Venture Capital Update（一）.pdfVIP

Venture Capital Update October 2006 Written by: Natalie Braun, Managing Director, SVB Capital and Mike Clovis, Associate, SVB Capital european venture capital: a new opportunity? U.S. vs. European Historical When eBay decided to purchase Skype Technologies SA for $2.6 billion last Venture Capital Returns year, investors around the world took note. EBay’s interest in a Luxembourg- as of 3/ 31/06 based provider of voice-over-IP services demonstrated that European startups can generate bold returns for globally minded investment partners. Before Skype and a handful of other successful deals, sending venture capital to Europe had long been considered unattractive. The venture market was nascent by U.S. standards and casualties were common, especially when the Internet bubble burst in 2000. Long-term venture capital returns in Europe have historically lagged U.S. returns. At 22.7 percent, the 10-year pooled IRR for all U.S. venture capital firms is considerably higher than Europe’s 1 5.8 percent return for the same period. A weak IPO market, limited availability of trade buyers, stringent labor laws, a perceived