Is European venture capital entering it's next phase?
On our SuperVenture podcast, we sat down with Bjorn Tremmerie, Head of Technology Investments, European Investment Fund and Joe Schorge, Founder and Managing Partner, Isomer Capital, who shared valuable perspectives on market cycles, fund performance, and the future of European tech.
Key takeaways from Joe and Bjorn:
The cyclical nature of venture capital
Joe Schorge, Founder and Managing Partner at Isomer Capital, offered a measured optimism about European tech despite current market challenges: "Despite prolonged exit market closures, the underlying strength of European tech portfolios remains impressive - with wonderful company growth, super products, and a global customer base." Joe emphasized that venture capital inherently requires both time and macroeconomic stability.
- He highlighted the critical role that secondaries play in creating market liquidity, especially during periods when traditional exit routes are constrained. One particularly insightful observation from Joe was about the limitations investors face: even the most experienced VCs have limited predictive power at early investment stages, underscoring the importance of portfolio diversification and patience.
European VC performance: Data-driven progress
With our conversation with Bjorn Tremmerie, Head of Technology Investments at the European Investment Fund, we gained access to exclusive performance data that paints an encouraging picture for European venture capital. Bjorn revealed remarkable progress in European VC performance metrics:
- Top European funds are now delivering DPIs of 13.4x. This represents dramatic improvement from just 1.4x eight years ago. "Volatility is actually a moment where a lot of money can be made," Bjorn noted, suggesting that current market conditions, while challenging, present significant opportunities for well-positioned investors.
Europe's push for technological sovereignty
Beyond performance metrics, Bjorn discussed Europe's strategic initiatives around technological sovereignty, with particular emphasis on:
- Defense tech investments
- Dual-use technologies with both civilian and military applications
- Building resilient European technology infrastructure
This focus on sovereignty represents a significant shift in European investment priorities, potentially creating new opportunities for startups operating in strategic sectors.
Looking forward
Both conversations highlight a maturing European venture ecosystem that has made remarkable progress despite periodic market challenges. The combination of improving fund performance metrics and strategic focus on technological sovereignty suggests European VC is indeed entering a new phase of development.