HACKER Q&A
📣 wuschel

Effect of growth in the number of VC/VB type investors in EU?


There seems to be a lot of new institutional investors. Is there a cambrian explosion early stage VCs/VBs/corporate innovation organisations in the EU and elsewhere?

What is the your take on this phenomenon? What does it mean for deal sourcing, problem white space, market saturation, et cetera. Where does the money come from (e.g. is this structural support for the state?) How is the situation in the US/South America/Asia?


  👤 mdifrgechd Accepted Answer ✓
Is there something you can point to to make what you are saying more concrete?

My hypothesis (that in NA centric but may apply globally) has two parts:

1. Evolution of startups from entrepreneurs with an idea to an extension of corporate r&d / innovation, where startups are given money to ideate instead of to build an existing product.

2. junk bonds -> dot com -> cdos -> vc funds. Money chasing high yields