Weekly round-up: crisis in European venture?

Amy King
07 March 2014

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Intel Capital's Battisti on the crisis in European venture; deals under the spotlight... Here is your weekly round-up of industry analysis provided by unquote"

Writing exclusively for unquote", Intel Capital's Marcos Battisti claimed we are experiencing the biggest crisis in European venture for a generation. Identifying a number of government agencies invested in venture funds, which currently account for around 40% of all commitments, Battisti called for an industry overhaul and new venture regulation. "Unfortunately, it feels these traditional, institutional sources of funds [endowments, family offices, pension funds, funds-of-funds] are not giving an opportunity to European GPs. However, they are more than happy to invest in the US, even with similarly performing funds. Governments could change this by introducing some new incentives: an example would be to provide an income and capital gains tax exemption to these investors when they invest in EU-based VCs. This exemption would be applicable only for them; it would not be passed on to the funds they invested in," he wrote.

unquote" took a closer look at two recent deals in the venture and buyout markets as part of our Deal in Focus series. Ireland-based implants manufacturer GC Aesthetics secured a $60m cash injection in late February from new investor Orbimed and existing backers Montreux Equity Partners and Oyster Capital. Alice Murray spoke to the company's CEO about the challenges in the highly regulated market and LPs' potential ethical concerns regarding an investment in implants. Over in Italy, unquote" spoke to Riverside partner Karsten Langer following the GP's acquisition of gelato ingredient maker Mec3. After a three-year courtship, Riverside bought the firm in yet another deal that highlights the unshakable allure of "made in Italy" brands.

That's all from me this week but if you have any comments on this week's analysis, please send your thoughts to amy.king@incisivemedia.com.

You can continue to follow me and the rest of the unquote" team via @unquotenews for all the latest private equity and venture capital updates, and of course on unquote.com.

Amy King
Senior Reporter, unquote"