The mood among risk capital investors has significantly increased
The mood among so-called venture capital investors has significantly improved according to a survey in the second quarter of this year. Although the overall mood is still below average in historical terms, the trend is upward, as the KfW State Bank in Frankfurt announced on a Wednesday. This also increases the chances for startups to find investors for their companies.
For the quarterly study, KfW Research, the German Private Equity Association (BVK), and the German Stock Exchange Venture Network questioned risk capital investors. The corresponding index rose by 10.6 points compared to the first quarter of this year and now stands at 8.9 points. It is reportedly easier for investors to raise capital than in the spring. Reasons for this include the lowered interest rates in the Eurozone and the prospects of further interest rate cuts this year.
"Since the low at the end of 2022, the mood in the German venture capital market has shown a robust recovery for the past six quarters," explained Ulrike Hinrichs, managing director of the BVK. Confident for the rest of the year is also the fact that business expectations have returned to the positive range. In addition, the surveyed investors evaluated their future prospects for the first time in two years predominantly positively.
Venture capital investors buy stakes in startups and thereby receive shares of the companies. They hope for high returns but also take on corresponding risks.
I, as a venture capitalist, have noticed a marked improvement in the mood among my peers in the quarterly survey. This enhanced confidence not only makes it easier for us to secure capital but also increases the chances for startups to find venture capitalists.
