raising money several years ago for his first company, a software development firm, he tried in vain2 to get venture capital from firms of Silicon Valey. “Why bother investing in Europe when there’s too much on our own doorstep?” he was told over and over again. Muirhead, who has since taken the company public and started two others, said he doubts he would have the same problem today. Now that US venture firms have had so many failures with Internet companies, many of them are seeking opportunities abroad. Increasingly3, they are turning to Europe, which they consider underdeveloped market that has avoided the worst of the Internet boom and bust. US firms are drawn by the potential of wireless technologies, a great number of untapped4 entrepreneurs like Muirhead and easier government regulations5. And there appears to be room to grow. Compared with the United States, the amount of venture capital in Europe is tiny6. Even though the market in the United States is more mature7, it is still growing faster. In the period of two years the amount of money raised there has more than tripled8, compared with a two-fold9 increase in Europe. US funds have $35 billion of venture capital to invest – three times as much as European firms. But while the amount of venture capital has continued to fall through the first quarter of 2001, there are signs that European investors are faring10 better than their US counterparts11. The European market is not so inflated, so the fall will be less serious and painful. Equity markets12 in Europe have remained friendlier to new issues than American stock markets, providing an important means for venture capital firms to recoup13 unsuccessful investments. In the first quarter of 2001, 39 companies went public in Europe, for a total value of $8,9 billion, according to Tornado Insider, a Dutch company that tracks venture-capital investment across Europe. Though that number is down sharply from the 146 initial public offerings in the same period a year ago, it exceeds the 18 companies that went public in the United States in the first quarter of 2001. ВОПРОСЫ 1) Did Charles Muirhead manage to get venture capital from firms of Silicon Valley? 2) What kind of failures have US venture firms had? 3) Where are venture firms seeking opportunities now? 4) Have European firms avoided the worst of the Internet boom and burst? 5) What are US firms drawn by? 6) Is there room to grow? 7) Is the amount of venture capital in Europe large? 8) What market is growing faster, the market in the United States or European market? 9) What amount of money has been raised in the US? 10) Is the European market inflated? 11) How many companies went public in Europe in the first quarter of 2001? 12) How many companies went public in the US in the first quarter of 2001?
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