German venture capitalists invested 3.766 bln euros in 2004

Germany’s private equity (PE) market is regaining momentum, with the houses operating in this segment investing EUR 3.766 bn in 2004. This is 50% up on the year-earlier figure. In volume terms, all segments (early-stage and later-stage venture capital as well as buy-outs) showed gains over 2003. However, the investment focus shifted further away from start-up phase towards later-stage financing. This trend has been in place since 2001. The early-stage share fell again to 9.4% (12.1%). Expansion financing reached a share of 16.2% (15.5%). The other segments of later-stage venture capital – replacement, turnaround and bridge capital – increased to 3.0% (1.8%). The buy-out segment remains dominant with 71.3% of PE investment (2003: 70.7%).

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