RT Journal Article
SR Electronic
T1 The Changing Face of the European Venture Capital Industry
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 26
OP 53
DO 10.3905/jpe.2004.391048
VO 7
IS 2
A1 Laura Bottazzi
A1 Marco Da Rin
A1 Thomas Hellmann
YR 2004
UL https://pm-research.com/content/7/2/26.abstract
AB The Survey of European Venture Capital (SEVeCa) is the largest academic study to date on the European venture capital industry, providing information on more than 1,300 investment companies, 400 venture partners, and 150 venture funds. The European venture capital industry is found to be more integrated than previously believed: 27% of all venture firms have an office in a foreign country, and 24% of investments are cross-border. Significant links to the U.S. lead to increasing emulation of U.S. investment practices. However, distinctively European aspects, such as the prominence of bank and corporate investors, do remain. The study also debunks the belief that all European venture capitalists are conservative and “hands-off.” A majority of the deals are early stage, and involvement with portfolio companies is substantial. The experience and education of of venture partners (their “human capital”) is shown to play an important role in promoting an active investment style.