate Forum - Opening Keynote
 
Data - the new oil #data #oil #technology #future
Data - the new oil #data #oil #technology #futureData - the new oil #data #oil #technology #future
Data - the new oil #data #oil #technology #future
 
Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...
Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...
Berlin State Of Mind - Transatlantic Entrepreneur Conference at New York Inte...
 
International entrepreneurship culture in berlin
International entrepreneurship culture in berlinInternational entrepreneurship culture in berlin
International entrepreneurship culture in berlin
 
Entrepreneurship 3.0 - The 3rd Wave of Industrial Revolution
Entrepreneurship 3.0 - The 3rd Wave of Industrial RevolutionEntrepreneurship 3.0 - The 3rd Wave of Industrial Revolution
Entrepreneurship 3.0 - The 3rd Wave of Industrial Revolution
 
NATO Cyber Security Conference: Creating IT-Security Start-Ups
NATO Cyber Security Conference: Creating IT-Security Start-UpsNATO Cyber Security Conference: Creating IT-Security Start-Ups
NATO Cyber Security Conference: Creating IT-Security Start-Ups
 
Start-Ups + Mittelstand = Success!
Start-Ups + Mittelstand = Success!Start-Ups + Mittelstand = Success!
Start-Ups + Mittelstand = Success!
 
SCHEITERN und aufstehen #WEBINALE 2011 Berlin
SCHEITERN und aufstehen #WEBINALE 2011 BerlinSCHEITERN und aufstehen #WEBINALE 2011 Berlin
SCHEITERN und aufstehen #WEBINALE 2011 Berlin
 
Failure: meet the Entrepreneurs best friend
Failure: meet the Entrepreneurs best friendFailure: meet the Entrepreneurs best friend
Failure: meet the Entrepreneurs best friend
 
Why worry? Life as an Entrepreneur.
Why worry? Life as an Entrepreneur. Why worry? Life as an Entrepreneur.
Why worry? Life as an Entrepreneur.
 
How to value your tech startup
How to value your tech startupHow to value your tech startup
How to value your tech startup
 
Seed funding
Seed fundingSeed funding
Seed funding
 

Recently uploaded

Six Myths about Ontologies: The Basics of Formal Ontology
Six Myths about Ontologies: The Basics of Formal OntologySix Myths about Ontologies: The Basics of Formal Ontology
Six Myths about Ontologies: The Basics of Formal Ontologyjohnbeverley2021
 
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...ScyllaDB
 
Tales from a Passkey Provider Progress from Awareness to Implementation.pptx
Tales from a Passkey Provider  Progress from Awareness to Implementation.pptxTales from a Passkey Provider  Progress from Awareness to Implementation.pptx
Tales from a Passkey Provider Progress from Awareness to Implementation.pptxFIDO Alliance
 
State of the Smart Building Startup Landscape 2024!
State of the Smart Building Startup Landscape 2024!State of the Smart Building Startup Landscape 2024!
State of the Smart Building Startup Landscape 2024!Memoori
 
AI in Action: Real World Use Cases by Anitaraj
AI in Action: Real World Use Cases by AnitarajAI in Action: Real World Use Cases by Anitaraj
AI in Action: Real World Use Cases by AnitarajAnitaRaj43
 
Portal Kombat : extension du réseau de propagande russe
Portal Kombat : extension du réseau de propagande russePortal Kombat : extension du réseau de propagande russe
Portal Kombat : extension du réseau de propagande russe中 央社
 
Oauth 2.0 Introduction and Flows with MuleSoft
Oauth 2.0 Introduction and Flows with MuleSoftOauth 2.0 Introduction and Flows with MuleSoft
Oauth 2.0 Introduction and Flows with MuleSoftshyamraj55
 
Generative AI Use Cases and Applications.pdf
Generative AI Use Cases and Applications.pdfGenerative AI Use Cases and Applications.pdf
Generative AI Use Cases and Applications.pdfalexjohnson7307
 
