Venture Capital

LP money coming to Europe

By November 21, 2008 4 Comments

LPs (or Limited Partners) are the people (typically institutions like pension funds and insurance companies) that invest the money in venture capital funds which then in turn gets invested in startups.  I have just returned from a week in the US where I have seen a significant increase in the number of US LPs expressing a desire to invest in Europe.  This has been a long time coming and is a welcome development as we are under-funded in this market and their capital could make a big difference.

I think it is the combination of enough evidence now that Europe works combined with the declining attractiveness of the alternatives (US venture and buyouts) that is driving this shift.