Workshop on the venture capital ecosystem in Europe in the area of the digital economy to explore next steps in EU policy-making
The 2nd Expert Group on the Online Platform Economy held an online workshop on June 1st, 2022 as a part of Workstream 3: Innovation and Business Models titled ‘Boosting the Venture Capital Ecosystem in Europe in the area of the Digital Economy’. This workshop was the first one of a series of workshops exploring issues related to innovation in the online platform economy.
The main questions explored pertained to the new technologies and business models with the potential of attracting investments, the role of platformisation in the decision-making process of venture capitalists, the obstacles faced by young entrepreneurs in the context of venture capital investments, and the role of policymakers in facilitating the scale-up of start-ups in Europe.
To this end, after an introduction by the Head of DG GROW, Amaryllis Verhoeven, the context and aims of the workshop were presented by Dr Doh-Shin Jeon, member of the Expert Group and the co-leader of the workstream. This was followed by a presentation by Dr Stefano Caselli (Bocconi University/Algebris) who shared insights on the key drivers of equity investment, explored the entry points to the venture capital world and discussed the current state of the industry. Thereafter, Mr Jacopo Losso (EBAN) delved into the angel investing market in Europe, highlighting historical trends and pointing out the challenges associated with angel investing in the region. The final presentation was held by Dr William H. Janeway (University of Cambridge/Warburg Pincus) who reviewed the history of professional venture capitals in Europe relative to the US, shed light on where venture capitalists have concentrated their investments, and analysed the role of the state for the supply and demand sides of the innovation economy, especially in the context of the energy transition. The members of the Expert Group and the invited speakers then discussed the nature and risks of the state’s involvement in terms of European policymaking as well as the preferences and incentives of venture capitalists and investors in general.