Investment in European venture-backed companies dropped by half from 2000 to 2001, when â‚¬9.6 billion were raised in 1,801 deals, according to the first joint global venture capital survey by Ernst & Young and VentureOne.
The number of financing transactions in Europe fell by over one-third, and the value of those companies receiving financing declined significantly: the median pre-money valuation of European venture-backed companies fell from â‚¬8.7 million to â‚¬7 million. While steep, these declines are less than those seen in the US, where investment fell 65%, transaction volume fell 52%, and pre-money valuations declined from $25 million (â‚¬28.5 million) to $16.7 million (â‚¬19 million) during the same time period.
For more information please visit www.ey.com.
(source: Ernst & Young)