Hi-tech comes to Europe

European investors are discovering what their US counterparts have known for years. Technology companies can provide spectacular returns. Venture capitalists and small-cap stock markets are working hard to accommodate the sector. Meanwhile, US investment banks, which honed their hi-tech skills financing the development of Silicon Valley, are making a big push across the Atlantic. Brian Bollen reports.

From Acorns to Amadeus

Raising capital through the internet

New venture capital raised in Europe € (m)

 

1995  

1996

Growth  (%)

European total

4,398

7,970

81.2

UK

1,841

3,738

103.1

Netherlands

257

1,402

444.5

France

793

1,081

33.8

Italy

264

727

175.3

Germany

210

340

61.9

Belgium

160

185

15.7

Switzerland

48

156

225.9

Norway

46

94

105.8

Spain

142

55

-60.9

Sweden

438

50

-88.5

Finland

53

47

-10.2

Portugal

86

36

-57.8

Austria

1

25

1,839.9

Greece

15

24

61.7

Ireland

12

20

58.1

Iceland

4

7

70.9

Denmark

28

1

-96.6

Source: European Venture Capital Association

“There’s never been so much interest in the hi-tech sector, and the driving forces behind that interest are not going to go away. It’s as if we’ve broken open a wall and water is flooding through it.” Easdaq vice-chairman Jos Peeters believes that Europe is rushing to follow the US into hi-tech investing – and figures from venture capitalists and bankers bear him out.

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