OMERS Ventures didn’t exit Europe because of the market — but it had good reason to


Share post:

A few weeks ago, Bloomberg reported that OMERS Ventures, the venture capital firm backed by the Ontario Municipal Employees’ Retirement System, was calling it quits in Europe just four years after opening a London office, hiring a team and setting aside $332 million to invest in the region.

At the outset, it may seem as if the lackluster state of the European venture market may have motivated the exit, but it appears that wasn’t the case. Instead, OMERS’ exit was rather due to logistics related to being a solo LP operation, a source familiar with the matter told TechCrunch+.

OMERS Ventures did not immediately respond to requests for comment.

Even though OMERS didn’t leave because of how things are in Europe right now, it wouldn’t have been that surprising if it did. The startup ecosystem in Europe doesn’t look that great at the moment, with lower deal and exit activity than the U.S., which itself is struggling.

Europe had only 1,332 deals in the first half of 2023, marking a decrease of 34.2% from the second half of 2022 and a decline of 60.8% compared to the same period a year earlier, according to PitchBook. The U.S. is the world’s biggest startup market at the moment, but the difference in deal count and activity is stark, even accounting for the general slowdown: The U.S. had 6,514 deals close in the first half of 2023.

European startups also seem to be finding it hard to exit, or are at least unable to land deals at valuations they might like. Through the first half of this year, startup exits only generated €3.5 billion ($3.8 billion) in total. If things don’t improve soon, the European market will not be able to surpass, or even match, the exit volume of any year from the last decade.

Investors from elsewhere in the world seem less interested, too. U.S. investors participated in 746 deals in Europe in the first half of 2023. compared to 1,704 a year earlier, according to PitchBook data. Given how much U.S. investors have pulled back from the region, OMERS wouldn’t have been out of place had it done so because of market conditions.

Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

X will be profitable in 2024, CEO claims in tense interview

According to X CEO Linda Yaccarino, the company formerly known as Twitter will be profitable by early...

Epic asks the Supreme Court to weigh in on its beef with Apple

We haven’t heard the last of Epic’s crusade against Apple over the iPhone maker’s App Store fees. Epic...

Teamsters urge NHTSA to deny Cruise Origin exemption

The International Brotherhood of Teamsters union is urging U.S. auto safety regulators to deny a petition by...

From AI Assistant to image restyler: Meta’s new AI features

Meta announced a host of new AI-powered bots, features and products to be released across its messaging...

Regulators close investigation into Blue Origin’s New Shepard anomaly

The U.S. Federal Aviation Administration has closed the investigation into a mishap that occurred last September during...

Artifact takes on X and Threads with new Posts feature

Artifact, a platform built by Instagram’s co-founders, is launching the ability for users to make posts. Up...

Meta filmed Mr Beast, Paris Hilton and 26 more to build celebrity AIs based on Llama 2

Actors are in the middle of a major, protracted battle with Hollywood over what role AI will...

Security researcher warns of chilling effect after feds search phone at airport

A U.S. security researcher is warning of a chilling effect after he was detained on arrival at...