London has been the undisputed European technology centre. Until now. Our view is Berlin will rapidly begin to take over, and in 10-15 years we will see the Berlin cluster as Europe’s technology hot-bed.
Confusion reigns about the impact a hung parliament will have on business confidence and, of course, whether the nation’s plans for Brexit will change. Naturally, this concern is magnified for sectors driving UK economic growth, with the tech and financial sectors foremost among them.
Since 2011, $60B of VC investment has gone into fin-tech globally. That’s 7,000 funding rounds, a staggering collective commitment by the venture industry to the future disruption of banking, trading and payments.
Amid the hype around Europe’s surging tech market, with talk of Silicon Valley losing its lustre to new hubs like London or Berlin, comes a sobering long term trend that suggests the complete opposite is in fact the case.
In recent weeks on both sides of the Atlantic ‘gig economy’ companies have consolidated at an accelerating pace. IAC has led the wave, acquiring Angie’s List after two years of courtship for $500m, after buying a smaller UK business only a few weeks before.
While venture investing outside the US has come a long way in recent years, our analysis shows it remains an entirely different industry than US VC.
We are in a perverse moment in the global venture capital industry: VCs are fast coming to resemble private hedge funds, and the more money they are able to raise, the worse-off startups are becoming. Capital is flowing into funds of all types, yet the rate of investment is shrinking rapidly.
The recent bankruptcy of online auction house Auctionata Paddle8 and the very public failure of the UK’s ‘challenger’ Tandem Bank to close its Chinese-investor round share one trait: both were affected by Chinese investors who failed to fund at the last minute.
Power management should be viewed as one of the largest single segments in the global IT industry, and a major source of future ‘unicorns’ (companies worth $1B+). We see the power sector being broken into two categories: those addressing the mobile device/network segment, and general power technologies for other applications.
Tesla’s $48B market value has just surpassed Ford’s $45B. This based on Tesla’s 76,000 vehicles vs Ford’s 6,600,000 vehicles. No thats not a typo, those are the numbers.