Mitcham Associates Look to Europe As VC Investments Soar To 31%

Top Quote Venture capital raised by European startups climbed 31 percent during the most recent quarter, compared to the same period a year ago. End Quote
  • (1888PressRelease) November 06, 2015 - According to the latest numbers from the Dow Jones VentureSource report, European companies raised more than $3.34 billion in 355 deals during the three months ending Sept. 30.

    That's a slight jump from Q2 2015, when 375 companies raised $3.32 billion. But it's a big gain over the $2.55 billion raised by 353 companies in Q3 2014.

    The trends here mirror those found around the globe: fewer companies snagging bigger and bigger piles of cash.

    The bulk of the money went to consumer-related startups, with healthcare coming in second and financial tech service in third place.

    By geographical location, the U.K. topped the charts for Q3 with 87 deals for $1.04 billion. France was number two with $625 million. Germany was third with $472 million.

    Of particular interest to Mitcham Associates is the technology sector. Unlike the dotcom era when technology was isolated to a small group of web entrepreneurs, the use of smartphones, cloud computing and other trends have now spread across the general public.

    Mitcham believe that many of the latest generation of European entrepreneurs also are savvier than earlier ones, often learning directly from their successful Silicon Valley counterparts about how to run their businesses.

    Alexander Small, Mitcham's Investment Director said "Any potential downturn in the region's tech sector may flush out venture firms that are just jumping into the tech sector as the latest investment fad, however we are looking for long term investment and not just a quick hit."

    He also said "Good entrepreneurs can always distinguish between smart and easy money," even if the bubble bursts, that's not necessarily a bad thing."

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