Business climate indexes for the German venture capital market

The business climate in the German private equity market hardly changed on the preceding quarter. In the fourth quarter of 2019, the business climate index for the later stage segment remained unchanged at 6.3 balance points. Later stage investors gave their current business situation and expectations nearly the same rating as before. The indicator for the current business situation was 11.1 balance points (-1.9), while the indicator for business expectations was 1.5 balance points (+1.9). On average for the year 2019, the business climate in the private equity market was on the upper edge of the normal range and thus remained well behind the two very good previous years.

German Private Equity Barometer 4th Quarter 2019(PDF, 146 KB, non-accessible)

The German VC business climate has weakened again but remains good. The business climate indicator of the later stage segment fell by 8.0 points to 10.1 balance points in the fourth quarter of 2019. VC investors rated their current business situation significantly poorer than in the previous quarter, while business expectations remained relatively stable. The indicator for the current business situation decreased to 13.2 balance points (-14.3), while the indicator for business expectations stabilised at 7.0 balance points (-1.7). A year of above-average market sentiment ended with the final quarter of 2019. Although the business climate remained lower on average across the year than in the three previous years, it was the fourth best since the indicator was launched in 2003.

German Venture Capital Barometer 4th Quarter 2019(PDF, 145 KB, non-accessible)