Monday 18th Jan 2010
Calibre One News
Calibre One publishes Q4 2009 Global Tech Investment Review
The latest release of the Calibre One Index, Calibre One’s quarterly trans-atlantic tech investment review publication, is now available to view online, and in print at Calibre One’s offices in London and San Francisco.
Andrew Banks, Partner said, “In EMEA the level of activity experienced in Q3 2009 was sustained in Q4 2009, despite the average investment value decreasing. However, the reality is that more early stage and growth businesses have secured funding than at the start of 2009. This indicates a positive upward trend for both investors and entrepreneurs in the region and is matched by a strong sentiment in the market that the bottom has been passed and a track back to growth has begun.
The continued influx of capital has begun to turn portfolios once more, and we are increasingly hearing of planned IPO’s coming back on stream, acquisitions being closed, exits finalising and growth firms undertaking significant investment rounds. Whilst there is still a long way to go, these are all positive signs and have been reflected by our clients seeking to strengthen and develop management teams within the EMEA region. We all look forward to an enjoyable and exciting year ahead.”
Ed Lauing, Partner commented, “2009 closed with a bang compared to 2008. In Q4 of 2008 there was a radical drop in revenues in many companies as a soft economy turned into a full-blown worldwide recession – especially in the U.S. With sales in young companies either absent or sporadic, venture investors ordered companies to “stretch cash”. That tone truncated investments radically.
Now, a year later, combined new and follow on rounds in the U.S. have tripled to 386 deals, and the amount of money invested in Q4 alone is two and a half times greater than last year’s Q4. This reflects the renewed confidence level of investors, buoyed by sharp sales increases in their companies. Our clients are now speaking with us regularly about their expansion plans for 2010. Based on their input we think 2010 is shaping up to be quite a comeback year.”
The Calibre One Index is produced quarterly, every January, April, July and October and can be found at Calibre One’s website (www.calibreone.com). It is also regularly blogged about at TechCrunch (http://uk.techcrunch.com).
