US tempted by strong European market

Current European VENTURE investment volume and value is still lower than in 1996-2000, but the sector may be set for some exciting days in 2008. A struggling US economy means European exits are performing better, increasing US investors' enthusiasm for a sector that has reached maturity.

In terms of volume, the UK is far ahead of the rest of Europe; two-fifths of all venture deals carried out in Europe took place in the UK & Ireland, closely followed by the DACH region (dominated by Germany) and Scandinavia. A tenth of deals have taken place in France, while Benelux and Southern Europe combined represent 15% of the market.

Although modest in size, funds continue attracting LPs. In Spain, Bullnet Capital, one of the few surviving venture capital houses launched in the midst of the technology boom, is raising a second fund, Bullnet Capital II, with a target of EUR30m and commitments of EUR25m. The fund has already carried out two investments including Visure Solutions (in September 2007).

Also in Spain, Angels Capital, managed by Atitlan Capital, a new player on the Spanish venture scene launched with EUR17m dedicated for investments in seed and start-up projects. It will be the largest such fund in Spain to date if it raises its targeted EUR20m.

In Italy, State Street Global Investments is raising TT Venture (EUR150m) which will invest in all development stages. At the smaller end of the spectrum, Dpixel launched Dseed, an evergreen seed and early-stage fund specialised in development projects in the internet and digital media/technology sectors.

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