Effects of Venture Capital and Private Equity Funds in Austria (EcoAustria)
Summary
- Venture capital investments in Austria represent 0.02% of GDP, compared to 0.12% in Estonia and 0.633% in the USA.p.7
- In Vienna, 44 financing rounds were completed in 2021 as of July 22, with investment volume increasing from €121 million in the previous year to €464 million.p.3
- Scenario 1 estimates that adding knapp €500 million in PE capital would raise real investments by knapp 0.4% and generate €1 billion in value creation annually.p.3
- Scenario 3 assumes an increase in PE fund volume to €10 billion over 10 years, creating knapp €4 billion in value annually relative to 2022 GDP.p.4
- Buyout funds manage USD 1.645 trillion in global volume, typically charging a management fee of 1% to 3% and 20% carried interest.p.11
Key insights
- Austria's venture capital investments lag significantly behind international benchmarks at 0.02% of GDP compared to 0.12% in Estonia and 0.633% in the US.p.7
- Venture capital plays a key role in helping companies overcome the technological valley of death between prototyping and market entry.p.3
- Increasing available private equity to the EU average level under Scenario 1 would generate an annual value creation of €1 billion based on 2022 GDP.p.3
Topics and entities
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