The worst is over

There is a new mood spreading across the world's technology markets: venture capitalists are beginning to feel better. Practitioners in both Europe and North America, after three years of concentrating mainly on damage limitation, have started to look forward again. Upbeat nautical metaphors are doing the rounds: tides are turning, fog is lifting, VCs are once again setting sails.

The upward trend has had an effect on us as well: we wanted to write about VC again. The result is large portion of this issue devoted to venture. Part of the cover story looks at the challenges facing European VCs at the beginning of the new cycle. A London-based practitioner tells of what it takes for Europeans to invest in communications-related technology. From New York, David Snow and Art Janik filed reports about the US market. Andy Thomson, the magazine's new Commissioning Editor who joined us in October, surveyed current venture trends in the Nordic region.

Part of what their findings remind off is that geography plays a crucial yet somewhat paradoxical role in technology-related investment. The venture world is both big and small: venture capitalists are having to stay close to local deal flow without ever losing sight of global market trends.

These and other issues raised in these issue are big and deserve further attention. The business of technology has become exciting again, but the future of venture capital remains difficult to predict. That is why, over the coming months, Private Equity International is going to follow this market closely. There is plenty to talk about.

Philip Borel

Managing Editor