The VC market may be shrinking in the U.S. but there are still opportunities in Europe. So says Fergal Mullen, a General Partner in Highland Capital Partners, which is a VC firm with $3 billion of committed capital in more than 200 companies. Mullen heads up Highland’s activities in Europe. I talked to Mullen about why the fund is expanding in Europe (Highland just added a new partner to bolster its Geneva office) and the special issues VCs face there.
Although the economies of Europe and the U.S. are similar in size, there is a huge discrepancy in the VC markets. The European VC market is only about one sixth of the size of that in the U.S. Mullen says that traditionally the U.S. VC market has been over-invested, while Europe’s is under-invested. As a result, a massive correction has been happening in VC funding in the U.S., including a 50-60% drop in the last year alone. Europe, in comparison, still has considerable space to grow, and according to Mullen, the VC market there should be of the order of $8-10 billion, rather than the current $6 billion.
To read the full, original article click on this link: Games, money and shopping: VC investing in Europe | VentureBeat
Author: Ciara Byrne
