CREDIT INSIGHTS - EUROPEAN TECH LENDING
European Tech is transforming lending.
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11 March 2022 - Olya Klueppel, Partner at GP Bullhound, explores how the accelerating technology sector is transforming lending, and highlight the tremendous growth lending opportunities for mid-market tech companies (defined as companies between €20m and €200m in revenues) in Europe.

Data-driven investment process is revolutionising European financial services. European tech companies are attracting top global equity investors, corporate partners, and customers. The continent is no longer dominated by one or two hubs: unicorns have emerged in 28 countries and 98 cities, and a total of $275bn was created in exits via M&A, IPOs, direct listings, and SPACs in 2021 alone, marking an exceptional and record-breaking year for entrepreneurial activity and investment flows. Market observers believe that Europe has the strongest ever startup pipeline, on a par with the US, and the future is looking bright.

At GP Bullhound, we serve the needs of the world’s best entrepreneurs with transactional advice, research insights and capital, prioritising the development of data-driven lending products and outstanding customer experience to gain competitive advantage. We believe traditional lending products no longer have the right product or market fit: standardised term sheets with warrants and poorly designed covenants constitute a major hurdle for later-stage tech companies.

By making investments into IT and fully adopting the right data infrastructure and analytic tools across the investment process, lenders can gain higher profitability and stronger security, leading to better, simpler, and more flexible growth lending products, while also improving profitability, risk management and performance for the lenders. The rise of European tech requires a new approach to lending.

Enquiries
For enquiries, please contact:
Olya Klueppel, Partner, at [email protected]

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 10 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.


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