Easier, Faster, and More Powerful – Notes Document Properties Reimagined
Easier, Faster, and More Powerful – Notes Document Properties ReimaginedEasier, Faster, and More Powerful – Notes Document Properties Reimagined
Easier, Faster, and More Powerful – Notes Document Properties Reimaginedpanagenda
 
Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...FIDO Alliance
 
Cyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptx
Cyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptxCyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptx
Cyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptxMasterG
 
Microsoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - QuestionnaireMicrosoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - QuestionnaireExakis Nelite
 
Vector Search @ sw2con for slideshare.pptx
Vector Search @ sw2con for slideshare.pptxVector Search @ sw2con for slideshare.pptx
Vector Search @ sw2con for slideshare.pptxjbellis
 
AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)
AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)
AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)Samir Dash
 
ChatGPT and Beyond - Elevating DevOps Productivity
ChatGPT and Beyond - Elevating DevOps ProductivityChatGPT and Beyond - Elevating DevOps Productivity
ChatGPT and Beyond - Elevating DevOps ProductivityVictorSzoltysek
 
How we scaled to 80K users by doing nothing!.pdf
How we scaled to 80K users by doing nothing!.pdfHow we scaled to 80K users by doing nothing!.pdf
How we scaled to 80K users by doing nothing!.pdfSrushith Repakula
 
JohnPollard-hybrid-app-RailsConf2024.pptx
JohnPollard-hybrid-app-RailsConf2024.pptxJohnPollard-hybrid-app-RailsConf2024.pptx
JohnPollard-hybrid-app-RailsConf2024.pptxJohnPollard37
 
TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...
TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...
TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...TrustArc
 
Google I/O Extended 2024 Warsaw
Google I/O Extended 2024 WarsawGoogle I/O Extended 2024 Warsaw
Google I/O Extended 2024 WarsawGDSC PJATK
 
ADP Passwordless Journey Case Study.pptx
ADP Passwordless Journey Case Study.pptxADP Passwordless Journey Case Study.pptx
ADP Passwordless Journey Case Study.pptxFIDO Alliance
 

Recently uploaded (20)

Six Myths about Ontologies: The Basics of Formal Ontology
Six Myths about Ontologies: The Basics of Formal OntologySix Myths about Ontologies: The Basics of Formal Ontology
Six Myths about Ontologies: The Basics of Formal Ontology
 
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
 
Tales from a Passkey Provider Progress from Awareness to Implementation.pptx
Tales from a Passkey Provider  Progress from Awareness to Implementation.pptxTales from a Passkey Provider  Progress from Awareness to Implementation.pptx
Tales from a Passkey Provider Progress from Awareness to Implementation.pptx
 
State of the Smart Building Startup Landscape 2024!
State of the Smart Building Startup Landscape 2024!State of the Smart Building Startup Landscape 2024!
State of the Smart Building Startup Landscape 2024!
 
AI in Action: Real World Use Cases by Anitaraj
AI in Action: Real World Use Cases by AnitarajAI in Action: Real World Use Cases by Anitaraj
AI in Action: Real World Use Cases by Anitaraj
 
Portal Kombat : extension du réseau de propagande russe
Portal Kombat : extension du réseau de propagande russePortal Kombat : extension du réseau de propagande russe
Portal Kombat : extension du réseau de propagande russe
 
Oauth 2.0 Introduction and Flows with MuleSoft
Oauth 2.0 Introduction and Flows with MuleSoftOauth 2.0 Introduction and Flows with MuleSoft
Oauth 2.0 Introduction and Flows with MuleSoft
 
Generative AI Use Cases and Applications.pdf
Generative AI Use Cases and Applications.pdfGenerative AI Use Cases and Applications.pdf
Generative AI Use Cases and Applications.pdf
 
Easier, Faster, and More Powerful – Notes Document Properties Reimagined
Easier, Faster, and More Powerful – Notes Document Properties ReimaginedEasier, Faster, and More Powerful – Notes Document Properties Reimagined
Easier, Faster, and More Powerful – Notes Document Properties Reimagined
 
Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...
 
Cyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptx
Cyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptxCyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptx
Cyber Insurance - RalphGilot - Embry-Riddle Aeronautical University.pptx
 
Microsoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - QuestionnaireMicrosoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - Questionnaire
 
Vector Search @ sw2con for slideshare.pptx
Vector Search @ sw2con for slideshare.pptxVector Search @ sw2con for slideshare.pptx
Vector Search @ sw2con for slideshare.pptx
 
AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)
AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)
AI+A11Y 11MAY2024 HYDERBAD GAAD 2024 - HelloA11Y (11 May 2024)
 
ChatGPT and Beyond - Elevating DevOps Productivity
ChatGPT and Beyond - Elevating DevOps ProductivityChatGPT and Beyond - Elevating DevOps Productivity
ChatGPT and Beyond - Elevating DevOps Productivity
 
How we scaled to 80K users by doing nothing!.pdf
How we scaled to 80K users by doing nothing!.pdfHow we scaled to 80K users by doing nothing!.pdf
How we scaled to 80K users by doing nothing!.pdf
 
JohnPollard-hybrid-app-RailsConf2024.pptx
JohnPollard-hybrid-app-RailsConf2024.pptxJohnPollard-hybrid-app-RailsConf2024.pptx
JohnPollard-hybrid-app-RailsConf2024.pptx
 
TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...
TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...
TrustArc Webinar - Unified Trust Center for Privacy, Security, Compliance, an...
 
Google I/O Extended 2024 Warsaw
Google I/O Extended 2024 WarsawGoogle I/O Extended 2024 Warsaw
Google I/O Extended 2024 Warsaw
 
ADP Passwordless Journey Case Study.pptx
ADP Passwordless Journey Case Study.pptxADP Passwordless Journey Case Study.pptx
ADP Passwordless Journey Case Study.pptx
 

American Council on Germany (ACG) Warburg Chapter: “Venture Capital in Europe - The Highs and Lows and Why Now?”

