Follow Up Friday: European Investment Fund Analyzes Venture Capital Investments

The European Investment Fund (EIF) supports venture capitalists across Europe. Its publication, “The European venture capital landscape: an EIF perspective Volume III: Liquidity events and returns of EIF-backed VC investments,” studies the investment performance of over 3,600 EIF-backed venture capital investments made from 1996 to 2015. Its primary goal is to identify the effects of the EIF’s venture capital activity.

Results across venture capital investments are wide ranging with 4% of exits returning more than five times the investment and generating 50% of the total aggregated proceeds. Among these successful exits are 152 company IPOs of EIF-backed start-ups from 1996 to 2015 on 20 different stock exchanges around the world.

Investment from the European Investment Fund could be an important factor for the UK to manage as it exits from the European Union. Approximately 20% of the EIF’s investment has been in the UK and over the past four years the EIF has invested EUR2.8 billion in the UK directly. If funding ceases many venture capital firms may consider moving their headquarters to provide for continued EIF investment in EU locations. Source

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