VC Investment in Europe recovers...
VC investment in Europe has recovered after a record low in the second quarter but we’re not out of the woods, says Dow Jones VentureSource. Investors put $998 million (€730 million) into 201 deals in Europe overall. This is a 23% increase from the previous quarter, which was the lowest on record since Dow Jones VentureSource began reporting on the region in 2000. The UK was the No. 2 destination for venture capital behind the U.S. in Q3 with $393 million (£240 million) spent on 67 deals.
France had its worst quarter of 2009 and dropped 58% from the same period last year (55 deals), while in Switzerland, investors put $80 million (€59 million) into seven deals, on par with the previous quarter but still down on a year ago. Capital investment in Germany plummeted. Sweden had its best quarter of 2009 though venture investment was down 22%. Spain saw a dramatic 86% drop from the same period last year. Investment in the Netherlands rose 41% from the same period last year. It seems Amsterdam has startup fever.
Capital intense “later stage deals” have claimed 46% of the total capital invested, suggesting that early stage is still difficultArno Castanet, Research Manager, Dow Jones VentureSource said: “Until the liquidity and fundraising markets correct themselves, investors will continue to keep a tight rein on their investments. Investors are being very selective and only investing in the most promising companies.”
For full story please go to: http://eu.techcrunch.com/2009/10/27/vc-investment-in-europe-recovers-but-its-still-not-great-especially-for-early-stage/