European Venture Capital Market: Scaling Beyond Current Boundaries

European Private Equity & Venture Capital Association (EVCA): An EVCA Special Paper

52 Pages Posted: 16 Apr 2008

See all articles by Gerard George

Gerard George

Singapore Management University

Eva Lutz

Heinrich-Heine-Universität Düsseldorf, Endowed Chair in Entrepreneurship/Entrepreneurial Finance

Date Written: October 2007

Abstract

This study systematically documents the perceptions of LPs, venture capitalists and entrepreneurs and their views of the trends and challenges facing the European venture capital market. The interest from LPs in European venture capital funds was found to be neutral to marginally negative because of historical returns. However, buoyancy in the supply of high quality opportunities at reasonable valuations has the potential to improve this outlook. The findings suggest that European venture capitalists still face structural barriers in the form of heterogeneous consumer preferences, improving but weak exit and fundraising environments, and the scarcity of LPs of significant size. The study revealed that successful venture capitalists tended to build scaleable businesses, either global or European which improve the potential for returns. In addition to having an aspiration to build global companies, venture capitalists with entrepreneurial, industry and investment experience with access to a rich professional network were top performers.

Keywords: Venture capital, new venture growth

JEL Classification: G24

Suggested Citation

George, Gerard and Lutz, Eva, European Venture Capital Market: Scaling Beyond Current Boundaries (October 2007). European Private Equity & Venture Capital Association (EVCA): An EVCA Special Paper , Available at SSRN: https://ssrn.com/abstract=1120245 or http://dx.doi.org/10.2139/ssrn.1120245

Gerard George

Singapore Management University ( email )

469 Bukit Timah Road
Singapore 912409
Singapore

HOME PAGE: http://www.smu.edu.sg/faculty/profile/118836/Gerry-GEORGE

Eva Lutz (Contact Author)

Heinrich-Heine-Universität Düsseldorf, Endowed Chair in Entrepreneurship/Entrepreneurial Finance ( email )

Universitätsstr. 1
Duesseldorf, 40225
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
364
Abstract Views
2,626
Rank
156,851
PlumX Metrics