In the world of venture capital, every decision counts. In this landscape of calculated risks and high stakes, having access to reliable insights is essential. Enter the European Venture Sentiment Index (EVSI), a transformative report that is reshaping how VC investors perceive and navigate the European start-up ecosystem.

A Trusted History: The EVSI’s Origins

The EVSI embarked on its journey in the first quarter of 2020. A period fraught with uncertainty due to the COVID-19 pandemic. It was during these tumultuous times that Venionaire Capital recognized the imperative need for a comprehensive barometer to gauge the health of Europe’s dynamic start-up ecosystem. Since its inception, the EVSI has served as an indispensable resource.  It is providing a clear and informed view of the state of innovation and investment in Europe.

To be more precise, here are 7 things you need to know about the EVSI explained by Amanda Intelli, our Educational Video Expert:

Validity and Expertise: Beyond the Numbers

The EVSI report is the product of a rigorous methodology and profound expertise. Over 4,000 seasoned investors, including business angels, venture fund managers, and family offices, actively participate in the European Venture Sentiment Surveys. Furthermore, the surveys, conducted by Venionaire Capital, employ personal interviews within a focus group and a smaller control group.

The collected data undergoes meticulous scrutiny, resulting in the creation of indices for current sentiment and projected outlook. These indices weigh critical factors, such as investor willingness to invest, perceptions of startup valuations, the quality of deal flow, the level of competition, and other related factors. The outcome is not just data. It’s a robust and actionable dataset that can indicate current and upcoming preferences and behaviours of investors with regards to their investment decisions.

Your Contribution Holds Significance

You may wonder why your participation in the European Venture Sentiment Survey is vital. The answer is clear: your insights are invaluable. As VC investors or Business Angels, your perspectives and experiences within the start-up ecosystem carry substantial weight. By actively participating in the survey, you directly influence the accuracy and relevance of the EVSI, shaping the trajectory of European venture capital.

A Benefit Beyond Borders

The influence of the EVSI transcends individual contributions, benefiting the entire European ecosystem:

Investors Gain Precision: The EVSI aligns your perspectives with market sentiments, enabling you to benchmark your outlook against peers across regions and industries. This empowerment leads to more informed investment decisions and enhanced risk management.

Start-ups Flourish: For start-ups, the EVSI is an invaluable compass in the turbulent seas of entrepreneurship. It offers insights crucial for international expansion, fundraising readiness, and strategic decision-making in challenging economic climates.

Industry-Wide Insights: While other indices may have a regional or investor group focus, the EVSI provides a comprehensive view of the European venture landscape. It encompasses diverse economic regions and various start-up sectors, making it a go-to resource for industry-wide insights.

Unlocking the Future of European Venture Capital

In the data-driven world of VC investing, the European Venture Sentiment Index is more than just numbers. It’s a strategic guide and an essential resource for the VC community. By actively contributing to the EVSI, you become part of a movement that is driving innovation and growth within Europe’s start-up ecosystem.

In a Europe-wide, quarterly survey, we assess the current sentiment of venture capital investors and business angels. Furthermore, we assess their current outlook for the coming quarter. Unregulated private investors (such as family offices, high-net-worth individuals, and top-managers), as well as regulated (institutional) investors have a strong impact on the speed of development and disruptiveness of European innovation. On the other hand, European and regional governments have implemented a range of mechanisms, designed to support and foster innovation in specific fields and encourage private co-investments. It is a rather untransparent market, where dynamics of valuations, the climate to raise funds, and only very active investors sense the quality of deal flow in all kinds of stages, regions, and industries.

Join the conversation, share your insights, and embrace the power of informed decisions with the European Venture Sentiment Index.