EU VCs will be boosted by a Skype exit

If the rumors are proven to be true and if Skype is bought by eBay for something like $3bn to $5bn, the VCs (Draper Fisher Jurvetson, Index Ventures, Bessemer Venture Partners and Mangrove Capital Partners) who backed the company are going to make some impressive returns.

If successful, this exit should impact the European VC industry in a positive way since two of the original investors are Europeans. That actually is the main problem of the industry: how to exit a European company at an attractive valuation? In the US, a startup can IPO on the Nasdaq but in Europe, listing a small firm on the stock market seems quite a hassle. Although the London AIM is gaining some traction, it's still a long way from being a European Nasdaq.

Now that strategic buyers seems to be back and ready to pay hefty prices, I think LPs (ie: the funds who put money in the VCs) are going to have a more favourable view of this asset class and it will hopefully be easier for the European VCs to raise their funds.

Then, with no lack of ideas and entrepreneurs in Europe, VCs should be able to make some great investments. Even the FT thinks that the Sillicon Valley has shifted to Europe and Asia!