Amadeus co-founder talks of ‘dire’ VC market

Hermann Hauser, the co-founder of venture firm Amadeus Capital Partners, has said venture capitalists (VCs) are enduring the toughest conditions for 20 years because of a shortage of credit and a lack of exit opportunities.

Speaking at a London event organised by entrepreneurs’ network TiE UK, Hauser commented, ‘It’s dire out there. We are reducing burn rate and extending the runway [for an exit] for when the economy gets better.’

Hauser claimed Amadeus had been successful in raising funds to invest, but added, ‘For many many firms it has been extremely difficult to raise funds. It’s much harder to put a syndicate [of investors] together.’

Though Hauser said refinancing a company in the current economic climate demanded an effort nothing short of ‘heroic’, he claimed there were some compensating factors.

‘I have never seen higher quality proposals on my desk; the entrepreneurs are also there to execute these ideas,’ he stated.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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