Europe has started deploying the largest venture capital fund ever created in the region, in its latest attempt to create health and deep-tech startups that will rival the U.S. and Asia.
Hedge funds focused on Asia are predicting a surge of new money from North America and Europe as investors move away from overvalued U.S. assets to tap the early pandemic recovery in China and other parts of the region.
The end of 2020 saw the venture capital market in the U.S. booming. These 'high spirits' have quickly spread to Europe in early 2021 and the market has gone crazy.
After digging into the U.S. venture capital results from last year with an extra eye on fintech and unicorn investing, one trend was clear: venture capital is getting later and larger (as expected).
Undeterred by Brexit or the Covid-19 pandemic, technology firms in London attracted $10.5 billion in venture capital money last year, a new record for the U.K. and Europe.
UK technology companies attracted a record $15 billion in venture capital funding in 2020, including the creation of seven unicorn firms. The firms raised more money from VC investors than the rest of Europe combined.
Asian and North American private equity funds suffered heavier losses during the first quarter of this year than their European peers but bounced back in the second quarter whilst Europe continued to struggle.
Steve Schlenker, Managing Partner of DN Capital, reflects on the investment: "When we led Auto1's Series A round in 2013, a number of other venture firms passed on the company. Of course, the used car market was huge - over EUR300 billion-a-year in Europe alone.
Venture capital firm Sequoia famously once only backed startups within bicycle distance of its Silicon Vally offices. Now the firm's investing heavily in its European presence.