Q&A with EVCA's Dörte Höppner

Amy King: What role could corporate venture capital play in Europe going forward? What is EVCA doing to bring these cash-rich players into the European ecosystem?

Dörte Höppner: Presently corporate VC funds account for 7% of all venture capital investment activity but it is becoming increasingly relevant, as a lot of corporates are coming back to venture capital.

Their involvement is great for the ecosystem as a whole. They can act as co-investors for traditional venture capital firms. They can also support certain sectors, like biotech, where long lead times can create challenges for traditional VC fund structures.

In recognition of their important role, we've set up the EVCA Corporate VC Roundtable alongside our VC Platform. The Roundtable provides a forum for corporate VCs to meet and discuss issues that are relevant to them but might not be relevant to the rest of the VC community.

AK: What role can the EVCA play in luring international LPs back to the asset class? Do any particular countries pose promising opportunities for VC fundraising?

DH: We help VCs promote the asset class through conferences. In December, we will be going to Asia to meet institutional investors in Seoul and Tokyo. There are major pension funds and our presence can help open doors. Fifty of our members will have the opportunity to make the case for investing in Europe, and VC. In March, we will also host our Investors' Forum in Geneva, where 200 LPs will be present.

We have published an interactive report, 'Smart Choice: the case for investing in European VC'. We also reach out to the media to promote VCs.

AK: It's a big challenge to convince new, well-capitalised investors to begin investing in venture, given the relatively small fund sizes in Europe. What can VCs do to gain the backing of big LPs?

DH: We are working with the European Commission on a VC fund-of-funds proposal, which could help bring the private sector back to venture. By entering into private/public partnerships it should be possible to broaden VC's investor base.

The good news is that the proposal has made it into the Multiannual Financial Framework (the EU budget) as an option. It's always a long process getting these things off the ground but we are optimistic.

AK: Is Europe back on the agenda for international investors?

DH: Yes, I really think it is. We host a series of EVCA Chairman's dinners with our members across Europe. In Frankfurt, we were lucky enough to be joined by a senior official from the China Investment Corporation. He was extremely bullish about Europe, saying that it's definitely the place to be and has overcome some major difficulties. And I think policymakers in Europe have shown their commitment to solving the crisis. That message has got through to investors outside Europe.

It has become clear that emerging markets have their own challenges and in that context, Europe is very much back on the agenda. We heard in a panel at the VC Forum today that family offices in particular want to be part of major growth stories, and European venture could meet that need. We now need to see more, significant exits over the next 12 months. VCs need to prove to LPs that they can generate outsized returns. With the IPO window now open again, I am confident those exits will happen and the asset class will get back on track.

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