Venture Capital: A Comparison Between USA and European Funding Rounds
European University of Tirana
In this paper we have conducted a micro level analysis of 40 companies in USA and Europe that have raised Series C capital in the software industry. In this analysis we want to determine which market reaches faster the Series C founding stage and the average amount raised. Software industry is the fastest growing industry and it has an easy global reach and market opportunities. According to Statista analysis in 2018 the software industry had annual revenues of 456 billion $. Therefore the start-up companies we have selected for our analysis are concentrated in the software industry and we analyse the time that they reached Series C funding stage and the total amount raised in the process. At the same time we explore further four case studies, two for each region, and assess similarities and differences between Europe and USA. On average European start-ups that have reached series C funding is 1811 days or 5.03 years. Usually at this stage companies are well established in the market and it primarily relies on raising capital through the sale of preferred shares.