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European Technology VC Headline Transaction Index: November 2004

November 2004's results from the Headline Transaction Index confirm the previously stated trend: a second half of the year in line with or below 2003, says Go4Venture. But there's anecdotal evidence that industry participants are gearing up for a strong 2005.

Mainstream publications are catching up with this more sober mood with Stuart Watson of Ernst & Young’s London-based venture capital advisory group being quoted in November as saying: “Venture capital activity has stagnated and, until we see good quality exits (..), confidence will remain fragile”.

Interestingly this comment comes at a time when we at Go4Venture are starting to feel much more bullish for next year. Nothing is showing through the figures yet but there is an accumulation of anecdotal evidence that industry participants are gearing up for a strong 2005.

Data points include:

• We’ve had more referrals from VCs for refinancings in the last two months than for the last two years. Admittedly Go4Venture’s higher profile may explain part of the result. Still we believe the trend is real.
• We see more forward planning from entrepreneurs and their investors, some anticipating fund- raisings for 12 months hence. This is an encouraging change as it allows advisers to get to work with the team well ahead of the actual need, making for a smoother process and a better alignment of business and financing objectives.
• We start seeing much more aggressive investing in general, suggesting a more bullish outlook from investors. Internet business models are coming back into fashion with more initiatives in the ecommerce area (after all Kelkoo is still the largest European tech M& A this year).

We also see a re-emergence of technology-based alternative carriers, with projects requiring substantial financings, well above that of your typical European technology company.

Click here to view the full report - November 2004 (pdf 92kb).

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About Go4Venture:
Go4Venture is a London-based independent corporate finance advisory firm focused on providing equity private placement and mergers & acquisition (M&A) services to Europe’s leading technology companies and their investors. Our clients include: Growth companies; VC funds; Buyout funds; and IT corporates. More details can be found at www.go4venture.com

Go4Venture Disclaimer
The contents of this document are for general information and use only and are not intended to address the particular investment or other requirements of any recipient. In particular, the information provided does not constitute any form of advice, representation or recommendation regarding any investments and does not constitute an offer to buy or sell the securities of any company. This document is not intended to be relied upon in making any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision. Go4Venture shall have no liability for any errors, omissions or inaccuracies that may be contained in this document.