
Venture away
Let’s face it, European venture has not got the best standing with global LPs – a result of the tech bubble bursting a decade ago. Although the market should be defined as maturing by now, such generalisations are not easily applicable to a continent so diverse.
Let’s face it, European venture has not got the best standing with global LPs – a result of the tech bubble bursting a decade ago. Although the market should be defined as maturing by now, such generalisations are not easily applicable to a continent so diverse.
The markets on this side of the pond are simply not a homogenous block, and while venture activity in the UK, France and Germany is certainly more prominent, some industry experts contend that, in comparison, the Benelux venture market has shown less volatility over the past seven years.
Indeed, the region has often been associated with first-class technology and life sciences-related companies, and with good reason. Half of the deals in the March issue of this journal are either in the biotechnology or software sub-sectors.
It has often been remarked that the quality of academic research in these sectors is particularly high in the region. The track record is certainly present, as indicated by figures from Life Science and Health – a combined initiative for and by all interested parties in health-related life sciences in the Netherlands – which saw that the number of companies operating in this sector exceeds 900, generating a turnover just less than €16bn.
Similarly, a strong entrepreneurial culture and the need to expand geographically – given the limited size of local markets – are also likely to result in good investment opportunities. At the same time, exits such as the flotation of Belgian pharmaceutical firm Movetis in December last year show how profitable such investments can turn out to be.
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