Yesterday, the European Investment Fund (EIF) published results of the second EIF VC Survey. The study provides a detailed overview of the respondents’ state of business and market activity as well as their general perception of the European venture capital market, including policy recommendations.
This largest-ever survey carried out on European venture capital firms (774 responses from 538 firms), has revealed many interesting figures about the future of VC in the CEE region. Let's look at some of them:
1. Based on the headquarter location of the VC firm, 7 in 10 VC managers in CESEE and the South expect an improvement in their state of business over the next 12 months.
2. VC managers in DACH, France and Benelux evaluate the current fundraising environment relatively more positively, as opposed to VC managers in CESEE and the South where only 1 in 10, on balance, exhibit a positive perception. Interestingly however, when it comes to future prospects, it is fund managers from the same two regions who demonstrate the most optimistic outlook.
3. Availability of funding appears to be better in France, DACH and Benelux and worse in CESEE and the South (in CESEE, the availability of funding is perceived positively by only 1 in 3 GPs, on balance).
4. GPs in France are the only ones who expect, on balance, finding co-investors to become more difficult in the future; while the easiness in finding co-investors is expected to improve the most in CESEE.
5. VC managers in the South (39%, on balance) and CESEE (31%, on balance) appear to be the most optimistic regarding future investment prospects, as opposed to VCs in France (only 5%, on balance) and in the UK & Ireland (who actually expect a deterioration of investment activities in the European VC market).
6. GPs who undertake cross-border investments are more in favour of harmonisation and simplification in taxation and other regulations compared to GPs who only invest domestically. Furthermore, when the headquarter location of the VC firm is taken into account, while there is general consensus across regions that regulations should be simplified, there is greater variation in the responses concerning the element of harmonisation.
Source: EIF VC Survey 2019
Interested in getting more insights about the future of VC in the CEE region?
Then join us at Prague's opening panel discussion and learn from Guillaume Fournier (Credo Ventures), Hristo Stoykov (EIB), Rumen Iliev (LAUNCHub Ventures), Henri Tilloy (Partech Partners) and Dusan Sevc (Deloitte).
Guillaume Fournier, Investor @ Credo Ventures
Guillaume started his career with Goldman Sachs in Boston facilitating securities lending transactions. After a move to London he spent three years with Kaiser Associate’s UK office leading engagements for various Fortune 500 companies, mainly in the healthcare and FMCG space. In 2014, he made the jump to Venture Capital, first at Athene Capital in London and then at Credo where he has led or co-led 9 deals and counting since 2016.
|Hristo Stoykov, Head of Growth Capital and Innovation Finance Division @ EIB
Over the last five years, he leads the development and deployment across Europe of EIB’s direct venture debt product. At present, Hristo oversees all venture debt operations of the EIB as well as various equity co-investment products deployed in partnership with private funds and strategic investors. Hristo’s team invests between EUR 500m and EUR 1.0bn per annum in innovative, venture-backed business across Europe.
|Rumen Iliev, Partner @ LAUNCHub Ventures
Rumen is a partner at LAUNCHUB Ventures – an early stage venture fund focused on investing into technology companies in South East Europe since 2012. Rumen is a generalist; focused on making investment, working with portfolio companies on growth, funding and also on exits. Rumen holds a Msc in Finance from the University of Economics, Prague, the Czech Republic, and a MBA from the IEDC - Bled School of Management, Slovenia.
|Henri Tilloy, Investor @ Partech Partners
Henri is a Series A/B investor at Partech and mainly focuses on tech startups based in France and CEE. He is a board observer at Bitrise, Platform.sh, Bearer.sh. Before joining Partech, Henri was a data scientist at a successful adtech startup in Paris, where he worked on an intense high-traffic real time infrastructure, and as an engineer/business analyst at Orange Silicon Valley in San Francisco.
|Dusan Sevc, Partner @ Deloitte
Dusan is a Partner responsible for M&A and delivery of financial due diligence services. He has coordinated projects in various industries including manufacturing, healthcare, energy, airlines and real estate on both sell- and buy-side and for clients ranging from small strategic buyers to large PE funds. In the many of Dusan’s deal experience, his work has addressed not only accounting diligence and SPA advisory, but also management of other services including tax, human capital and IT.
We’re only scratching the surface in this newsletter. Join us in Prague and learn what is really preoccupying CEE’s VC investors over the next months.
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