These are challenging times to be an investor. With traditional “risk free” assets like government bonds shifting from offering a risk free return to offering a return free risk and traditional risk assets such as stocks and shares consistently failing to deliver a reasonable risk premium, it’s not surprising that investors are looking for alternatives.
Venture capital is one of the asset classes investors are turning to in increasing numbers; and with good reason. History shows that it’s in the crucible of turmoil and change that the great companies of tomorrow are born.
The ongoing train wreck of the global economic crisis and the huge shifts taking place through new technologies, from the way people shop and find new services to the way that they socialise and consume media, creates both peril and opportunity.
Whilst some of the world’s most well known public companies with their outdated business models struggle to survive, for young, fast moving companies there has never been a better time to build a business. Demas Capital Partners’ business is finding and investing in those companies.
With banks refusing to lend to these young companies there’s never been a better time to invest in them. For some time now our staff have been compiling weekly data on companies receiving venture capital investment in Europe and the US. This data helps us to keep our finger on the pulse of hot sectors and new technologies and find the great companies of tomorrow long before they achieve their full potential.
The Demas Venture Capital and Angel Investment Index - http://blog.demascapital.com
From this week onwards, we will be publishing the data on our venture capital blog every week. As far as we are aware, the Demas Venture Capital and Angel Investment Index is the web’s most comprehensive free and publically available weekly monitor of venture capital investment activity.
Here are some highlights from this week’s DCP Index:
• This week saw 89 companies receiving an aggregate investment of $1.13 billion from venture capital and angel investors, equating to an average investment per company of $12.8 million.
• Companies receiving investments of between $1 million and $5 million accounted for the largest number of investments, although measured by aggregate investment received, 65% of all funding went to companies receiving between $10 million and $100 million.
• Companies at the seed funding stage received the smallest investments, with the average capital injection per company being $1,011,800, whilst companies at the Series C funding stage received the most, averaging investments of $34,800,000 each.
• As with most weeks, companies receiving Seed funding accounted for the largest number of investments (40%), with the second largest category being companies receiving Series A funding (22%) followed by those receiving Series B funding (20%).
For further detail and a full list of all of last week’s companies and how much funding they received, take a look at this week’s DCP Index at http://www.blog.demascapital.com
About Demas Capital Partners
Demas Capital Partners is the venture capital division of Demas Capital Markets AG, a 27 year old finance and investment house headquartered in Zurich. Established in 2010 to bring forward looking investors together with forward looking companies, we focus on post-seed stage investments in European technology companies requiring investments of €500k to €5M to build on their early success in large disrupted markets.