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Thursday, November 14, 2013

Investors flock to Europe in search of next Supercell, (NYSE: TWTR)

Riding a wave of euphoria surrounding the success of Finnish mobile game maker Supercell, venture capital firms are chasing after European tech start-ups in search of the next big thing. Japanese tech and telecoms group SoftBank's 51 percent stake purchase in 3-year-old Supercell, announced last month, valued the maker of hit games "Clash of Clans" and "Hay Day" at $3 billion."Everybody wants to be the new Supercell," Torleif Ahlsand, General Partner at Nordic technology investor Northzone, said at the annual "Slush" tech start-up conference in the Finnish capital.With low economic growth prospects in Europe and the United States, venture capital investors hungry for yield are looking to new tech start-ups to provide the high level of returns they seek. And the amount of cash chasing the next potential winner could drive up valuations.A strong market debut by Twitter Inc. in the United States and a comeback by Facebook following a shaky market debut last year has also lifted the mood.

Shares of TWTR remained unchanged at $42.60. In the past year, the shares have traded as low as $39.40 and as high as $50.09. On average, 35344500 shares of TWTR exchange hands on a given day and today's volume is recorded at 2510.