Guide to Venture Capital Firms and Funds in Europe

Venture capital - Europe business expansions need it. Europe is fertile territory for entrepreneurs seeking investors and venture capital firms. Europe is home to companies that have received more than $4 billion in European venture funds since 2006. However, European venture capital firms are selective about the companies they will fund. Only the most promising and viable businesses can secure European venture capital funds.

Venture capital companies, like Luxembourg’s Mangrove Capital, are always willing to take a gamble on a fledgling, yet viable, enterprise. In addition, European stock markets have rolled out the red carpet for venture capital firms. Europe’s market for initial public offerings topped $67 billion in 2007. As a result, European venture capitalists actively look to invest their money in companies that have the potential to go public. In order to attract venture capital firms in Europe, you will need to:

1. Identify the European venture capitalists who will be most interested in your company.
2. Research the history of European venture funds for companies similar to yours or in a similar business sector.
3. Write an air-tight business plan that European venture capital firms will want to finance.

Action Steps
The best contacts and resources to help you get it done

Locate the countries where there are a lot of European venture capital funds

Europe has a large, growing number of venture capital firms. Europe has seen more than 1,000 deals recently through European venture capital funds. The top three countries with the most venture capital firms and funds in Europe are Great Britain, France and Germany.

I recommend: You can start researching European venture capital firms through the European Venture Capital Association or by you can use VentureSource powered by Dow Jones.

Track trends in European venture capital

Europe-based venture capitalists are highly selective about funding companies in an oversaturated market. European venture capital firms are big on Web service companies, as well as firms in the energy and agriculture sectors.

I recommend: VC Opportunities in Europe and Venture One are two good resources for tracking European venture funds.

Learn more about individual European venture capital firms

By finding out everything you can about European venture capital companies, you can tailor your sales pitch to specific European venture capitalists.

I recommend: Start with Benchmark Capital and Truffle Capital. These two European venture capital companies target businesses in the information technology, energy and life sciences sectors. Y Europe is a European venture capital firm that specifically funds brand new start-ups involved in communications and security, enterprise software, semiconductors, consumer services, mobile computing and financial services.

Tips & Tactics
Helpful advice for making the most of this Guide

• Tap more than one company for venture capital. Europe is filled with venture capital firms so that you don't have to rely on just one group of investors to finance your company's growth.

The official source of Venture Capital Firms and Funds in Europe is
the Venture Capital Firms and Funds in Europe page at Business.com