In 2013 Šmejc withdrew as a shareholder of PPF. History ĮMMA Capital was founded by former PPF shareholder Jiří Šmejc. The company currently has 3 private equity funds ( Emma Alpha, Emma Gamma, and Emma Omega) that own portfolios in consumer finance, gas distribution, lottery and gaming. and L.In a consolidated basis, excluding minority interests, Įmma Capital (stylised as EMMA Capital) is a Czech investment management company. It remains to be seen how successful VCs are in sustaining the dynamism observed in 2021, and whether this dynamism will persist and help kick start a credible alternative to bank finance in the EU.ĭemertzis, M. While it is too early to assess the fallout from this exceptional VC environment, such risks further highlight the importance of monitoring the development of capital markets in Europe.Īs the numbers in Figure 3 show, capital markets in the EU have had a very active two years but remain small in comparison to the US. Sceptics argue that this ‘competition to give away money’ (or “ capital foie gras”, as some more graphically put it) will mainly advantage men, while others believe that it will result in misallocation of funds towards businesses with no chance of survival. ![]() Reports suggest that as a result, VC funds decide on deals with less information on start-ups and viability of investment. With venture capitalists competing more intensely to seal deals in record time, entrepreneurs find themselves with increased bargaining power. Early results indicate that private investors are monitoring where the fund is investing.īut this new dynamism also comes with risks. Alongside equity funds, this instrument is also meant to provide advisers. More recently, the European Innovation Council launched an ‘Accelerator’ aimed at early-stage emerging technology. Alongside specific country initiatives, the European Investment Fund (and sub-initiatives like the European Angels Fund) have provided investment funds and technical assistance. As Europe lacks the large pools of capital available in the US through university endowments and non-profit foundations, EU government financing has been an important supplement to pension funds, sovereign wealth funds and family office capital (instrument that deals with family wealth). It is not expected that one major hub will emerge in Europe to rival, say, Silicon Valley, but a more dispersed ecosystem across different parts of Europe should be expected.īut in the EU, another factor has played a decisive role: government support in the form of financing programmes that have eased access to equity funding for start-ups. A combination of VC investors, start-ups, universities and research centres is attracting both investors and talent, creating innovation ecosystems. In a recent conference on the future of venture capital in Europe, a number of major investment areas were identified across northern Europe in gaming, clean technology, B2B software, digital health and big data. Clearly, more potentially interesting firms are looking for financing.Īs the numbers indicate, the European VC scene is becoming larger, more active and more successful. Analysts expect companies that are capable of riding the wave of innovation to increase in scale, valuation and importance. Indeed, the ability to work remotely has allowed start-up teams to be dispersed and therefore be more international. The pandemic has caused disruption to working methods. It is not just the demand for investment that has increased. And with exits still increasing, there is enough interest and ability to fund new firms. Coupled with low interest rates, investors are still seeking opportunities, funnelling funds into private companies and VC funds. The large numbers of exits in the past year has led to a large supply of capital. A report from Ernst & Young describes how the number of new initial public offerings (IPOs) worldwide in 2021 increased 64% in one year, with Europe being one of the regions breaking records. ![]() VCs exploited the favourable stock market conditions in 2021 to exit from their investments through public offerings. In the US, the S&P 500 and Dow Jones Industrial Average indices both reached all-time highs. Helped by very supportive fiscal and monetary policies across the world at the start of the pandemic, and by a surge in growth (particularly in tech companies), stock markets globally had a very good year in 2021.
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