A week ago I reported that start-ups had a hard time seducing European venture capital firms to invest in their companies. The VC’s are backing the fewest companies on record since research group VentureSource began tracking investments in 1999.
After this disappointing conclusion, it may well be time for positive news about European venture capital. Well here you go: the Financial Times reports that Telefónica, the Spanish mobile operator, will on Monday announce a €40m venture capital fund to invest in new technology companies.
This move by Telefónica is part of their strategy to increase the accessibility to new technologies for mobile phones and the Internet.
Telefónica is one of the largest fixed-line and mobile telecommunications companies in the world. They’re second in terms of number of clients and in the top five in market value. The only companies that are doing better job globally are China Mobile, AT&T and Vodafone.
[WebTipr: David Petherick, United Kingdom]