Loans for Start-ups as a New Asset Class in Europe

In the insightful article by Sven Janssen, CEO of Tradition Meets Future, featured in the “Börsen-Zeitung” on July 30, 2021, the author discusses the changing trends in startup financing in Europe. Janssen examines the practice of providing loans to emerging companies, contrasting it with the traditional model of equity financing that is common across the continent. He explains how venture capital investors, through venture equity funds, assume the financial risks of supporting new enterprises, with the expectation that a small portion of these investments will generate enough returns to cover the losses from others.