The Current State of the European VC Industry: Facts, Anecdotal Evidence and Future Prospects

Janina Edberg

Student thesis: Master thesis

Abstract

This research paper sets out to explore what the current situation is for European venture capital seen from the perspective of current and potential investors. The success of this asset class is highly debated, as the VC industry in Europe on the one hand is praised for having all ingredients for success but on the other hand being accused for having returns incommensurate with the high risks involved. By the use of forensic and anecdotal evidence this research paper demonstrates that VC in Europe is an asset class that has grossly disappointed in terms of investor performance. Poor returns have been detrimental to the industry’s ability to attract private capital and today the industry is dependent on investments from public agencies. Public money has enabled the industry to survive the recent post-crisis years but this paper shows how public investors impact the performance of the asset class negatively in two major ways.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2014
Number of pages94