Venture Capital Takes Off in Europe
Marco Pescarmona had no trouble snapping up his first round of venture capital in 2000. He got $1 million to start an Italian online mortgage brokerage "in half an hour," he says. Europe's tech sector was soaring and investors were eager to fund startups.But by the time his company had spent the seed money and needed more cash a year later, the Internet bubble had burst and investors were running scared. Pescarmona's MutuiOnline faced financial crisis. "It was incredibly scary," recalls the CEO. "I thought we wouldn't survive." Pescamona and co-founder Alessandro Fracassi -- both business school graduates from MIT -- eventually scored another $5.2 million in venture capital.
MutuiOnline turned profitable in 2003 and hit $19 million in revenues last year, up 76% over 2004. With an estimated valuation in excess of $128 million, the company will likely pay investors handsomely for their steely nerves.
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