The crisis is not over yet, but investors are optimistic again
Overview of European Venture Sentiment Index in Q4 2020
Three months ago, there was still a “stagnating pessimism” outlook on the corona crisis. As one of the quarterly European Venture Sentiment Reports showed, the mood of European investors was extremely poor in the third and second quarter of the previous year. On average, investors were extremely pessimistic when asked about their expectations for the next quarter.
However, the investor sentiment proved to be different in the recently published European Venture Sentiment Report for the 4th quarter. The index value is now back in positive territory and roughly at the level of the first quarter of 2020, when the crisis had not been fully unfolded yet. On average, the outlook for 2021 is optimistic too (see the graph). In the interviews conducted as a part of the survey, this optimism was primarily based on the development of Covid-19 vaccines.
“Investors are closing new deals again”
Venionaire Capital founder Berthold Baurek-Karlic comments, “We are seeing a noticeable improvement in investor confidence compared to the previous quarter, undoubtedly spurred by hopes for the rapid uptake of the Covid vaccine. Venionaire Capital has been helping networks and funds to find high-quality deals throughout the crisis. We have seen a change recently: investors across Europe are once again closing more new deals, rather than just investing in the existing portfolio. Government programs are encouraging this development. Digitization and innovation have definitely accelerated in all sectors and represent an additional growth driver – especially for tech.”
A total of more than 50 investors or investment managers (business angels, VCs, and corporate VCs) from eight European countries were surveyed for this study.
Originally published (in German) via derBrutkasten (https://www.derbrutkasten.com/european-venture-sentiment-index-q4-2020/)
