The FT reported this week that 3i, a mainstay of the European venture capital industry, is exiting early-stage finance. The FT added that the move “underlines the woeful state of European venture capital”.
Faced with this situation Europe is doing what it seems increasingly programmed to do – have government (national or European) intervene.
We’ve lost the plot really, haven’t we? The targets of the Lisbon Agenda, making the EU “the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social inclusion” by 2010, look rather silly today. That title seems likely to be taken by India not the EU, but not by 2010.
Tags: 3i, early-stage, strategy
March 30, 2008 at 11:15 am |
Not really surprising.
Europe has no exits for VC’s:
- no Nasdaq like market serving to refinance at large scale potential Googles or Microsoftes
- little M&A activity (as a result of previous assertion)
in Europe you invest, but basically buy expensive glue, unless you get exits in the US (SkyPe, Business Objects…)
EU bureaucrats have to make the ecosystem complete, not just wish their recipes will work while obviously knowing that essential ingredients are missing.