We can raise funds, German VCs say – but investor confidence in Europe still low



German venture capitalists' confidence in their ability to raise funds is way up but overall investor confidence in Europe remains low, according to a just-released joint report by Deloitte and the US National Venture Capital Association.

The Global Venture Capital Confidence Survey 2013, carried out in May and June this year, brought in responses from 403 investors around the world. It's a voluntary survey and weighted towards the US (35 per cent of respondents), which skews the results somewhat. Still, there's a number of juicy findings to mull over.

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Investor confidence in Europe remains low

Investors are more confident investing at home than abroad and that seems to apply regionally as well. German VCs topped the chart for confidence investing in Europe with a rating of four out of five ("most confident").

Overall investor confidence in Europe remains low (down three per cent to 2.44). US VCs – the holy grail of fundraising for many an ambitious European startup – gave the region a rating of just 2.15, about the same as last year.

In other regions, overall confidence investing in Latin America dropped five per cent to 2.95 and rose two per cent to 3.42 in Southeast Asia.

Global Venture Capital Confidence Survey 2013

Germans most confident investing in Germany

German investors appear extremely confident investing at home (4.11). Only nine respondents were from Germany, which may give too much weight to an over-confident few. Overall confidence in Germany stayed relatively flat, up just two per cent to 2.97.

Asked how confident they were in the ability of the home industry to raise funds from domestic limited partners (LPs), German investors weighed in with an average rating of 3.22 – up 41 per cent on last year and the third-highest rating overall. Confidence raising funds from foreign LPs is also up, rising 15 per cent to three out of five.

Global Venture Capital Confidence Survey 2013

Confidence investing in the US high but down in Brazil and China

The US topped the overall confidence scale at 3.79, up four per cent on last year. That result is probably skewed by the disproportionately large number of US respondents – remember, investors tend to be more confident investing at home than abroad.

Overall confidence investing in the UK, Australia, Canada and India stayed flat (at ratings of 2.9, three,  3.26 and 3.17 respectively). Confidence in Brazil and China dropped but is still relatively high, down six per cent each to 3.33 and 3.26.

Check out the full report including methodology here.

Featured image credit: Flickr user David Goehring


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