Germany Attracts More Venture Capital than the UK in Q2 2013

According to data from Dow Jones VentureSource — driven mainly by Berlin, which is trying hard to be one of Europe’s leading tech hubs German venture capital has been more popular and has attracted more business than UK in the second quarter of 2013.

Germany was the favored destination for equity financing in Europe in the three months to June, taking a 20% share of all investment into European venture capital-backed companies. The country received €273 million ($362 million) for 67 deals, beating the U.K. with €211 million ($279 million) for 77 deals. Dow Jones & Co. is the publisher of The Wall Street Journal.

Still, until a first round of exits takes place, it remains to be seen whether all those investments are worth it. Exits –- part of a changeover phase when initial investors who take high risks and finance a startup cash in and leave -– are still some way down the road.

Yet despite its unproven record, Berlin’s startup scene draws plenty of praise.

“Such an ecosystem exists in no other German city,” said Bart Markus, a partner at venture-capital firm Wellington Partners Venture Capital, which has offices in London, Munich, Palo Alto, Calif., and Zurich. “The only city that has an equivalent ecosystem in Europe is London –- which is expensive –- and in a smaller way, Stockholm.” Source


Tags: Venture Capital, Venture Capital firm, Venture Capital fund, Venture Capital market, German Venture Capital, UK Venture Capital, Dow Jones VentureSource, Berlin, Europe Venture Capital, Dow Jones & Co., Bart Markus, Wellington Partners Venture Capital, London, Munich, Palo Alto, California, Zurich, London, Stockholm.

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