Do European venture capital funds perform better than their U.S. rivals? German VC fund, Earlybird Venture Capital, just published an analysis that claims European venture capital has been producing higher exit multiples than U.S. venture capital in the last two years.
The exit multiple measures how much a fund earns when it sells its equity in a company in comparison to its original investment, e.g. 10 times as much.
“A lot has been written at a more emotional level about European venture capital. We wanted to bring it back to a more data-centred approach.” Jason Whitmire, a partner at Earlybird and one of the authors of the report, told VentureBeat. Based on recent performance, he says, “the whole industry is a ‘Rembrandt in the attic’”.
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