  • 1. “Venture Capital in Europe - The Highs and Lows and Why Now?” Charlotte, NC - Aug 23 2013
  • 2. angelfund.vc - confidential ‣ Internet Entrepreneur since 1998 - launched first business at age of 17 ‣ Lecturer at various European universities about entrepreneurship ‣ Former Advisor to Deutsche Telekom AG ‣ VC fund Partner and Business Angel
  • 4. ‘94 amazon ‘95 yahoo!’83 AOL ‘94 netscape 80‘s and 90’s delivered primarily great results for US VCs only ‘84 cisco predominant over-performing investments predominant under-performing investments
  • 5. 2012: also 4,4b in 1074 deals The “old model” of venture (driven by investment bankers) is stagnating
  • 6. Eight large studies have examined the IRR of Angel & Early-stage Investments Year Study Total Inv. Exited Inv. IRR 2009 UK Wiltbank: “Siding with the Angels“ 1.080 406 25% 2009 US Band of Angels Website 200 Unknown 18% 2009 US Sohl: “The Angel Investor Market in 2008“ Unknown Unknown 22% 2009 US DeGenarro & Dwyer: “Expected returns to Angel investors“ 603 434 33% 2008 US Sohl: “The Angel Investor Market in 2007“ Unknown Unknown 28% 2007 US Wiltbank: “Returns to Angel Investor in Groups“ 3.097 1.137 30% 2007 US Villalobos & Payne:“Startup Pre-Money Valuation“ 117 117 24% 2002 UK Mason & Harrison: “The rates of return from informal venture capital investments“ 372 128 37% The model works in the US (IRRs of 25+%) 8 studies examined the IRR of angel & early-stage Investments Eight large studies have examined the IRR of Angel & Early-stage Investments Year Study Total Inv. Exited Inv. IRR 2009 UK Wiltbank: “Siding with the Angels“ 1.080 406 25% 2009 US Band of Angels Website 200 Unknown 18% 2009 US Sohl: “The Angel Investor Market in 2008“ Unknown Unknown 22% 2009 US DeGenarro & Dwyer: “Expected returns to Angel investors“ 603 434 33% 2008 US Sohl: “The Angel Investor Market in 2007“ Unknown Unknown 28% 2007 US Wiltbank: “Returns to Angel Investor in Groups“ 3.097 1.137 30% 2007 US Villalobos & Payne:“Startup Pre-Money Valuation“ 117 117 24% 2002 UK Mason & Harrison: “The rates of return from informal venture capital investments“ 372 128 37%
  • 7. And startups are responsible for 30% of all US jobs in the last 10 years
  • 8. Calculations by Venture Economics indicate that from the beginning of the VC industry in Europe until 2007, the average European VC fund had an annual return of minus 4 percent versus 16 percent for the average U. S. VC fund Many Venture Funds ended 3-6 years ago! Lerner, op. cit., p. 123. Early VC vintages had terrible performance in Europe due to dot-com bubble
  • 9. Crisis delayed fundraising and decreased LPs confidence for “2nd generation” funds By contrast, the story for European venture funds was one of struggle: European fund-raising further declined to US$3 billion (amount closed) for 41 funds, due to Europe’s sovereign debt crisis and its muted medium-term growth potential. In 2000, European Venture Funds raised US$60b+! source: European Private Equity & VC Association
  • 10. To boost confidence: EIF is supporting the Venture Capital industry EIF commitments: about EUR 3 bn in VC up to 50% commitments can be committed by EIF (no management fee but carried interest) 50 % 50 % Limited Partners EIF EUROPEAN INVESTMENT FUND
  • 11. Venture business is independent from IPOs; 90% of exits are M&A transactions the main exit route for VC-backed companies is acquisitions (M&A), representing more than 90% of all exits. Furthermore, VC firms are also selling companies to private equity firms as a third path to liquidity.
  • 12. Pace of adoption is accelerating, impact of recessions is minimal
  • 13. Overcoming the “bad memories” is the key issue in Europe ‣ Huge job-creation factor ‣ IPO independent ‣ Industry is backed by European Investment Fund ‣ Recession “proofed” ‣ IRRs of 25+% BUT: ‣ Bad experiences from 1st generations of VC funds ‣ Current model is stagnating
  • 15. ‣ has a hand full independent venture funds € >100m+ ‣ and only a few professional venture funds € <100m ‣ while the US has, in each category, >200! VCs active Germany, an economy that is 25% of US GDP.... 25% of US GDP, <10 (Germany) vs. >200 (US) Venture Funds €>100m
  • 16. *European Venture Capital: Myths and Facts: British Private Equity & Venture Capital Association 2011 Equal success rates of European and US IPO exits there is no difference in the success rates of European and US deals from the same vintage year with respect to IPO exits
  • 17. in a economical environment that is not exactly underperforming....
  • 18. Exits in the same order of magnitude, need only half the amount of Venture Capital in Europe vs. US Capital efficiency in the US is not increasing - talent is more expensive - hence lower returns, higher prices. Souece: Dow Jones VentureSource, 2008 exchange rates ... and in a time where Europe is today where the US was in 1997-2001 The average in US from 1997-2001 was $41m per company at $417m average exit=> just like in Europe right now!
