German VCs struggling to raise funds, says survey

The German Private Equity Barometer, which measures GPs' outlook on the local venture capital market, shows fundraising is more difficult than expected, with respondents displaying lower levels of confidence in the strength of the German venture scene.

Furthermore, the study suggests the discussions surrounding tapering in the US are likely to leave GPs worried about rising interest rates. The looming interest rates hike is also a factor behind the increasingly wary mood in the later-stage market, with the barometer falling by 9.7 points to 33.8 points compared to the last quarter. Moreover, general partners in the later-stage segment of the market are concerned by high entry prices for target companies, which can result in less profitable rates of return and money multiples.

The report also shows the general confidence in German private equity did not recover since last quarter's survey, published in August. The barometer fell by five points compared to Q2, leaving it at 31.5 points overall.

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• Topics
• DACH
• Fundraising
• Germany
• BVK