SPEEDINVEST ON BUILDING LIQUIDITY PATHWAYS FOR EUROPE'S STARTUPS
From left to right: Oliver Holle, Lawrence Kilian, and Werner Zahnt
The long path to an exit remains a major hurdle for venture capital. With the average tech IPO now taking 14 years or more, providing timely returns to investors is a significant challenge. While US funds commonly use continuation funds to manage this, Europe's ecosystem is still catching up.
Learning from a More Mature Market
While the US market has adopted continuation funds as a standard tool to provide early liquidity and keep supporting breakout companies, Europe is still catching up. This gap puts European ventures at a significant disadvantage.
Speedinvest's Tailored Solution
To tackle this, Speedinvest has launched tailored continuation funds. This strategy provides immediate liquidity to their investors while allowing their most promising portfolio companies more time to scale. The structure creates a win-win: investors realize returns without missing long-term upside, and founders gain more time to scale without premature exit pressure.
A Deliberate Strategy for the Long Term
Unlike larger, later-stage funds, Speedinvest's seed-focused approach requires a nimble and frequent strategy. The firm has built a dedicated team to proactively create these liquidity pathways. Mastering this complex process is a critical step toward strengthening the entire European VC ecosystem.
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