  • 19. Software/Internet companies dominate the European VC market European Venture Capital Financings by Industry In 2011, the software sector again accounted for the largest portion of the European venture capital market, representing >20% of all financings.
  • 20. Amount raised, by region, 2011 (US$m)* *Global venture capital insights and trends report 2011 by Ernst & Young SiliconValley NewEngland SoCal NYMetro Beijing UK Shanghai Potomac France Canada Germany Israel Switzerland Bangalore Germany: head-to-head with Canada and Israel while NY companies raised 4,5x more
  • 21. As one prominent fund of funds manager with investments in more than 50 VC funds across Europe put it to us: The UK is far ahead of the rest. Holland and Scandinavian countries are next. There is not so much VC activity in Germany and Switzerland. France has some, but its law requiring pension funds to invest a certain percent in VC firms is controversial and perhaps counter-productive. There is very little VC activity in Italy, Spain and Portugal. Ivey Busines Journal March/April 2011 UKs GDP is 1/3 lower then Germany but VC market is 2x of Germany
  • 22. Germany has a unique model where, in a different twist to the hugely successful VC-funded start-up ecosystem of Silicon Valley, the industry is not as much reliant on a handful of blockbusters or even a closely networked startup environment, but rather one where a high number of regionally diversified quality opportunities correspond to increasing levels of entrepreneurial activity. - Andreas Ritter, ARICO Private Investments Advisory and former Head of Private Equity Duke University's endowment “ Germanys Mittelstand is also a great Venture Capital opportunity
  • 23. Building global hubs (London/Berlin) organically Silicon Valley took 40+ years to build New York 15+ years London 10+ years As a international hub, Berlin is around for 5+years
  • 24. More then 2.000 new startups since 2008! Berlin alone: 2.000 new startups in 5 years!
  • 25. To compare: 1.000 companies receive Series A funding in silicon valley a year! But it’s still very small compared to Silicon Valley!
  • 26. Players of global magnitude emerged But, noteworthy, some global category leaders with international investors
  • 27. Berlin’sNetworkEffectWillMakeItAGlobalStartup Center : Matt Cohler is a General Partner at Benchmark and was the lead investor in Asana, Instagram and Quora among others. Creators. Any creative ecosystem needs a meaningful group of creators to germinate new work. A fashion ecosystem, for example, needs designers; a film ecosystem needs writers. In a technology startup ecosystem, these people are the founders and entrepreneurs. Builders. These are the skilled creative people who shape vision into reality. In a technology ecosystem they’re people like engineers and organizational leaders. The right kind of capital. Different types of ecosystems need different types (and amounts) of capital to fuel growth. In a tech startup ecosystem the right kind of capital is venture capital: simple equity funding that’s aligned with creators and builders, takes a long-term view, and sometimes works shoulder-to-shoulder with the creators and builders themselves. Rule of law. I mean a developed and reliable legal system, along with a culture and society that values that system. This one may seem obvious, but it’s still not a given in many parts of the world. The center stage. To attract the best, most talented, most capable and most committed people, a creative ecosystem needs to command the local center stage. Finance holds the center stage in London, while in Hollywood it’s entertainment and it’s fashion in Milan. Each of these creative ecosystems has its own unique culture, expertise, and way of expressing social and financial credit. Each has grown through a network effect that attracts people to join and to stay, making it incredibly difficult to siphon a place’s best and brightest away from an established ecosystem onto something new. That’s why Milan is not a capital for technology startups any more than Palo Alto and San Francisco are for fashion. JUNE 2013: Matt Cohler (GP @ Benchmark) highlights Berlin as a global startup center Tuesday, June 4th, 2013
  • 30. The fact that repeat or ‘serial’ entrepreneurs are less common in Europe and that European VCs lag US VCs in terms of experience explains the remaining difference in performance. *European Venture Capital: Myths and Facts: British Private Equity & Venture Capital Association 2011 NOW is the time with great potential for serial entrepreneurs
  • 31. Continental Europe is in danger of dropping below a critical size, which could threaten the entire industry. 2005 2006 2007 2008 2009 2010 2011 Rebound time: Venture will grow and early funds will take the lead *Global venture capital insights and trends report 2011 by Ernst & Young
  • 32. Next generation VC funds: more entrepreneurial (run by Entrepreneurs)
  • 33. Next generation VC funds: global
  • 34. FAST: “make a decision [...] within 24 hours would attract every good startup”
  • 35. Next generation VC funds: stage-agnostic
  • 37. angelfund.vc - confidential Benjamin Rohé br @ angelfund.vc +49 173 975 1021Thank you!