Web

Report: Europe VC scene catching up to US

europe vcsSilicon Valley is at the center of the venture capitalist world – but maybe not for long. And despite accusations of a struggling and limiting environment, a report from VC firm Earlybird shows that the European VC market could very well be giving the US a little competition in the near future. It’s a younger, newer atmosphere than in the US, where there is an older tradition of investment firms. Venture capitalism is relatively new to Europe, and it’s supposed to get stronger.

According to Earlybird, Europe VCs are producing higher exit multiples and lower entry valuations than the US, meaning that more stateside startups are receiving insanely high pre-IPO valuations but exiting their private stage at a considerably smaller worth in comparison to those in Europe. Sound familiar? You could probably list a few tech startups from the past year that were pegged at insanely high values and didn’t see the same numbers when they filed their S-1 forms.

In fact, since 2005 European VC-backed IPOs either matched or bested US VC-backed IPO performance. The catch is that there are simply more VC firms in the US. Our market is more mature, more expansive, and just all-around bigger. But this means that the handful of successful European VC firms are flourishing, and it has contributed to a buyer’s market. There’s a lack of confidence in investing in startups, keeping initial valuations lower and boosting capital efficiency well above that in the US. It might sound like a problem at first glance (less money, less confidence, fewer investors), but it’s actually creating a very profitable and promising situation for the European VC market.

europe vcsVC firms in Europe are much choosier than those here, and money generally only gets put into the top contenders of startups. There’s less room for waste. So proportionally, European VCs are outperforming those in the US – but that doesn’t mean their market is altogether more successful.

The US VC scene is in a period of flux, it seems, but is generally considered to still be thriving. Everyone’s got an idea and a VC firm supporting it. Unfortunately, there have been a number of flawed projects that received ridiculous amounts of financial backing (we can’t help but think of Color). Is it that we’ve been the center of digital innovation for so long that our confidence is beginning to get the best of us? Or that so many great startups have come out of Silicon Valley in the past 10 years that any company with the right buzz words can get VCs to empty their pockets? Whatever it is, it’s precisely a problem Europe doesn’t have. In comparison, European startups are receiving lower entry valuations, less cash throughout their development, and approximately the same exit value, yielding a much higher return on investment.

There’s a persisting idea that the European VC culture is less aggressive, less innovation-focused than the US, and this has limited its approach to entrepreneurship. The numbers seem to suggest that while more sensible, European VC firms are less inclined to tackle as many ideas as US firms – for better or for worse. And this could actually be a thorn in our side: We’re more willing to fund an idea, but sometimes to a fault. And while the European method appears more practical and in the long term profitable, it is undeniably a more restricted approach that can negatively impact entrepreneurs.

Cars

Porsche’s all-electric Taycan sedan will cost less than a Panamera

Porsche's Mission E concept won't change much as it transitions to a production model named Taycan that's scheduled to arrive in 2019. That means the sedan will keep the sleek design and its 800-volt charging system.
Computing

In 2018, the rivalry between AMD and Intel has become more interesting than ever

When it comes to selecting a CPU for your PC, there's no shortage of chips for you to choose from. With Ryzen, Threadripper, and Core i9 CPUs though, the AMD vs. Intel argument is muddier than ever.
Home Theater

How to buy speakers: A beginner’s guide to home audio

From the difference between bookshelf speakers and monitors to the proper way to audition, our ultimate speaker buying guide has all the information you need to create your own home audio nirvana.
Emerging Tech

Here’s how Microsoft’s Hololens is helping NASA build the new Orion spacecraft

Lockheed Martin is turning to Microsoft’s mixed reality Hololens smartglasses to help build NASA's Orion spacecraft, which could one day help rocket astronauts as far afield as Mars.
Mobile

PayPal will soon let you withdraw cash at Walmart, but there’s a catch

PayPal has teamed up with Walmart to allow its account holders to withdraw and deposit cash at the store. The service launches at all Walmart stores across the U.S. in early November, but there's a catch.
Computing

Here's how to download a YouTube video to watch offline later

Learning how to download YouTube videos is easier than you might think. There are plenty of great tools you can use, both online and offline. These are our favorites and a step by step guide on how to use them.
Computing

Your ‘Do Not Track’ tool might be helping websites track you, study says

New research from the "Do Not Track" features embedded in popular browsers are being ignored, opening up the possibility of consumers having their information targeted by specific ads based on their web histories and cookies. 
Cars

Carbuying can be exhausting: Here are the best used car websites to make it easier

Shopping for a used car isn't easy, especially when the salesman is looking to make a quick sale. Thankfully, there are plenty of sites aimed at the prospective buyer, whether you're looking for a sedan or a newfangled hybrid.
Computing

How to recover Google contacts

If you accidentally deleted an important person from your Google Contacts, they might not be lost forever. Recovering them is a fairly easy process -- as long as you do it quickly. Here's how.
Computing

Afraid that Bitcoin could be a bubble? Here's how to sell what you've got

If you're investing in cryptocurrencies, it's important to have your exit strategy in place if prices start to crash. If you've decided it's time to get out or just want to learn how to sell Bitcoins, here's how to get started.
Computing

Don't take your ISP's word for it: Here's how to test your internet speed

If you're worried that you aren't getting the most from your internet package, speed tests are a great way to find out what your real connection is capable of. Here are the best internet speed tests available today.
Web

Feed your fandom: These are the best YouTube channels for sports lovers

If you're a cable cutter who still wants to enjoy quality sports highlights and analysis, YouTube is the place to go. There are plenty of great sports-centric channels on YouTube, each of which provides great highlights and top-shelf…
Social Media

YouTube is back after crashing for users around the world

It's rare to see YouTube suffer serious issues, but the site went down around the world for a period of time on October 16. It's back now, and we can confirm it's loading normally on desktop and mobile.
Computing

Chrome 70 is now available and won’t automatically log you in to the browser

Google has officially launched Chrome version 70 on Windows Mac and Linux. The update introduces some new Progressive Web App integrations on Windows 10 and also tweaks the much controversial auto login with Google Account feature.