Profitability of venture capital investment in Europe and the United States

Author (Corporate)
Series Title
Series Details No.245, March 2006
Publication Date March 2006
ISBN 92-79-01186-3
ISSN 1725-3187
EC KC-AI-06-245-EN-C
Content Type ,

This paper examines the profitability of venture capital investment in Europe and the United states. It highlights the unfavourable profitability differential of European venture capital investment in comparison with the United States. The investment performance measures used are the internal rate of return (IRR) and investment multiples.

The analysis covers aggregated industry returns and venture capital funds’ returns aggregated by vintage year. It relies on the VentureXpert private equity and venture capital performance database, maintained by Thomson Venture Economics. It also considers developments in the private equity and venture capital markets in Europe and the United States.

Source Link http://ec.europa.eu/economy_finance/publications/publication_summary802_en.htm
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