I had always been convinced that VCs should build the spearhead of economic liberalization and embrace cross-border M&A. In a recent article with VDI - Nachrichten Hendrik Brandis founder of German VC Earlybird reveals two very surprising points of view.

I always thought the recent M&A activity that German start ups had been bought (more than a dozen in the last 18 months) is a sign of competiveness of German start-ups and should be embraced as a great exit channel for investors. Instead Mr. Brandis argues it's the weakness of the German IPO market and calls for action to generate a new IPO channel. However what's missing is the awareness of buyers for such stocks. Germany has had quite some pulled IPO's recently, so there is no one else to blame than investors. The German "Neuer Markt" experiment busted and investors need time to forget this.

Even more surprisingly Mr. Brandis calls for public subsidies in a stronger commitment by authorities in the venture market. If you ask me this is not only wrong but also dangerous. Germany already has dozens of programs by various state-owned organizations fuelling the cash balance as loans or equity for thousands of start ups and SMEs. Germany is ranked in the TOP3 by GEM for public support of entrepreneurs. Furthermore such strong influx of public money can make the life of a VC also pretty complex as most early stage VCs in Germany also rely heavily on public subsidies and are restricted in their action by these programs. So this limits risk awareness and competitiveness for most companies in this area and in turn limits the opportunities for entrepreneurs and business models that get a financing.

I'm not sure what lead Mr. Brandis to such statements but I found it hardly appropriate...