The Growing Need for Automation and Technology in Private Equity

October 6, 2017

The following article was featured in the September 2017 edition of Financier Worldwide. It was written by ACA's Jami Jack and Ken Harman.

It is hardly surprising that European technology investment has grown tremendously over the past few years, given the fresh wave of innovative start-ups coming on the scene each month. As a consequence, Europe is now home to a host of mature yet fast-growing technology businesses, such as Auto1, blablacar, Klarna, iZettle and SumUp. 

We are in the midst of a technology revolution where sectors such as artificial intelligence, blockchain and cryptocurrencies, enterprise SaaS, online marketplaces and platforms, mobile and broadband telecommunications and electric or autonomous vehicles are at the forefront of new product development. 

Yet VC investors are facing an uphill battle to exit their portfolio companies. They have to wait longer and longer before selling, according to research carried out by Dow Jones Venture Source. holding periods are an average of seven years, yet often investors need to exist earlier than this to return capital to their fund investors. 

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