Theory vs. Reality: Venture Capital in Europe

showimage Theory vs. Reality: Venture Capital in Europe

Comparison: Rank on VC attractiveness index vs. actual VC spent per capita p.a.

Verve Capital Partners publishes a country comparison study on theory and reality of venture capital investments in Europe.

In the current economic situation, the amount of available venture capital for innovative start-ups is one of the most telling metrics for the dynamics and sustainability of a country’s economy.

A study published today by Swiss Venture capital firm Verve Capital Partners (VCP) calculates the actual amount of venture capital spent per capita for each country, but goes one step further and puts the global Venture Capital Attractiveness Index by E&Y and IESE Business School to the test. VCP shows which country’s start-ups are real investor favorites.

The results of the study are surprising. The authors demonstrate that countries with an average or below-average level of venture capital spent differ significantly from their theoretical attractiveness.

A short summary of our results:

– There is no country in Europe where investors spend more venture capital than Switzerland. This is consistent with the top global attractiveness rank of Switzerland (ranking #6). Nevertheless, it would be wrong to rest on these laurels – the expansive wealth of Swiss residents bears a great potential for further growth. Unleashing this potential requires intensified efforts of Swiss politicians and start-up financiers.

– In countries such as Germany and Norway, entrepreneurship suffers from its own success, due to economies traditionally relying on heavy industry, manufacturing or wealth derived from natural resources. These relatively stable economies do not create enough pressure to innovate.

– The UK and France rank high on the attractiveness index, but are behind in terms of actual venture capital spent per capita. This results from their very centralized business powerhouses around London and Paris.

The complete study can be downloaded free of charge:

https://www.investiere.ch/blog/theory-vs-reality-venture-capital-europe

About investiere and Verve Capital Partners:

Verve Capital Partners, a Swiss AG based in Zug, Switzerland was founded in 2007. With the goal to develop and implement innovative financing concepts, in February 2010, the team at Verve Capital Partners launched investiere (www.investiere.ch) and opened a previously insulated and elusive market of innovative Swiss start-ups to the general public via an online platform.

In contrast to crowdfunding companies, investiere is a hybrid model that combines the established practices of traditional venture capital with elements of e-finance and social media. All start-ups featured on the site go through a rigorous due diligence process and investors are able to choose the start-up that sparks their unique interest.

investiere delivers its services together with its strong cultivated global network of entrepreneurs, investors, subject matter experts and partners.

Kontakt:
Verve Capital Partners AG
Steffen Wagner
Feldhof 28
CH-630 Zug
steffen.wagner@verve-capital.com
+41 44 3802935
http://www.investiere.ch