Investment in early stage technology companies has grown in Europe according to a quarterly review released by Calibre One.
However the Index also reveals that the total number of venture capital investments in both North America and Europe has declined, which provides further evidence that confidence has yet to fully return to the sector following the recession. In North America there has been a decline in both total number and total amount of tech investment in Q2 2010.
In Europe after an encouraging start to 2010, the amount of venture capital in Europe has continued to grow into the second quarter of the year, with the total amount invested in European companies rising from US$632m in quarter one 2010 to $740m in quarter two. However the total number of investments has continued to decline, falling from 178 in quarter one to 144 in quarter two. In terms of the total number of North American investments, these fell from 496 in Q1 2010 to 333 in the second quarter.
The Cleantech sector has shown good growth, with solar demonstrating a resurgence, as well as there being a large number of follow on rounds. The relative inactivity of Europe’s VCs seems to have offered opportunity for US based funds to make some interesting investments into some of the region’s top-rated start-ups including a $10m round for Huddle.net led by Matrix Partners, and a $7m round into Criteo led by Bessemer Venture Partners.
Commenting on the findings Philip Boyd, Partner at Calibre One London, said, “As the venture capital industry recovers, we’re seeing a new optimism emerge led initially in the US and now filtering through to the European market as well. VCs are still being cautious with their investments but optimism is growing. As a business we are seeing an increase in US companies expanding into Europe, and European businesses looking to strengthen their domestic management teams and expand internationally. ”