Treibstoff Venture Capital (Fuel Venture Capital): Fueling innovation and economic growth
There is a lack of venture capital (VC) in Germany, especially in the growth phase of newly founded companies. As a result, the necessary capital to establish successful companies from innovative business models is lacking. In view of the international competition between technology locations, this lack weakens the innovative power of the European economy and hinders sustainable growth. The new study "Fuel Venture Capital: How we fuel innovation and growth" by Roland Berger, the Internet Economy Foundation (IE.F) and the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften e.V. (Association of German Private Equity Firms). (BVK) analyses existing investment barriers to venture capital and explains how these can be overcome.
There is a lack of venture capital (VC) in Germany, especially in the growth phase of newly founded companies. As a result, the necessary capital to establish successful companies from innovative business models is lacking. In view of the international competition between technology locations, this lack weakens the innovative power of the European economy and hinders sustainable growth. The new study "Fuel Venture Capital: How we fuel innovation and growth" by Roland Berger, the Internet Economy Foundation (IE.F) and the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften e.V. (Association of German Private Equity Firms). (BVK) analyses existing investment barriers to venture capital and explains how these can be overcome.
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3<br />
Growth <strong>and</strong><br />
investment backlog<br />
generally do not invest more than ten percent of their<br />
fund volume in a single company, which necessarily<br />
means that the total investment per company per funding<br />
round is directly limited by the size of the fund itself.<br />
The biggest venture capital fund in the United States,<br />
Sequoia <strong>Capital</strong>’s Global Growth III fund, had already<br />
raised as much as USD 6 billion by the end of April 2018<br />
out of a total target of USD 8 billion. Europe’s biggest<br />
venture funds, Rocket Internet <strong>Capital</strong> Partners Fund<br />
<strong>and</strong> the upcoming Lakestar III fund, have each raised<br />
approximately USD 1 billion, just one-sixth of that volume.<br />
Market experts are at pains to point out that Germany’s<br />
best <strong>growth</strong> companies have every risk of falling<br />
E Startup focus: Seed <strong>and</strong> startup funding for German companies saw stronger <strong>growth</strong><br />
in the 2012-2017 period than later stage venture capital<br />
<strong>Venture</strong> capital investments in German companies by stage [EUR m]<br />
Later Stage<br />
Startup<br />
Seed<br />
+99%<br />
1,066<br />
505<br />
1,139<br />
344<br />
574<br />
205<br />
337<br />
722<br />
300<br />
380<br />
677<br />
243<br />
400<br />
849<br />
369<br />
433<br />
506<br />
703<br />
32<br />
43<br />
34<br />
46<br />
55<br />
92<br />
2012 2013 2014 2015 2016 2017<br />
Source: Invest Europe, Rol<strong>and</strong> Berger. Figures have been rounded.<br />
21
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