Forum Science & Business FCRi - EY Foundation

Transcription

1 Forum Science & Business FCRi - EY Foundation How European Policy could help the Entrepreneurial and Venture Capital Ecosystems 16 th April 2015 Anne Glover Chief Executive, Amadeus Capital & EVCA Chairman

2 2014* - A stable year in a maturing industry 41.5 Bn Raised 39 Bn Invested 2

3 Overview - Fundraising * - for Europe in EUR billion 54,4 41,6 3,3 1,1 41,5 21,8 18,9 2,6 3,3 1,1 10,8 13,4 2,6 5,1 26,9 4,4 24,6 3,4 16,7 0,5 45,4 3,3 33,2 1,4 3,7 3,2 5,2 3,9 4,6 3, * Venture Capital Buyout Growth Other Total 3

4 Overview - Investments * - Market - Amount & Number of companies billion 70 Number of companies financed * VC - Amount Buyout - Amount Growth - Amount Other - Amount Total - Amount Buyout - No. of companies Growth - No. of companies VC - No. of companies 4

5 Key priorities Member engagement ~ 650 members (2/3 full members) ~ 150 firms participate in councils, roundtables and working groups ~ 200 individuals donate time pro-bono to these activities Information and Research The European Data Cooperative Three Year Research Plan 5

6 Focus on Venture Capital In the US - Nasdaq has reached the previous dotcom high Several $multi-billion exits and pre-money financings have happened, and journalists are beginning to speculate about a new tech bubble 6

7 Focus on Venture Capital In the US - Nasdaq has reached the previous dotcom high Several $multi-billion exits and pre-money financings have happened, and journalists are beginning to speculate about a new tech bubble 7

8 Focus on Venture Capital In the US - Nasdaq has reached the previous dotcom high Several $multi-billion exits and pre-money financings have happened, and journalists are beginning to speculate about a new tech bubble 8

9 Europe has generated many $100m+ VC backed exits in 2014 M&A IPO Source: EIF 9

10 .yet fund-raising in Europe is only creeping higher 75% funds < 82m VC Funds with final closing * EUR million Max Top quartile boundary Bottom quartile boundary Average Median 10

11 Number of funds and amount raised by fund size VC Funds with final closing * In six years - only 49 funds (20%) have raised more than 100m, the critical size for institutional investment Number of Funds Amount raised at final closing (in million) < 25m 25-50m m m m m 11

12 Share of non-european LPs investing in European funds * And unsurprisingly, non-eu investors therefore find it hard to invest in European Venture Capital 60% 41% 46% 48% 12% 19% 8% 23% 3% 6% 14% 11% * Venture Capital Buyout 12

13 Hence the Dominance of Government Funding in VC continues. 40% 35% 30% 25% 20% 15% 10% 5% 0% * Academic inst. / Endowments / Foundations Banks Capital markets Corporate investors Family offices & Private individuals Fund of funds & Other asset managers Government agencies Insurance companies Pension funds Sovereign wealth funds 13

14 ..and contributes to the ongoing fragmentation of the market VC Funds with final closing by fund size 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% < 25m 25-50m m m m Government agencies Family offices & Private individuals Corporate investors Fund of funds & other asset managers Other institutional 14

15 Meanwhile US VC s are supporting our best companies Geographic Investment flows VC in European companies 100% 80% 60% 40% 20% European PE firm investing in portfolio companies outside Europe Non-European PE firm investing in portfolio companies in Europe Cross-border investements within Europe Domestic investments in European countries 0% * 15

16 EVCA Engagement in Public Policy on behalf of Venture Capital Support the Juncker Plan : The Fund-of-Funds proposal Allocate 250m per annum from EFSI to a private sector managed Fund-of-Funds programme which attracts private capital back to VC; particularly from non-eu sources Support the Capital Markets Union: Green Paper and The IPO taskforce EVCA engagement has already influenced the questions being asked in the Green Paper, specifically: 15) How can the EU further develop private equity and venture capital as an alternative source of finance for the economy? In particular, what measure could boost the scale of venture capital funds and enhance the exit opportunities for venture capital investors? Celebrate our successes 24+ European start-ups have surpassed the 1BN USD valuation just in tech in the last 4 years Promote the outperformance of VC-backed IPOs so as to capture public investor as well as M&A interest 16