E290 | EUVC | The Evolution of European Venture with Yaron from Target Global, Kerry from IQ Capital and Chris from Isomer
Mar 19, 2024
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Exploring the evolution of European VC with industry veterans, discussing challenges, government impact, AI, data in policies, founder needs, governance, and LP expectations. Insights into tech bubbles, cash management lessons, global growth, VC role in shaping policies, and deep tech challenges in the ecosystem.
European venture capital has evolved towards fostering innovative companies and creating new markets, reflecting a shift in the industry's dynamics.
Government interventions, including funding programs and ecosystem support, have significantly shaped the European venture landscape by providing capital and promoting collaboration.
Founders now have access to abundant resources, accelerators, and tailored support from investors beyond capital, leading to improved success rates and sustainability in the European venture ecosystem.
Deep dives
Evolution of European Venture Capital
European venture capital has seen significant evolution over the years, with industry veterans reflecting on the past developments. The growth and viability of the European venture sector have become more prominent, with a shift towards innovative companies creating new markets and technology. The ecosystem has become more cohesive and diverse, enabling a broader range of investments and fostering a balanced ecosystem across different countries.
Impact of Government Intervention on European Venture
Government intervention in European venture has played a crucial role in shaping the landscape. Initiatives like funding programs, tax credits, and ecosystem support have bolstered the growth of venture capital in Europe. These interventions have not only provided capital but also fostered a collaborative environment, attracting diverse investors and enhancing the overall success of venture-backed companies.
Role of Founders and Investors in Accelerating Growth
Founders today have access to abundant resources, accelerators, and incubators, enabling them to kickstart their ventures more efficiently. Investors, on the other hand, focus on providing value beyond capital, offering mentorship, sector-specific expertise, and networking opportunities. The shift towards tailored support for founders' needs has improved the success rate and sustainability of ventures in the European ecosystem.
LP Perspectives on European Venture Capital
Limited Partners (LPs) exhibit a growing interest in European venture capital due to strong returns, diverse investment opportunities, and the presence of hidden pockets of entrepreneurship. LPs seek transparency, good governance, value-added partnerships, and strategic insights from fund managers. The appeal of European venture capital lies in its evolving ecosystem, superior returns, and collaborative approach with investors.
Future Outlook and Partnerships in European Venture
The future of European venture capital is promising, driven by continuous innovation, strategic partnerships, and informed investments. Fund managers are increasingly focused on delivering on promises, generating high DPI (Distributed to Paid-In capital) ratios, and creating valuable partnerships with LPs. The emphasis is on fostering a shared vision, capitalizing on Europe's diverse entrepreneurial landscape, and building a sustainable and successful venture ecosystem.
00:02:28 The Transformation of European Venture Capital
00:08:57 Challenges and Misalignments in the Venture Capital Landscape
00:11:43 Navigating the Cyclical Nature of Venture Capital
00:19:35 The Impact of Government and Regulation on European VC
00:30:29 Approachability of Senior Politicians in Europe
00:30:53 The Role of VCs in European Policy and Politics
00:31:33 The Impact of AI on Society and the Economy
00:35:41 The Importance of Data in Shaping Policies
00:38:03 Changing Expectations and Needs of Founders
00:41:27 The Role of Accelerators and Incubators
00:48:44 The Importance of Governance and Board Readiness in VC
00:50:55 What LPs Look for in European Venture
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