This is a guest post by Paul Jozefak of Neuhaus Partners, commenting on the release of a working paper put out by the European Investment Fund, a major LP in Europe. You can follow Paul at his blog or on Twitter.
The European Investment Fund (EIF) put out a working paper [PDF] recently that initially sounds like bad news. Fortunately, for those of us in the market long enough, it's actually good news. As a side note, I'm glad to see this paper come out from the EIF. For those of you not in the know, they are one of the largest limited partners (LP's: investors in venture capital funds) in Europe and are basically in almost all the funds throughout the market. Hence anything from them is going to be based on information that truly represents the situation in Europe.