European Investment Fund halts UK venture capital funding over Brexit
GETTY Venture funding has dried up over Brexit
France and Germany are pocketing large cheques for new tech investments as EU funds dry up for British venture capitalists. This includes large amounts of cash offered by some of the region’s largest companies such as Nokia and Renault, which are desperate to keep pace with the latest digital advances. Business data provider Dealroom said Britain — home to many of Europe’s largest venture houses, such as Index Ventures and Balderton Capital — was being outpaced by France in venture fundraising during the first half of the year, while Germany almost matched the UK in new investments over the same period.
We’re in a messy, awkward situation Simon Murdoch
The Dealroom report showed French venture houses raised £1.7billion during the first six months of 2017, or more than triple what they had raised over the same period last year. That compares with £1.6 billionfor their British-based counterparts during the six months through June 30, whose fundraising efforts declined by around 50 per cent compared to the first half of 2016. German venture capital funds raised £1.3billion, an 84 per cent jump, over the same period. Simon Murdoch, a partner at Episode1 Ventures, said: “We’re in a messy, awkward situation. “There’s massive uncertainty for the next three to five years.”
GETTY France and Gemany are now getting the lion's share of venture cash