Highlights from the IBA Annual Conference 2024: venture capital trends
Robrecht Coppens
Loyens & Loeff, Brussels
robrecht.coppens@loyensloeff.com
During the IBA Annual Conference in Mexico City, a distinguished panel of experts discussed the latest trends in the venture capital (VC) market. The panel featured Benjamin Ullrich from YPOG (Berlin), Emma Dansbo from Cirio Law Firm (Stockholm), Noreen Weiss from gunnercooke (New York), Mario de la Portilla G, VP of Legal at Fairplay (Mexico City), and Robrecht Coppens from Loyens & Loeff (Brussels).
The discussion delved into recent data on venture capital (VC) investments and fund raisings across Europe, the US and Latin America, examining investment volumes, sizes and sectors. Key trends in deal terms and investment structures were also highlighted, along with efforts to standardise contractual documentation for investments initiated in different jurisdictions.
The panel noted the continued dominance of the US in the VC market, while also recognising the growing potential in Europe and Latin America. Europe, in particular, is becoming increasingly attractive to US investors, who are now more willing to invest directly in European companies without requiring a flip transaction to the US. This aspiration also exists for Latin America, where – it appears – structures such as the ‘Cayman Sandwich’ are still market practice.
The panel identified several areas that need improvement for the European VC market to reach its full potential. These include increased financial support from European public authorities, regulatory harmonisation at the European level and further standardisation of contractual documentation.
The discussion provided valuable insights into the future of venture capital and emphasised the importance of ongoing efforts to drive positive change in the industry. Additionally, the panel introduced the Lean Documents project supported by the IBA European Regional Forum and IBA Closely Held Companies Committee to define a European standard for the main contractual clauses of an investment agreement for a Series A round.
