european venture capital. the facts. · valuations above $100m generating ~$10bn of exit value...
TRANSCRIPT
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European Venture Capital.
The Facts.
Patric Gresko
European Investment Fund
SEP Investors Forum Workshop, 25.03.2015
European Investment Fund.
Venture Capital activities.
European Venture Capital. The Facts. Patric Gresko. European Investment Fund. 2
” “
~€5bn Of
Investments
in European
Venture
Capital funds
260+ Venture
Capital funds
Europe’s Leading Developer of
Risk Financing for
Entrepreneurship & Innovation
3800+ Companies
18 Years
On European
Venture
Capital
market
EIF: an increased support to the
VC market…
3 European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
0
100
200
300
400
500
600
700
800
900
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EIF's Commitment (EURm)
Avg: EUR 400m
Avg: EUR 220m
?
… and not only financially
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More demanding and
more flexible T&Cs
New tools in the
toolbox:
• TTA
• EAF
• SIA
• Co-investments
• CoriP
• 1st closing size
• EIF relative commitment
• Better alignment of
interests
• Alternative fee and carry
schemes
• …
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
The European VC market:
mythos and reality
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The reality:
European Venture capital has
become a very compelling
investment opportunity
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
Key trends in EIF’s Venture capital
portfolio in 2014
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Double digit IRRs for
vintages 2007-2009
Oversubscribed funds
15 exits with
valuations above
$100m
generating
~$10bn of exit value
55.8% 21.3%
19.5% 26.7% 19.1%
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
It’s going North…
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90
95
100
105
110
115
120
125
130
135
Performance Index - Rebased as of 30.06.11
All Portfolio
LMM Funds
VC Funds
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
Europe is home to many global
leaders and Billion $ companies
Source: Holtzbrinck Ventures, EIF
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European tech companies surpassing ~USD 1bn valuations
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
European tech companies reaching ~USD 1bn valuations
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Music:
Games:
E-commerce:
Software:
Finance:
Europe is leading the way in many areas
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
Accelerators and incubators:
Events:
Serial entrepreneurs:
Top US VCs are also in Europe:
Public Policy:
Corporates:
European VC eco-system is vibrant and mature
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
And many others…
Niklas
Zennstrom
Brent
Hoberman
Lars
Hinrichs
Ben and Josh
White
Mans
Hultman
Successful entrepreneurs becoming VC investors
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
World-class research
Educated human capital
Substantial funding for basic R&D
Well functioning IP system
Capable entrepreneurs
Success stories raising level of ambition
Sound base of experienced VC investors
Vibrant and mature eco-system
European VC investment opportunity
based on strong fundamentals
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.
• The VC industry has not yet delivered risk-commensurate
returns…
• BasleIII, SolvencyII, AIFMD = hostile regulations for equity
investments
• EuVECA, EUSEF, ELTIF…: = market fragmentation & complexity
• Capitalise on existing well-functioning structures (SICAR-SIF)
• Lack of European corporate leadership (Apple, Google, Facebook,
Microsoft…)
• Lack of a Digital Single Market
• Early-stage entrepreneurial activity < 6% of the population
(Germany, France, Italy, Spain) - USA and BRIC 10 – 17%
But…
European Venture Capital. The Facts. Patric Gresko. European Investment Fund.