Venture capital is now finding a new home in Europe, having been dominantly in the U.S and Asia markets. Tech giants are searching all over Western Europe for the most promising tech outfits. Google, Salesforce.com, Intel, and Microsoft are scouring for data mappers, game developers, mobile payment firms and cloud software makers in Europe.
One reason that is given for the sudden interest in Europe, an area not particularly known for game-changing innovation, is the lower cost of startups in the region. This is the case in cities like London, Berlin, Stockholm, and Paris. This is attracting large companies looking for well-educated and talented employees, but at a lower cost than in the U.S.
With the need for scaling up and growth, Europe has realized the great need for American money. This is also going down well with American venture capitalists. John Somorjai, the man in charge of running Salesforce Ventures, announced in October a commitment of $100 million in the region.
The sudden interest will bring much-needed help in the region. Startups have traditionally been taking a long time to make sales amounting to 100 million Euros. This is a process that should take five years according to venture capitalists.
However, the startup scene in the region is still in its infancy, and growing pains are evident in the industry. This is evidenced by the postponement of initial public offerings by two corporations, all due to volatility in the European market.
Germany’s chancellor Angela Merkel has voiced optimism and support for entrepreneurship in Germany. She is also in support of the creation of digital services by players in Germany.
Highland Capital Management is a venture capital firm that enjoys excellence in the financial services it offers. Since its inception in 1993, the firm has been involved in the management of billions of assets, with the hedge funds under its management scooping highly-coveted awards.
James Dondero is the man at the helm of Highland Capital. Jim is a co-founder of the firm and also serves as its President. Jim’s vast experience spans over 30 years in credit and equity markets.
Jim undertook his undergrad studies at the University of Virginia, going on to graduate with the highest honors. He has gone on to enjoy great success as a hedge fund manager and as the President of Highland Capital Management.
The original article can be found here.