European VCs nab >10X return on 9% investments

 

What the numbers say: European VC firms secured more than 10x return on only 9% of their investments, per the Practices of European Venture Capitalists report published by Calameo. Meanwhile, 45% of investments yielded returns less than 2x the initial amount.

Relevance: European VC firms backed only 6% of the 851 investment proposals they received on average. Government VC firms were more likely to make investments than independent VC firms, as the former's primary focus was on job creation rather than return on investment. As a result, government VC firms had higher failure rates of 33% and lower exit multiples than traditional VC firms. 

Why it matters: In the survey conducted by Calameo, 96% of European VCs identified a competent management team as the most critical factor for a startup's success. A mere 12% of respondents believed that a VC's contribution significantly impacts a startup's success.

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