Knorr ends year with E14.5m loss

Following a first write-down last summer, the quoted German venture capitalist has knocked another E20m off its books, leading to an unexpected loss for the year.

Knorr Capital Partner, the Munich-based venture capitalist, last week announced it had written down the value of its portfolio by E20m and expected to end the year with a 14.5m loss. At the end of the third quarter of 2001, Knorr had recorded a E8.75m profit.

Knorr said that this latest correction, earlier write-downs and realised losses on investments took the year’s loss in value to E45.5m. The firm’s portfolio of 60 investment is now valued at E90m.

'We cannot expect a quick recovery of the venture capital market', said Thomas Knorr, founder and managing partner of the firm, citing the collapse of the IPO market and the poor outlook for technology companies among the reasons why the previous valuation had proven sustainable.

Knorr is planning to announce its strategy for the new year in February. The board of directors is expecting a return to profit in the course of 2002.