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The market sentiment in European private equity and venture capital: Impact of COVID-19

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  • Kraemer-Eis, Helmut
  • Botsari, Antonia
  • Lang, Frank
  • Pal, Kristian
  • Pavlova, Elitsa
  • Signore, Simone
  • Torfs, Wouter

Abstract

This paper provides unique insights into the impact of the COVID-19 crisis on the European private equity (PE) and venture capital (VC) ecosystem. It achieves this purpose in two ways. By exploiting the recent survey wave of EIF's signature BA/VC/PE MM survey series, which was launched just prior to the COVID-19 outbreak in Europe, we are able to gauge how the pandemic changed the sentiment among European fund managers. This qualitative exercise is complemented by the results from a simple time series model that simulates the potential impact of the COVID-19 pandemic on the European PE and VC markets. Our analysis provides evidence that the European PE/VC ecosystem faces unprecedented challenges in the aftermath of the COVID-19 pandemic. A strong policy response in support of the PE/VC markets is imperative, to which EIF will be an indispensable contributor.

Suggested Citation

  • Kraemer-Eis, Helmut & Botsari, Antonia & Lang, Frank & Pal, Kristian & Pavlova, Elitsa & Signore, Simone & Torfs, Wouter, 2020. "The market sentiment in European private equity and venture capital: Impact of COVID-19," EIF Working Paper Series 2020/64, European Investment Fund (EIF).
    • Handle: RePEc:zbw:eifwps:202064
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    References listed on IDEAS

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    1. Colin Mason, 2020. "The Coronavirus Economic Crisis: Its Impact on Venture Capital and High Growth Enterprises," JRC Research Reports JRC120612, Joint Research Centre.
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    Cited by:

    1. Botsari, Antonia & Kiefer, Kilian & Lang, Frank & Pal, Kristian, 2021. "Scale-up financing and IPOs: Evidence from three surveys," EIF Working Paper Series 2021/69, European Investment Fund (EIF).
    2. Krämer-Eis, Helmut & Botsari, Antonia & Lang, Frank & Mandys, Filip, 2021. "EIF Private Equity Mid-Market Survey: Fund managers' perception of EIF's value added," EIF Working Paper Series 2021/77, European Investment Fund (EIF).
    3. Kraemer-Eis, Helmut & Botsari, Antonia & Gvetadze, Salome & Lang, Frank & Torfs, Wouter, 2021. "European Small Business Finance Outlook 2021," EIF Working Paper Series 2021/75, European Investment Fund (EIF).

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